Year End Closing Issue!

Hi,

we have this case in our company, we had not done Year end closing for 2008 in Navision due to some operational problems. I am not a finance person, so my apologies if I’m a bit stupid in asking.

we have the Additional reporting currency setup (USD) but we never used it, this is what i heard from our Finance team. Can we skip this and close the fiscal year for 2008? becausce I was told that this will not create lines in Journal but our Accountant wants to see it in Journal.

Will there be any impact to Navision?. Our Reporting is in Local Currency Honk Kong dollars.

For the Year 2008, the Finance Team has calculated the “Retained Earnings” manually from the figures they obtained from Navision. Now, when we run the Fiscal Closing as per the navision manual it says, Navision calculates the Income statement and puts it in the Retained Earnings Account, the Value shown in Retained Earnings Account in the Journal is not the same as manually calculated.

So, is this a mistake done by manual calculation or anything to do with Navision?

Please let me know how Navision calculates Retained Earnings Value and what is that we have done wrong so that the Values are different.

Thanks in Advance!!

Jack.

If ARC is enabled, that’s true you won’t get the Journal to post yourself, insead, the BatchJob willl do the postings.

Why? There is NOTHING to calculate - simply take closing balances from ALL IncomeStatement accounts and “close” them to Retained Earnings account, this exactly is what the BatchJob does.

What accountants do afterwards is making different postings FROM this account to necessary others, as your country legislation requires. If you have profit, they split it between taxes, dividends, investments, whatsoever, if it is loss, then other, as they need.

and how do you think? Do they recalculate Excel spreadsheets on a 3$ calculator, too? [;)]

What you MUST check, is if Income/Balance field for all GL Accounts is set correctly. If by mistake some of IncomeStatement accounts have this set to Balance, there will be error, of course.

Forgot about unneeded ARC - if it is possible to change ARC, it should be possible to remove it, actually meaning changing to “none”.

I haven’t tried to remove, but what I do know, as I once did a change - it is a HUGE and very time consuming task. This is normal, because millions of records must be recalculated. Will it be faster, when ARC is changed to none, I don’t know. If you have a test DB, you may try it out, but don’t do it on production DB especially if it is of considerable size - you may end in unoperable system longer than it’s allowed.

Modris, Thank You very much…I think i understand what you are saying.

Ok,I did a testing in “Testing Data base” and here is how it shows:

We removed the ACY currency (USD) from G/L setup in the Field “Additional Reporting Currency” then we got a message, if you remove the additional reporting Currency there will no longer be postings…(long message) and then there was an option Yes & NO, we clicked on Yes.

Now, when we run the Year end closing process, it works fine and it created so many lines in journal. The last journal entry created, is the Account we selected in “Retained Earnings Account” and it has a Debit Balance.

Now, there is already an Existing Value in the G/L (Loss carried forward) when I manually summed up the Balance in this field to the Retained Earnings calculated by Navision, it Pefectly matches. It is just out by 36 Cents. Can this be manually adjusted out?

Now, only one Concern, what will happen to the balances in ACY? i guess they will remain there. Is there any impact?

I will show it to Accountant on Monday hopefully this Issue is resolved. I will let you know on Monday.

Thanks Again

Cheers!

Jack.

No. All fields referring to ACY in G/L records will be zero.

ACY presence or no doesn’t have any impact on main system. ACY functionality allows easier reporting to, say, mother company in another country - imagine, if you should carry out manual recalculations, how much effort & time it would take?

Modris, Thanks a lot!!

I will do a testing and let you know the outcome.

Jack.

Hi Modris,

We did the Closing for 2008 and the “retained earnings” are matching with the books.

Now, we have a strange Issue, when we do a filter in Chart of Accounts,on the field (Net Change LCY) we took a filter as 01/01/08…12/31/08.

It doesn’t show Zero Balances, instead it has values. Our Accountants say that this should become zero as we did closing for 2008.

I dont know if that’s right as I am not an accountant. What is your suggestion?

Appreciate any help on this!!

Thanks,

Jack.

Hi Modris,

We found the Issue. We forgot to put the “C” while filtering and that’s why it didn’t show the Zero’s.

Now, everything is fine but for ACY it didn’t close, the values still remain there. If you have any suggestion, then please do it.

But we decided to ignore the ACY Values as we dont report by ACY.

Thanks for all your help.

Cheers!

Jack.

Closing entries, which zeroes out IncomeStatement accounts, have this “C” - many reports have option Include/Exclude closing dates, so you easily can report as needed over closed period threshold, too, say Oct-2009…Mar-2010. Otherwise, everything from Oct-2009 till 31/12/2009 would become zeroed out by closing entry.

Yes Modris, we have identified this while doing a testing.

Thanks Again.

Jack.