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Year End Closing Training Tips for NAV

Posted by John on December 29, 2010

NAV Training Tips: Closing a Fiscal Year Part 1

Before you start the Year-End Closing you’ll want to know the answers to the following questions. This will help you prepare for your Year-End Closing steps.

Question: What are the three main steps of completing the year end closing process?

Answers:

  • Post the general journal.
  • Transfer the Income Statement account balances.
  • Close the fiscal year.

Question: What occurs after the Close Year process is run?

Answers:

  • Subsequent entries posted in the closed year are marked as prior-year entries.
  • The Closed and Date Locked check boxes in the Accounting Periods window contain check marks that cannot be changed.
  • Period lengths of closed periods cannot be changed.

Question: How Do I Post in a Closed Year?

Answer:

  • The Close Income Statement batch job must be run and then the transferred entries must be posted.

Question: What happens during the Close Income Statement batch job?

Answers:

  • Transfers the income statement account balances to an account in the balance sheet.
  • Creates lines in a journal.
  • Closes the income statement accounts.

Question: What type of account are closing entries transferred to?

Answer:

  • Retained Earnings.

Question: What occurs when posting the journal containing the closing entries?

Answers:

  • An entry is posted to each income statement account so that its balance becomes zero.
  • The retained earnings accounts are updated for the gain or loss.

Question: In the closing process, what occurs when an additional reporting currency has been set up in the General Ledger Setup window?

Answer:

  • The journal is automatically posted when the Close Income Statement batch job is run.

Question: What is used to transfer the income statement account balances to a balance sheet account?

Answer:

  • Close Income Statement batch job.

Question: What must occur to prevent users from posting in a closed period?

Answer:

  • Set a date range in the General Ledger Setup window.

Now that you know the answers to these basic Year-End Close questions you’re ready to start the steps. Check back Thursday to see the first steps in the Year-End Close process in MS Dynamics NAV. For more tips and training for NAV, check out our Webinar MS Dynamics Training Schedule.

Note: The same steps are used in both Ceres and eFood as outlined above for MS Dynamics NAV.

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