This blog is to brief the necessary setup and steps for running year-end processes in NAV.
When you close at the end of the year, system transfers earnings from calculated earning to the Retained Earning account in the balance sheet and closes all income statement account.
You can run the year-end close process multiple times. NAV have the ability run the Close Income Statement as many times are required. When the journal is created, it posts with a ‘C’ in front of the date, for example C30062018.
Steps to perform year-end closing in NAV:
STEP 1. Using Account Period option to close the fiscal year
In the Search box, enter ‘accounting period’ and select the related link then click on ‘Close Year’
Message will prompt that will close and the consequences of closing the year, select Yes button
The fiscal year is closed and the Closed and Date Locked fields for all the periods in the year are selected. The fiscal year cannot be opened again, and you cannot remove the check mark from the Closed or Date Locked fields.
NOTE: You cannot close a fiscal year before you create a new one.
STEP 2. Using Close Income Statement option to generate year-end closing entries
This is a batch job processes all general accounts of the income statement type and created entries that cancel out their respective balances. Each entry is the sum of all general ledger entries on the account in the fiscal year. These entries are placed in a journal in which you need to specify a balancing account and retained earnings account in the balance sheet before posting. When you post the journal, an entry is posted to each income statement account so that its balance become zero and at the same time the year’s result is transferred to the balance sheet.
In the Search box, enter ‘close income statement’ and select the related link. Fill in the Options box that prompt, complete each option as require and click OK. The process to close the income will proceed.
To get help on each option in NAV, you can navigate to the area you are looking for assistance with and select the related field then press F1.
STEP 3. Review the general journal and post the journal with offsetting equity account
After you use the Close Income Statement batch job generate the year-end closing entries, you need open the journal you specified in the batch job, review those entries and post.
NOTE: If error is detected, an error message will be prompted. If the posting is successful, the posted entries are removed from the journal. After posting is complete, an entry is posted to each income statement account so that its balance becomes zero and the years result is transferred to the balance sheet.
This post was written by Katrine Ng, Solution Specialist at Evolution Business Systems.
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