Business Central Year-End Close

Posted on: April 24, 2023 | By: Emily Aro | Microsoft Dynamics AX/365

Not only is the end of the year busy with holidays and personnel vacations, but there is also a lot that needs to happen within Business Central. As the year draws to a close it is a good practice to start early and start reviewing outstanding purchase documents, sales documents, outstanding accounts payable and outstanding accounts receivable to see which transactions can be closed out and accurately reflect on the year’s reports.  Getting a jump on this can save a lot of heartache when closing the year within Business Central as it is vital to make sure everything is up to date when closing a financial year.

Before closing the accounting period, make sure to review and complete the below checklist.

Checklist:

  1. Post all open journals: payments, deposits, cash receipts, payroll
  2. Post recurring entries
  3. Complete Inventory Reconciliation
  4. Complete Accounts Receivable Reconciliation
  5. Complete Account Payable Reconciliation
  6. Fixed Assets: Calculate Depreciation and Post Depreciation to the G/L
  7. Bank Accounts: Reconcile all bank accounts
  8. Update allowed posting dates on the General Ledger Setup

Once the above checklist is complete, then the new financial year is ready to be created and the past year is ready to be closed on the Accounting periods screen. Now that the financial year is closed it is time to close the income statement for the past year from the Chart of Accounts screen. This process could take awhile so it is best practice to complete this in off business hours.

Finally, with the financial year and income statement closed, it is time to run year end reports. A few of these reports might include: Year End Balance Sheet, Year End Income Statement, Trial Balance, and Statement of Cashflows but there can also be business specific reports required.

Next Steps

If you are interested in learning more about Business Central year-end close and more, contact us here to find out how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.

 



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