Applies to Product - Dynamics 365 Business Central
What’s happening?
The trial balance for Profit and Loss (P&L) should not display any beginning balance for the new year. However, in the system, the trial balance shows a beginning balance for the new year, which is a concern for users.
Reason:
The beginning balance for the new year appears because the previous fiscal year has not been closed.
Resolution:
- To ensure that the trial balance for P&L shows a zero beginning balance for the new year, the last fiscal year must be closed.
- If the fiscal year is kept open for an extended period, users may need to run a different report, such as the Fiscal Year Balance report, to obtain accurate data without the P&L balance showing in the trial balance report.
- Users can also check the general ledger setup and general posting setup to ensure proper configuration, as these settings define how data is posted and reported in the system.