Key Points and Checklist For Your Month and Year End Process

Control over your company’s month and year-end can easily be attained using Microsoft Dynamics 365 -Business Central (originally known as Dynamics NAV). Regarding the month end: Completing cost and the revenue transactions, as well as performing reconciliation, for control accounts are done as per usual. These tasks are supported by out-of-the-box reports that will assist you to control and perform needed reconciliations.

For the year-end: After entering and posting needed adjustment entries, you can then close the income Statement Accounts towards ‘Retained Earnings’ account to close the fiscal year as defined on the system.

Month End and Year-end procedures easily achieved with the following checklist:

• Close period: Soft-closure type. Simply change the starting and ending dates of the system to delimit the period of time when users are allowed to post transactions. You can make user individual exceptions.
• Sales Order Invoicing: Finish open orders for the period. Have control over Orders you have shipped that still in need to be invoiced for a better collection.
• Purchase Order Invoicing: Manage your vendor account. Have control over the orders you have received; but, not yet invoiced.
• Production Order Completion: Make sure you have consumed the need components and produce the needed outputs and close your production orders. By finishing them, you take the value out of the WIP account and put it into the inventory finish goods account.
• Applying Open Entries to Payments (AR and AP): Use operational reports to identify which invoices need to be applied to payments or vice versa and reconcile as needed for the period.
• Exchange Rate Adjustments: Run the Adjust Exchange Rate report to adjust any not-yet adjusted open entries.
• Standard and Recurring Journals: Define recurring expenses in the system and come back to post them by the end of the month. They will update automatically for the next period as they get posted. Inventory Adjustments through Item Journals and/or Item
• Reclassification Journals: do the needed positive/negative Inv. adjustments, Inv. revaluation and reclassification between your warehouses?
• Bank Reconciliation: Reconcile your bank statements with the sub-ledgers of bank accounts on the system. Get easily straight forward format to process clearance of cheques, deposits and also write needed adjustments.
• Financial Statements: Manage different types of financial statements. At VOX, we provide standard templates (Balance Sheet, Income Statement, Cash Flow, Budget) and the option to get trained on how to edit current and create new ones.
• Inventory Periods: Review item valuation and reconciliation reports. Use the Adjust Item entries and then proceed to close the inventory periods to avoid getting by-mistake posted transactions on previous periods.
• Close Income Statement: Move the income statement accounts to the Retained Earnings account using the system function.

Having a checklist with the tasks and reports needed is crucial in order to achieve a painless month and year-end closure.  Instead of spending several weeks on preparing your reports using your legacy system, with Business Central, learn to finish your reports faster and smoother in just a couple of days.

Interested to know more?

Join our exclusive webinar on the Month and Year-end process on February 21. Click here for complete event agenda.

Blog post by David Morales – Financial NAV/Business Central Consultant