You can feel it approaching months ahead of time and when you come out the other side you feel like an accounting hero. We’re talking about your organization’s Year End. You know – that time of year when you work late, work weekends, have to meet impossible deadlines and you have nightmares about being chased by auditors…
Well the good news is, Altus Dynamics is here to help ease your nightmares and free up as much free time as possible for you. With Microsoft Dynamics NAV as the platform our solutions provide best practice systems and processes built into the solution. Combined with a central database and powerful real-time reporting it ensures you have the information you need to hand to prepare your year-end accounts and the reports to senior management. To make it even easier we have outlined below, the standard 11 steps carried out in NAV into this checklist for year end closing;
Year End Closing Checklist
- Post all open journals
- Post Recurring Entries
*Post those that need to be closed
- Inventory Reconciliation (optional)
*See year-end checklist for process steps
- A/R Reconciliation
*Tie customer trial balance report to the A/R account – By Customer Posting Group
- A/P Reconciliation
*Tie the Vendor Trial Balance Report to the A/P Account – By Vendor posting Group
*Commitments – to be discussed in more detail
- Fixed Assets
*Calculate Depreciation and Post Depreciation to the G/L
- Bank Accounts
*Reconcile each Bank Account using Bank Reconciliation module
*Enter Currency Conversion Rates that will be used for gain/loss valuation at the end of the fiscal year
- Lock Out Posting Year that will be closed
*Change Posting Dates in G/L Setup
*Check User Posting Setups – Only Set Values for users that are Exceptions
- Year End Close
*Verify upcoming Fiscal Year Calendar exists in Accounting Periods setup
*If not, create periods for the next year or two
*Close Accounting Periods for Year to be closed
*Close the Income Statement – By Dimension
*Open the Gen. Journal and enter Retained Earnings Account(s). Post the Closing Entry using a Closing Date.
*Verify the P&L Accounts have zero balance for new Fiscal Period
- Financial Statements and Budgets
*Create the budget for the upcoming Fiscal Year
*Run Year End Balance Sheet
*Run Year End Income Statement
*Run Any Statements of Operations
*Run the Trial Balance Report and verify balances
*Run Statement of Cash Flows
To download a copy of this checklist click here.
Common Problems with Year End Closing
At Altus Dynamics one of the ways our clients can resolve issues that arise is through our own support team. One of the many areas that our support team handles is helping our clients with problems they have in their year-end closing process. Below are 4 common year end support issues:
Issue 1: Commitment Roll-Forward filters on the purchase header and not the commitment posting date.
Cause: Product design; the “new posting date” filter required a date that is after the PO header date.
Resolution: Product has issued a hotfix where the report will filter based on commitment entries table rather than the PO header.
Issue 2: Year-end did not close per all possible dimension combinations.
Cause: Because we are closing by dimension, any entries that don’t have the dimensions will not be closed.
Resolution: Run report 50079 Sync Ledger Dimensions to align dimensions. Run year end process again.
Issue 3: Why don’t all of the entries close after posting the closing entries in the journal?
Cause: Dimensions on the GL Entry Level does not match what is the Ledger Entry dimension table.
Resolution: Backup live database, rename as test. Reverse register from year end process. Run report 50079 Sync Ledger Dimensions to align dimensions. Run year end process again. Repeat in live database.
Issue 4: Error when trying to post the Gen. Journal of retained earnings reversals.
Cause: G/L Account card may have value postings changed, or is blocked.
Resolution: A. Adjust the G/L Account value postings one by one for each error. B. For large changes to dimensions and G/L value postings, contact us for next steps.
We hope that helps give you some solace when your year end approaches. If you would like to know more about smoother year ends and the possibilities, drop us a note on our contact page.