I know, I know, who would do such a thing as close the same accounting period twice. But it happened and now they want to know how to fix the problem. We could simply reverse the entries from the second closing, but what would be the impact of that? Would it cause any problems that y’all can think of? The customer is worried that because closing entries start with a ‘C’ that it may cause more problems. Please let me know if you have any ideas and thank you very much for the response.
DON’T PANIC !!! Basically this is standard Navision. It’s actually quite common to close an accounting year more than once, and Navision allows for this. Just run the routine again, thre is no need at all to reverse the closing. In any case the routine just generates a journal, so you will be able ot see that th eclosing entries are fine. A typical reason for lcosing th eaccounting year twice, is when the company decides its fianla accounts, closes the year, then allong come th etax department, and refuse to allow certain deductions, so you need to do it again. Or the case where an error is found and needs to be fixed. Another common one is where thecompany is required to get a good estimates of accounts out ver fast, befreo all the numbers are known. In this case you close the year, then when all the adjustments are made, you do it again. The most important thing to remember is to be carefull to docuemnt your closing acount reports, so that there is no confussion later on.
Thanks for the reply. The problem they are having is that the closing entries were all doubled up (i.e. the first time revenue was closed out with a $1000 entry and the second time it closed out with another $1000 entry). So they are looking to reverse the extra entries. I know that typically if you closed the same account twice the second entry would be closed out at $0.00 (assuming there was no further activity). But that does not seem to be what happened here. So they are wondering if simply reversing the second entry will create any more problems. Thanks for all the help - Kevin
Hello Kevin, reversing the entries (with correction) should settle the matter. They probably created two Journal Batches for the closing of the year, and posted both. There should be no side effects if the journal batch is set up correctly (same closing date, reversed amounts, “correction” set). greetings Jens
What Jens says makes sense, i.e. that in fact its not that you closed the accounting year twice, but in fact created two identical journals and posted them twice. So if this was the case, then the solution is quite simple. Just Close the year again. This closing will gnerate a Journal that will automatically reverse the journal that you posted twice. BTW the journal created will also have “C” entries, so all will balance fine. If in fact, as you said originally, you closed the accounting year twice, then don’t worry, it will all balance by it self.
Kevin This is one reason to have only ONE person who does the closings. In my company it is ME. This reduces the possibility of this. BTW I have closed a year up to 9 times…so far, so yes you can close, reclose, re-reclose… The important thing is to have a journal number that you increment each time you close, so you can keep track of all the closing entries for the auditors. Gary
I just wanted to thank everyone for the responses. Before I posted this reply I also emailed customer support and have yet to receive a response. This Forum is definitely a huge help. Thanks to everyone out there willing to share their knowledge and offer such great help. Kevin