Close Years and Periods
At the end of a fiscal year, there are a number of administrative tasks that you need to perform.
First, you must ensure that all documents and journals are posted. Depending on your company, you may need to ensure that inventory, manufacturing, and foreign currency data are up-to-date.
If you use foreign currencies, you will need to update currency exchange rates.
You can use recurring journals to allocate costs and income among accounts and dimensions, such as projects and departments.
Closing the fiscal year involves:
Closing the accounting period
Registering prior-year entries
Transferring balances from the income statement accounts to the balance sheet
If your company consists of a group of companies, you must create a consolidated company for the group of financial statements. You can consolidate company data from the same database as the consolidated company, from other databases in Microsoft Dynamics NAV, or from data files.
Companies in the European Union (EU) must report the extent of their trade with other EU countries/regions according to specific rules. You can use the Intrastat journal to prepare a report, which can be printed or exported to a data file.
To report and pay VAT to the tax authorities, calculate the VAT settlement amount for a period, create a VAT statement, and print a VIES declaration of trade with EU countries/regions.
The following table describes a sequence of tasks, with links to the topics that describe them. These tasks are listed in the order in which they are generally performed.
| To | See |
|---|---|
Get an overview of activities that are commonly performed at the end of a period. |
|
Restrict user posting date ranges. |
|
Update currency exchange rates and adjust the exchange rates of posted customer, vendor, and bank account entries. |
|
Allocate costs and income among accounts and dimensions. |
|
Print reports to verify general ledger, customer, vendor and bank account balances before closing a period. |
|
Close accounting periods, transfer income statement balances to balance sheet accounts and post the year end closing entry. |
|
Consolidate accounts for two or more companies. |
|
Report statistics on your company's trade with companies in other EU countries/regions. |
|
Report and pay VAT to the tax authorities. |
|
Print reports that can assist you in creating financial statements. |