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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Closing Fiscal year (b...
Small and medium business | Business Central, N...
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Closing Fiscal year (balance sheet type)

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Posted on by DA-04051316-0 34
Dear everyone,

I am business central admin of D365.This is a first time, We are trying to close the fiscal year of 2024. after searching the tutorial content, I have learned we can close the fiscal year through two steps: closing account period and income statment. But My clients ask me to suggest the way to close the accounts with balance sheet category. But I could not find any way in busienss central. Can you guide me regarding this issue?
thanks in advance.
Regards,
Busienss central Admin
Categories:
Dynamics 365 Business Central
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 75,595 Super User 2024 Season 2 on at
    Closing Fiscal year (balance sheet type)
    Yes, there is no function in BC standard function to close the accounts with balance sheet category.
    This can only be restricted by Allow Posting Date.
    Hope the following can give you some hints.
    Dynamics 365 Business Central: How to use “Allow Posting From” and “Allow Posting To” in General Journal Templates – The third way to specify posting periods
     
    Thanks.
    ZHU
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 24,995 Super User 2024 Season 2 on at
    Closing Fiscal year (balance sheet type)
    Balance sheet accounts are not closed in the same way as income statement accounts, and there is no system function to perform such a closure.

    The reason lies in the nature of these accounts: balance sheet accounts provide a snapshot of a company's assets, liabilities, and stockholders' equity at a specific point in time, whereas income statement accounts reflect a company's revenue, expenses, gains, and losses over a period, typically a fiscal year.
    At the end of each fiscal year, the balances in the income statement accounts are transferred to the retained earnings account. This process resets the income statement accounts to zero, allowing the new fiscal year to start with a blank slate. This is done when you run the Close Income Statement function in the system. In contrast, balance sheet accounts carry forward their balances, as assets, liabilities, and stockholders' equity are continuous and do not reset annually.
     
    Perhaps they are thinking of restricting posting in those accounts for the closed year. To do this in business central, you use posting date restrictions. 
     
  • Suggested answer
    Khushbu Rajvi. Profile Picture
    Khushbu Rajvi. 5,856 Moderator on at
    Closing Fiscal year (balance sheet type)

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