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Close Income Statement issue

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Posted on by JohnGPIT

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:

The Problem:

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.

What I’ve Tried So Far:

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.

Questions for the Community:

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!

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Dynamics 365 Business Central

Accounting Period...

Close Income Stat...

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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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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JohnGPIT 18 on at

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@Valentin Castravet, thank you for your suggestion.
I installed the custom app that you suggested, please see images below.

I'm still unable to edit the Fiscal Year from the accounting period.
Is there something else that I need to do to be able to edit the fiscal year?

Thank you for your help

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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When you open a table using the data editor app there's a boolean field "Without Validation" that you can select. You need to select this option, otherwise you will get the error messages below.

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

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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Hi, hope the following helps as well.

Dynamics 365 Business Central: Can we skip/ignore field validation errors?

https://yzhums.com/44435/

Thanks.

ZHU

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JohnGPIT 18 on at

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I have used the Data Editor table and corrected the dates accordingly
However, I closed 12/31/2022 from the Close Income Statement, however I am unable to close 01/31/2023

What's going on? am I missing something?

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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In your screenshot in the fiscal year ending date you have january 1. You need to enter december 31.

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

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JohnGPIT 18 on at

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Hi @Valentin Castravet,
I have tried that before and I got the same error.
I also logged out and logged back in incognito mode thinking that it could be cached but it didn't work.
What do you think the issue could be?

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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that still looks like january 31, not december 31 in your screenshot

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JohnGPIT 18 on at

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@Valentin Castravet but I want to close each month separately.

I put 12/31/2023 will it close all the months of 2023? if yes, is there a way just to close one month at a time

Thank you again for your continuous support and guidance.

John

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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Typically, you only close once per fiscal year. Is there a specific reason you’d like to close monthly?

The system allows closing only when there’s an accounting period marked with the New Fiscal Year boolean on the Accounting Periods page for the next period. If you want to close monthly, you would need to mark this boolean as Yes every month. However, as mentioned, this isn’t something I would recommend.

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

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