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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / two fiscal years in one
Microsoft Dynamics GP (Archived)

two fiscal years in one

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Posted on by erino 20

My company is changing ownership and I need to do a year end close in the middle of the year.  So I need to set up two fiscal years in one calendar year.

 The problem is that when I set up new fiscal years - I can't name two different years "2008".  I had the idea to name it "2008 v.2 but of course that didn't work because the field for the fiscal year is 4 characters only and they have to be numbers.

 I don't want to set up a new company for the new owners.  The entire company, including everything on the balance sheet is changing ownership.  So I just need to close out a year to retained earnings, (in the middle of a month by the way.) But then continue on into the future and have the last few months of this year just be a short year for the new owners.

 HELP??  Anyone??

 

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  • nategagne Profile Picture
    nategagne 5 on at

    What I would suggest is to "manually" close out your P&L to retained earnings by creating one JE that would do this and posting it on whatever day you decide to do it.

    Then I would create another retained earnings account for the new ownership and I would then change the setup to close the financials at year end close time to this new account and proceed with business as usual after that until the end of 2008.

     At the end of 2008, I would run the 2008 year end close and it should take the remaining years P&L balance (because you already closed out the first part for the old owners in the step above) to the new RE account and roll forward the BS accounts.

     Is there a reason why you would not want to do this?

  • Community Member Profile Picture
    Community Member on at

    I have the same issue but with the twist that the new owners are buying only some of the balance assets, and at a premium at that.  This means that the Balance Sheet is going to be totally different.  I am on GP 10 or 2010 and am dealing with a whole lot of customization which the new owners need.  I am literally halfway through the 2017 year that will be ending in August 2017.  I would like to start anew but am only half way through the year.  How should I approach it?  

  • Community Member Profile Picture
    Community Member on at

    And I should add that the new owners want to keep the historical information for comparison purposes, especially the last six moths' figures.

  • Verified answer
    L Vail Profile Picture
    L Vail 65,271 on at

    Hi,

    This has come up several times in my world and it's been handled different ways, depending on what you're trying to accomplish. Here's the list:

    1. Close the year in the middle and just start the next year with the next available year. So, you would have a short year of 2016 (or whatever), and 2017 would be the remainder of the year of purchase. The first full year would be 2018, but the actual date would be the 2017 calendar year. This has not been a popular choice.

    2. Close the short year in 2016 and create a year for way in the past or way in the future to hold the date of your first stub year. Creating it in the past has been the most popular. You would create the year 1917 with the dates from the start of your short year, to the end of the year. Then, you could create 2017 starting on January 1st. You would only have one odd dated year, which in three years nobody would care about.

    3. Use the PSTL tools and scoot all of the years back one year so that you could keep the short year in sequence behind the new year. This is rather awkward going forward and I wouldn't endorse this approach.

    4. Create a brand new company and keep the old company as an archive for informational purposes. That's a loser because you already said you don't want to do that.

    5. Keep the year open and create a journal entry to 'close' the company manually. This has been suggested already by another member, but I didn't want to leave it out. If your company didn't buy the whole thing, You'll need to create a journal entry to adjust the 'close' so that it reflects the true beginning balances.

    6. Keep the year open and create two budgets that reflect the appropriate numbers for the two short years. You would use the budgets in place of the actual GL entries for creating financial statements. This is pretty slick; don't forget to password protect your budget and make sure nobody can enter transactions into that history year. The beginning balances of your first whole year will be right and it will match the actual year.

    I'm sure there are others, but those come to mind right now. I would love to know what solution you created if you would be so kind as to post an answer.

    Kind regards,

    Leslie

  • Community Member Profile Picture
    Community Member on at

    Thanks very much Leslie.  I really like suggestion # 2 and will go for it.  Thanks again.

  • L Vail Profile Picture
    L Vail 65,271 on at

    Cool,

    Have I adequately answered your question?

    Leslie

  • Community Member Profile Picture
    Community Member on at

    Yes, you have Leslie.  More than adequately.  Thanks again.  I truly appreciate it.

    Here is another issue I am having.  Hopefully, it will be the final one.  I already have a test company set up.  I was able to do the changes in the test environment.  I would like to show my boss what the Balance Sheet looks like before going live.  Hope this doesn't sound like a silly question, but how can I run FRX reports from the test environment?  I am on GP 10.  

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