Applies to Product - Dynamics 365 Finance
What’s happening?
The year-end closing procedure did not correctly transfer balances from the previous year to the next for certain accounts. Specifically, some accounts experienced issues where their closing balances were not carried over after the Year-End Close (YEC) process was completed.
Reason:
The underlying cause of this appears to be related to the main account type configuration. Accounts classified as "Profit and Loss" do not carry over their balances to the next year as they are transferred to the retained earnings account specified in the Year-End Close (YEC) template. Additionally, if there are no voucher transactions for the accounts during the YEC process, this can lead to the balances not being transferred.
Resolution:
- Verify whether the Opening account value is defined for the affected accounts in the General Ledger:
- Navigate to General Ledger > Chart of Accounts > Accounts > Main Accounts.
- Check if the Opening account value is set for the accounts in question.
- If the Opening account value is defined, this behavior is expected as per the system's design.
- If no Opening accounts have been predefined for these accounts, consider creating a shadow environment based on the production environment to further investigate the issue.
- Activate the "Optimize Year-End Closing" function from Feature Management after configuring the Power Platform in the legal entities.
- If the issue persists, gather detailed end-to-end reproduction steps about the issue, including screenshots and navigation paths, and share them for further troubleshooting.
- Ensure that any new license requests align with the renewal date to avoid future confusion and ensure a single consolidated payment for all licenses.
- If the balances are still not transferring, it may be necessary to unsettle transactions to allow for proper year-end processing.