Dynamics Community Forum Thread Details

Year End Close Account Not Closed to Retained Earnings

I had one P&L account that did not close correctly during the year-end close process, and carried forward a balance into 2024. I have seen other users discuss this issue, but only to the extent that the account was not properly characterized as a P&L account on the Card. That situation does not apply to me, because the account is correctly classified as a P&L account. I followed the recommended practice of reviewing an account SmartList before closing, and since this account was properly setup, it didn't appear in the SmartList as a BS account.

I have closed the year, we are well into 2024, and the account still has a balance in it from 2023 that should have been cleared out to Retained Earnings. Is there anything I can do to get it to close properly in 2024? I don't think I want to do a journal entry to close to Retained Earnings, do I? The 2023 financials are all correct and show the expense, so I don't want a negative expense in 2024. I just need to update Retained Earnings, without affecting the 2024 income statements. I need to essentially "reset" the 2024 beginning balance to zero, change retained earnings by the difference, but not have it appear in the 2024 P&L.

Categories:

Financial Management

Hello,

There are a few things that can be done. The account could have been changed after the close. There is no way to verify this other than this account rolled forward instead of moving to RE.

There is no way to do a one-sided entry in GP. If you wanted to post to the RE correctly, you would need an offset account. I would not suggest this and suggest troubleshooting this happening if the steps below do not solve it for you as there would be something wrong.

I would suggest the following:

Sometimes flags can be wrong in the backend and display incorrectly in the front end. I would first check the GL00100 and GL00105 for that account and see what PSTNGTYP is in the tables. 0 = Balance Sheet and 1 = Profit and Loss.
Now, the other thing I would keep in mind is that someone could have changed the posting type after the close. If this is suspected, then the steps below will need to have this reverted before undoing the year end close.
The below should be tested in Test to verify the end results are correct before doing it in live.
1. Restore a fresh copy of live to test.

Set up a test company - Dynamics GP | Microsoft Learn

1. All users need to be logged out of the environment for this process to work and not get errors attempting to do this unless you are on 18.6.
  1. Please note, the Reverse Historical Year was added in 2015 I believe and need to be on that version or later for this process.
2. Change the Account in question to be a Balance Sheet account.
  1. Cards | Financial | Account.
  2. Select the account.
  3. Change the Type.
  4. Save and close the window.
3. Reverse the Year End Close process using the Reverse Historical Year process.
  1. Open the Year End Close window.
    1. Financial >> Routines >> Financial >> Year-End Closing
  2. Click the Reverse Historical Year button.
  3. In the reverse historical year window, you will see the year that it will open.
    1. Click Process to re-open the year.
    2. Repeat this until the year in question is in an open status.
    3. Close the window.
  4. Reconcile all open years.
    1. Financial >> Utilities >> Financial >> Reconcile
    2. Select the year checkbox.
    3. Select the Open Radial Button.
    4. Select the oldest open year.
    5. Click Reconcile.
    6. Repeat for all open years in sequential order from the oldest to the news.
4. Change the Account back to a P/L type using the same steps as above.
5. Close the year again and determine if it now rolls correctly.
If the above does not work, do the steps above, but leave the Account set as a P/L before you re-open the year and then close it again as it could have been a interruption during the closing process.

If you still experience the issue, I suggest reaching out to your partner to dig into this further as this should not happen unless the account type is wrong. Alternatively, you could create a case with Microsoft to dig into the closing the process for this account and see if there is something wrong in the backend that is doing this.

The only time I have seen this happen is when the account is set wrong.

I hope this helps!

Brandon
Microsoft Dynamics 365 Implementation & Support | Cloud ERP Consultant (enavate.com)

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