Year End Close in D365 for Finance and Operations
Posted on: November 2, 2017 | By: Jarrod Kraemer | Microsoft Dynamics AX/365
Authored by: Chris Rusing
We are approaching year end for the 2017 calendar year, so I wanted to highlight the fiscal year end close process in D365 for Finance and Operations. I’ve blogged about this functionality for AX 2012, but they have made some nice improvements in the D365 edition, so I thought it would be beneficial for the users out there to see exactly what those enhancements are. Without further ado, let’s jump into the system.
Before we get started, it would be wise to examine the Fiscal year close parameters. Navigate to General ledger> Ledger setup> General ledger parameters
There are three certain configurations you want to pay attention to:
1. Delete close-of-year transactions during transfer; you want this selected to Yes as it will delete the opening transactions if you decided to rerun the fiscal year close process
2. Set fiscal year status to permanently closed; this should absolutely be set to No as it would close all the periods in your prior fiscal year, which would prevent you from making any transactions in those periods again
3. Voucher number must be filled in; it is considered best practice to set this to Yes so you can recognize the opening transactions in your trial balance with greater ease
Once those are configured, go to General ledger> Posting setup> Accounts for automatic transactions
Ensure that you have a main account listed for your Year-end result automatic transaction. This should be your retained earnings account.
Check to make sure you have a fiscal calendar created for the following year (2018 in this case). The form is in General ledger> Calendars> Fiscal calendars
Now that we are all setup, let’s go to General ledger> Period close> Year end close
A new page will open. Click New at the top of the page to get started.
Enter a group name for the year end you are closing and choose a fiscal calendar.
The new feature in D365 for Finance and Operations is that you can select multiple legal entities to run fiscal year close. Also, once the year-end close process has ran, it will populate the date it was last ran in the field next to Retained earnings.
As in previous version, determine if you want to transfer balance sheet dimensions or not by toggling the switch. This is optional, but it is considered best practice to have switched to Yes. Also, determine which dimensions for profit and loss accounts you would like to transfer. The Close all option will close all dimensions used for that main account and dimensions. So, if there were multiple transactions to the same main account, but to different business units, this option would create opening balances for each main account – business unit segment. If you choose Close one then you must select the financial dimension to close to. The financial dimension you close to will take all the transactions from the main account – business unit segment into one segment.
Once you are complete, click Run fiscal close at the top of the form. You can then select the legal entities you wish to run the process for. Click OK when complete.
Enter the parameters in the pop up form to the right. I’ve selected the fiscal year 2017 to close. My voucher will be YE17 to show which transactions were part of the year end close process. As in previous versions, you can run fiscal year end close as many times as you want. However, in D365, they give you the option of undoing the previous close or not. If you have this clicked to Yes it will reverse the previous close as if it never happened. This should normally be set to No because opening balances will update if any transactions are posted in the prior year. The process is normally run on a batch process, so you may have to wait for some time before it is complete. Click OK at the bottom of the screen when ready.
Check your trial balance for the 2018 year to see the opening balances that were created during this process. For additional information please feel free to reach out to us at info@loganconsulting.com or (312) 345-8817.
All the best!
Logan Consulting
www.loganconsulting.com