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After ensuring that all your accounts are up-to-date, and you allocate costs and income, then you can close the books for a fiscal year or period.
Dynamics NAV 2016 is providing very easy process to close the accounting period. How to close a fiscal year:
- Click Financial Management, expand General Ledger, expand Periodic Activities, expand Fiscal Year, and then click Accounting Periods.
- In the Accounting Periods dialog box, click Close Year.
- When you are prompted to close a fiscal year, make sure that you want to close the fiscal year, and then click Yes. The check boxes for all the periods in this fiscal year are selected in the Closed area and in the Date Locked area.
After closing the fiscal year, you cannot change the periods of the fiscal year.
Dynamics NAV 2016 dosen’t allow any fiscal posting without defining the accounting period. You must open the fiscal year and define its accounting periods.
Dynamics NAV allow to use the Create Fiscal Year window to set up the accounting periods that suit your specific business needs.
To open a new fiscal year
- Choose the Search for Page or Report icon, enter Accounting Periods, and then choose the related link.
- In the Accounting Periods window, choose the Create Year action.
- Fill in the fields to define the structure of the fiscal year.
- The fiscal year is typically 12 periods of one month each, but you can also divide it in other ways.
- Choose the OK button.
You use bank accounts in the Dynamics NAV 2016 to keep track of your banking transactions. Accounts can be denominated in your local currency or in a foreign currency. After you have set up bank accounts, you can also use the check printing option.
To fill the Balance field with an opening balance, you must post a bank account ledger entry. You can do this by performing a bank account reconciliation.
Alternatively, you can implement the opening balance as a part of general data creation in new companies by using the Migrate Business Data assisted setup.
One of the significant challange you face as a finance officer, especially if your company makes frequent business transactions, is that of preparing a budget. A budget is a tool used for planning and controlling your financial resources. It is a guideline for your future plan of action, expressed in financial terms within a set period of time.
Dynamics NAV 2016 has multiple budget options for identical time periods by creating budgets with separate names. First, you set up the budget name and enter the budget figures. The budget name is then included on all the budget entries you create.
When you create a budget, you can define four dimensions for each budget. These budget-specific dimensions are called budget dimensions. You select the budget dimensions for each budget from among the dimensions you have already set up. Budget dimensions can be used to set filters on a budget and to add dimension information to budget entries.
Budgets play an important role in business intelligence, such as in financial statement based on account schedules that include budget entries or when analyzing budgeted versus actual amounts in the chart of accounts.
Will discuss more related Finance & Accounting in next post. Keep reading.