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Distinguish between the income and expense regularization entry and the Balance Sheet closing entry

Posted on by 6
Hi,

ENGLISH: I work as a business intelligence consultant and right now I am working with Dynamics Finance data. In all the entries generated in the closing process, there are 2 different classes, one is the income and expense regularization entry, when income and expense accounts are regularize and the result transfered to the Income Summary Account, and the other class of entry is the balance sheet closing entry, where all accounts (including the Income Summary Account) are closed (and the reopened at the beggining of the next fiscal year). 
 
How can I distinguish between these 2? as I see, all the entries in the closing process have the same period (closing), same date, same posting type, same transaction type, same voucher... this is the first software I work with that does not incluide an easy way to distinguish between this 2 types of /closing entries/.
 

ESPAÑOL: En el proceso de cierre contable, hay dos asientos, uno es el de regularización de ingresos y gastos, en el que se netean las cuentas de ingresos y gastos (grupos 7 y 6) y el resultado se lleva a la cuenta RESULTADO DEL EJERCICIO (cuenta 129), y el otro es el asiento de cierre de balance, donde todas las cuentas se llevan a 0 (para luego reabrirse al inicio del siguiente periodo). Pero por lo que veo en los datos de Dynamics Finance, todos los apuntes del cierre tienen la misma fecha, el mismo posting type, el mismo transactions type, mismo asiento... como entonces voy a poder saber que registros corresponden al asiento de regularización de ingresos y gastos y cuales al asiento de cierre de balance? este es el primer programa de contabilidad en el que no veo una forma sencilla de distinguir entre estos dos asientos en el proceso de cierre.

Thank you very much for your help, I am really frustated by this.

Thanks
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  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 3,722 Super User on at
    Distinguish between the income and expense regularization entry and the Balance Sheet closing entry
    I can't answer either of your questions except to say that in 10 years of consulting on AX & F&O for large domestic and multinational companies, I've never seen this requirement.  Perhaps you need to reconsider your approach to your reporting requirements?  
  • BLLFinance Profile Picture
    BLLFinance 6 on at
    Distinguish between the income and expense regularization entry and the Balance Sheet closing entry
    Yeah Frank, I have looked into  Business performance analytics but I need to do a custom data model. 

    So there is no way in Finance to separate this 2 entries in the closing process? how can this be the only software on the market with this HUGE problem?

    Thanks
  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 3,722 Super User on at
    Distinguish between the income and expense regularization entry and the Balance Sheet closing entry
    Have you looked at Business Performance Analytics, released with 10.0.38, I think it was?  MSFT is already supplying a Power BI-based balance sheet and income statement in that tool.  Business performance analytics home page - Finance | Dynamics 365 | Microsoft Learn
  • BLLFinance Profile Picture
    BLLFinance 6 on at
    Distinguish between the income and expense regularization entry and the Balance Sheet closing entry
     Hi Frank,

    That is a very good question. The reason I need to do this is because in the Power BI Reports I am developing, I need to get rid of the Balance Sheet opening and closing entries (because I don't want to have a 0 in every line of the BS) but I HAVE TO maintain the income and expense regularization entry, because the result of the profit/loss of the fiscal period must appear in the  "Income Summary Account" and not in the income and expense accounts.

    So, if in the BS calculation I get rid of all the Closing entries, I will have the amounts in the income and expense accounts, instead of having the result in the "Income Summary Account". On the contrary, if I maintain all the closing entries, at the end of the year I will have a 0 in every line item of the BS. So the only solution is to keep the income and expense regularization entry and get rid of the balance sheet accounts closing entries.

    The problem is caused only in the "Income Summary Account" because this account plays a part in both kind of entries, and I can't distinguish which entries correspond to 
    the income and expense regularization entry and which ones correspond to the BS closing entries.

    For example in Business Central, the solution is very simple, the entries of the 
    income and expense regularization entry are kept in a different journal. In any other accounting software I have used as a data origin, the solution is also very simple, even on free accounting softwares. I can't believe F&O is the only software on the market where I can't do this.

    Thank you very much for your help.
  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 3,722 Super User on at
    Distinguish between the income and expense regularization entry and the Balance Sheet closing entry
    What's the context of your question - why do you need to distinguish between the two types?

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