Year-end in Dynamics NAV RTC
Exchange rates
If exchange rates are used, these should be regulated before a year-end statement is made. If currency is not used or the rates posted are always valid, this section may be skipped.
The exchange rate regulation ensures that an adjustment is made if rates have changed since the accounting of accounts receivable, creditor, financial or bank items.
The run can be found under Departments -> Financial Management -> Periodic Activities -> Currency
Start date: This field is usually not filled in, but you can enter a date to indicate the start of the period in which the records will be regulated.
End date: Here you can specify the last date for regulation of records. This date is usually the same as the posting date in the Posting date field.
Accounting description: Here you can type a text for the financial records that will be created at runtime. By default, exchange rate adjustment of %1 %2 is proposed, where %1 is replaced by the currency code, and %2 of the currency amount that is regulated, i.e. the text could be: Exchange rate adjustment of DEM 38,000.
Posting date: Here you can specify the date on which the financial items should be posted. This date is usually the same as the end date in the End Date field.
Attachment No.: Here you can specify an attachment number to display on the financial records that are created at run time.
Regulate debtor, creditor and bank accounts: Select the check box here if you want to regulate for currency fluctuations in debtor, creditor and bank accounts.
Regulate financial accounts for extra rapp.currency: Here, check the box if you post in an additional reporting currency and you want to regulate the financial accounts for currency fluctuations between the relevant accounting currency and the additional reporting currency.
Click OK to start the run. If you do not want to use the run, click Cancel to close the window.
Cost pricing and inventory regulation
In order to ensure that the inventory value is calculated correctly, the cost of the goods should be regulated. This can either be set up to happen automatically under Inventory Setup, or it can be done intermittently by running built-in runs in Microsoft Dynamics NAV (Navision).
If you do not use items, you can skip this section.
First, run the run “Adjust cost price — commodity porter”. This ensures that the cost prices posted in the financial statements are up to date after you complete the run.
The execution can be found under Departments -> Financial Management -> Inventory -> Tasks
Once the cost prices have been adjusted, the run “Post inventory regulation” is run, which can be found under Departments -> Financial management -> Inventory -> Reports and Analysis -> Cost calculation
The Help for both reports provides a detailed description of what they do.
End of financial year
To be able to finish the year, start by finishing the periods of the year. This is done under Departments -> Financial Management -> Periodic Activities -> Fiscal Years -> Accounting Periods
NOTE: Once a period has ended, it cannot be reopened.
Click on the “End Year” button. It will display the following message:
Fiscal years end in sequence, so if there are periods from previous ones that have not been closed, these will be closed first.
Storage periods can be opened and closed as needed.
Resetting income statement
After that, the result must be transferred to the balance sheet. This is done by unwinding the run “Reset income statement”, which is located under Departments -> Financial management -> Periodic activities -> Financial year
This run will look at the balance of all accounts that are of type Income Statement and make a draft of an End Date. This date does not relate to the old or new financial year and is used solely for accounting for the reset.
Fiscal year end date: Here you can specify the last date of the completed fiscal year. This field must be completed. It is used by the program to determine the end date.
Financial journal type: Here you can specify the name of the financial journal type in which the records will be placed. Click the AssistButton on the right to view the existing ledger types.
Financial journal name: Here you can specify the financial journal name to place the records in. Click the AssistButton on the right to view the existing financial journal names.
Attachment No.: If you have filled in the Financial journal type and Financial journal name fields, this field is automatically filled at runtime with the next available number from the number series to the journal name. You can also fill in the field manually.
Profit account: Specify the account in which profit records will be placed. Click the AssistButton on the right to select the account.
Posting description: Here you can type the text that the entries should be provided with. By default, Reset income statement is suggested.
Reset per. Konc.Enterprise Code: Select the box to create a record for each conc.Enterprise code.
Reset per. Dimensions: To create an entry for each dimension used in the financial account, click the AssistButton on the right and select codes for the dimensions.
If you want to be able to report on dimensions, e.g. Balance reports, so it is important that this field is filled in with the dimensions you want to report on. This could be a department, for example.
The inventory period is closed: This field indicates that storage periods with end dates that are the same as or later than the last date of the accounting period are closed.
If you do not want to close by group companies or dimensions, only one record is created for each account.
Click OK to start the run. If you do not want to use the run, click Cancel to close the window.
The formed draft is reviewed and posted. It is only in the accounting process that the reset itself occurs.
After the accounts have been completed and reset, it is still possible to make postings.
If you have post-closing entries, post them on the date they actually belong to in the closed period. And the run Reset income statement again and the journal is posted.
These financial items will be marked in the “Postage” field and can therefore easily be found again.
