Dynamics Community Forum Thread Details

Close Income Statement issue

Hello D365 BC Community,

I’m currently facing an issue with closing a fiscal year and aligning my fiscal year setup in Dynamics 365 Business Central. Here’s the situation:

Incorrect Fiscal Year Setup for 2024:
- My fiscal year was initially set up incorrectly for 2024, where the New Fiscal Year checkbox was marked for 12/1/2024 instead of 1/1/2024.
- As a result, the system seems to treat December 2024 as part of the next fiscal year instead of the end of 2024, I couldn't delete it because there was transactions posted in 2024 which made the activated the date lock field in the Accounting periods
Closing 12/31/2023:
- I need to close 12/31/2023, but due to the above misalignment, I’m not sure if the system will treat this correctly.
- I have already attempted to adjust the Accounting Periods, but because of existing transactions in 2024, I cannot delete or fully realign the 2024 fiscal year.
Existing Transactions in 2024:
- Transactions were created and posted in 2024 before the Accounting Periods for 2024 were defined. This has caused additional complexity in adjusting the fiscal year setup.

Corrected the fiscal year setup for 2025 and beyond to ensure they align with a January–December fiscal year.
Verified that General Ledger Setup allows posting within the appropriate date ranges, thinking this should allow me to remove the date lock in the accounting periods but that wasn't successful and it didn't work.
Attempted to close the income statement for 12/31/2023, but I want to ensure this will not create further issues with the misaligned December 2024 period.

How can I close 12/31/2023 properly, because as you can see in the image I am unable to close it ?
Is there a way to fix the fiscal year alignment for 2024 without reversing or deleting the posted transactions for that year?

Any guidance or recommendations would be greatly appreciated! Let me know if you need more details or screenshots to clarify the issue.

Thank you in advance for your help!

Categories:

You have two options:

1. Modify the accounting periods using configuration packages or this custom app

You can use configuration packages to modify accounting periods. I wrote a guide about using them here. With configuration packages you can remove validation when modifying data.
Or use the app mentioned above to adjust your accounting periods and correct the year end/beginning. Accounting periods are primarily used for reporting and closing the income statement, so there should be no negative consequences to modifying them.
Note: Your 2024 accounting periods also seem to start in December. It appears the person who initially created the accounting periods consistently set them up this way and I'm not sure why.
This is the option I'd definitely recommend.

2. Close 2023 twice using standard functionality

Close the income statement first for the period ending November 30, 2023, and then again to close December 2023.
Downsides: This creates two "Close Income Statement" entries. If you use the financial reporting module, running a report for the full year of 2023 won't be straightforward. The same case for running any other reports or looking at financial numbers in the GL, you'll always need to adjust your filters for the November close.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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