Closing the financial year with Business Central

[[email protected]]

Before you begin the closing process, it is important to ensure that all accounting transactions for the period have been recorded and accounted for correctly. It is advisable to review all accounting entries and ensure that they are complete and correct. It is also essential to check that all business accounts have the appropriate adjustment accounts assigned to them. This can be done using the “Test Chart of Accounts” function from the Chart of Accounts window, in the process section.

Step 1. Using the “Account Period” Option
Using the search icon in the top toolbar, type “accounting period” and select the related link. Then click “Close year.”

On the “Account Periods” page, you can select “Close Year” under the “Process” or “Actions” action.

Accounting period

The fiscal year is closed and the Closed and Block Date greece telegram data fields are selected for all periods in the year. The fiscal year cannot be reopened and you cannot remove the check mark from the Closed or Block Date fields.

Step 2. Using the “Close Income Statement” option to generate year-end closing entries
This batch job processes all general ledger accounts of the income statement type and creates entries that cancel out their respective balances. Each entry is the sum of all general ledger entries in the account in the fiscal year. These entries are placed in a journal in which you must specify a balance sheet account and a retained earnings account on the balance sheet before posting. When you post the journal, an entry is posted to each income statement account so that its balance is zero and at the same time the profit and loss for the year is transferred to the balance sheet.

Using the search icon, enter “close income statement” and select the related link. Complete the prompts in the “Options” box, fill out each option as necessary, and click “OK.” The process of closing the income statement will proceed.