Dynamics 365 Business Central Tips and Tricks: Close and Re-Open Year-End Close in Business Central
This blog post will assist you with year-end close and how to perform a year-end close. Please note, these windows may change if you have Multi-Entity Management from Binary Stream (MEM).
Step One- Run the chart of accounts list to make sure all Income Statement accounts are designated Income Statement and all balance sheet accounts are designated Balance Sheet. Fix the ones that are not as this is how Business Central will know what accounts need their balances closed at year-end.
Step Two- Make sure all entries for the year are posted for all subledger and general ledger entries. Balance your subledger to your ledger and make sure the customer trial balance, vendor trial balance, posted bank statement and inventory valuation reports match your balances in the general ledger trial balance.
Step Three- Run a Financial Trial Balance Summary report as of the year end to save in your records.
Step Four- Take a backup of your BC Database if you are on-premise. For Business Central cloud, backups are handled by Microsoft and you can use restore in case you mess up and need to revert. You will find the backup and restore options under the environment details page. If you want to do a mock close, you can copy a BC cloud environment to a sandbox and practice there.
Step Five- Close the year. Navigate over to Accounting Periods. Use the Close Year feature to close all entries for the year. Don't forget to make sure the periods are open for the new year using create year, if you have not done so already.
Step Six- Close Income Statement. This process will create the entries to close out your year for your income statement accounts and role them into Retained Earnings. Verify your retained earnings account. I like to create a unique Journal Batch/ID for these entries.
Note: If you want to close dimension balances for the year, you can do that here as well!
Step Seven- Review the batch created in the close income statement batch you created or selected and then post when ready.
Step Eight- Run a new T/B Summary report as of the first of the year to validate all balances close out.
If you need to book entries after the year is closed, you can go into general ledger setup and change the Allow Posting From Date back to the prior year and then book the entry for that year. Once done, you will re-run the close income statement function, post the batch and the go back and update the Allow Posting From Date to avoid any other entries being made.
If you don't want to open allow posting for all users, you could just update it for one user on the user setup window. This will allow the one user to post and override the dates on the general ledger setup window.
Pretty super easy to do! Don't forget, you can always copy BC to a sandbox and practice there first.
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