Closing Business Central fiscal year: how do you do that?
The year’s end is approaching, so many companies are preparing for one of the most important administrative tasks: closing the financial year. A correct year-end close is essential to ensure your financial records are accurate, complete, and ready for the new year. With Microsoft Dynamics 365 Business Central, you can carry out this process clearly and in a structured way. Whether you are an experienced user or just starting with Business Central, you can close your financial year smoothly and error-free with the right step-by-step plan. Follow the steps below to complete the process successfully.
Business Central fiscal year close: preparation
Before you can close the financial year smoothly, some essential month-end and year-end activities must be carried out:
- Process all purchase and sales orders and invoices;
- Delete invoiced purchase orders (batch): archive or delete them, depending on the settings;
- Book/process all costs and income;
- Update any journals (e.g., financial or depreciation);
- Revalue currency exchange rates, if applicable;
- Divide costs across accounts and dimensions;
- Check reports for ledger, customer, vendor, and bank account balances.
Once these preparations have been made, you can start closing the financial year. This is done in two steps:
Step 1: close the booking periods
- Open the search function and type ‘booking periods’;
- Under ‘Booking periods’, select ‘Manage’ to see which periods are open or closed;
- Go to the menu and choose ‘Start’ and ‘Close year’ to close the oldest unclosed financial year.
Step 2: close the income statements
- Use the search function and type ‘exit’;
- Select ‘Closing WenV account tasks’;
- Fill in the fields such as the end date, ledger account, and dimensions;
- Process the financial journal:
- Go to ‘Finance menu’, then ‘Financial journals’ and select the ‘Standard’ journal batch;
- Check if the rules are visible. Use the ‘Show more columns’ option to view all the details, such as the booking date;
- Please note that the booking date is always an Ultimo date (for example, U31-12-2023), which helps to keep balances clear.
- If desired, you can test the booking and click ‘Start’, ‘Book’, and ‘Yes’ to finalize it.
Closing Business Central’s fiscal year: the guide
Are you interested in an extensive manual? Download it here or by clicking the button below.
This step-by-step plan is intended as a reference tool. Because Business Central is set up flexibly, specific settings and procedures may differ per organization. With these straightforward steps, you can close the financial year efficiently and prepare your administration for a new year.
Do you need help closing a fiscal year in Business Central?
Mark Landman
+31858200802
info@bluace.nl
