All Accounting Periods erroneously marked as New Fiscal Year

One of my customers has erroneously marked all of their Accounting Periods in 2012 (normal calendar month) as ‘New Fiscal Year’. And did also close all these 12 periods with the ‘Close Year’ function in the Accounting Periods form.
Now, trying to post the ‘Close Income Statement’ for a fiscal Year Ending Date of 31-12-2012 results in journal lines that will only post the result of the month of December.

I advised my customer to run the ‘Close Income Statement’ for each Accounting Period that has the ‘New Fiscal Year’ check-box ticked, i.e. 12 times for each Fiscal Year Ending Date: 31-01-2012, 29-02-2012, 31-03-2012, etc.

Would this procedure cause any inconsistencies in their Trial Balance for 2012 or Fiscal Year Balance?
Any comment is appreciated!
Btw: they use NAV5.0SP1.

Dear Gendringen,

As your Fiscal year is From JAN to DEC, IF you ‘Close Income Statement’ batch job monthly then system will find the difference between all your incomes and expense accounts (Income/ balance = Income Statement) and post the difference amount to retained earnings account. Now all your income and expense net change will become zero. When you generate the Trial balance (standard Report) and profit and loss account from the system as all the accounts have already been nullified then you will not have net change figures on the Trial balance or Profit and loss accounts. Also your Chart of account amount fields for the Income statement accounts also will be blank.

Dear Vipin,

Ok, that sounds feasible. But, what would be the alternative? If my customer only runs the ‘Close Income Statement’ for the last ‘Fiscal Year’ (i.e. only Fiscal Year Ending Date 31-12-2012), then only the net changes for the month of December 2012 would be posted to retained earnings account.

  • Would that create a normal starting balance and income statement for 2013?
  • And what would be the consequence for 2012 overviews?

have you ever closed the accounting period? The ideal solution is to get your new fiscal year field ’ Yes’ on the Actual fiscal year starting month. You will have to check with the technical expert about the modification of monthly new fiscal year to the Actual fiscal year. If you get the new fiscal year yes only on the actual fiscal year then you will be able to close the income statement batch job as usual.