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Fiscal Periods and Fiscal Years

A fiscal year is typically divided into 12 monthly fiscal periods. In Microsoft Dynamics NAV, you can have two fiscal years open at the same time. You cannot create a third fiscal year if there are two fiscal years open.

To close a fiscal year, you must close the accounting periods within that year.

You can only reopen a closed accounting period if the period falls within an open fiscal year. For more information, see How to: Close Years. You cannot reopen a closed fiscal year.

Closing Fiscal Periods and Fiscal Years

After a fiscal year is complete, you must close the accounting periods within that fiscal year. This is to ensure that general ledger entries are not posted for that period. For more information, see How to: Fiscally Close Accounting Periods and How to: Fiscally Close Years.

A fiscal year can be closed if all of the following criteria are met:

  • The posting dates in the User Setup window and the General Ledger Setup window do not fall within the year that you are closing. For more information, see User Setup and General Ledger Setup.

  • The fiscal year has been closed using the Close Year function in the Accounting Periods window. For more information, see How to: Close Accounting Periods.

  • All of the unposted journal lines and simulation entries for the year have been posted or deleted.

  • All closing entries are up to date.

When you close a fiscal period, the earliest open fiscal period is closed. The Allow Posting From field in the General Ledger Setup window is updated with the start date for the next open period, if the existing date in this field is not already a later date. If the Allow Posting To field in the General Ledger Setup window is within the closed period, then the value in the Allow Posting To field is updated with the end date for the first open fiscal period. For more information, see General Ledger Setup.

At the end of the year, you must do the following:

  • Close the fiscal year using the Close Year function.

  • Generate a year-end closing entry.

  • Post the year-end closing entry, along with the offset equity account entries.

  • Close the fiscal year using the Fiscally Close Year function.

See Also

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