Month End Closing:

 If you are performing the month end closing for the month of Feb, we need to make sure that
the Allow posting date on user setup records to be marked with the date of Mar
2024.

 To ensure that the user will have the access to process the transactions even after the month
end without any issue.
 If there is a “Allow posting from date” populated in the user setup, then we should update the
“Allow posting to date” as well. If it’s not mentioned the user can go head and post for all the
future dates without any restriction.
 In the month of Mar, the “Allow posting to date” must be as the date related to Apr 2024 in all
user setup records.
 Change the “Allow posting from date” on all user setup record will ensure that no users will
be able to post the transactions to other months.
Close the Inventory Period (month end date e.g.: 29/02/2024)
 Inventory periods can be created in advance or during each month end.
 If multiple periods need to be closed, we can close the most recent period. All prior periods
will also be closed automatically.
 Inventory periods can be reopened at any time for any reason.
 To close a period, the system will verify whether there is any negative inventory. At the same
time system also checks for all costs on items are fully adjusted or not and posted.
 Run the close inventory period – test report to determine if there are any open outbound item
entries within the inventory period or any items whose cost has not yet been adjusted.
 Run the post inventory cost to G/L batch job to ensure that all costs are posted to the general
ledger.
 Accounting periods > Inventory periods > Choose the Post inventory to G/L action (which we
want to close) > close period action > post the inventory changes before the ending date >
click yes / No. Then the confirmation message will be displayed.
To reopen an inventory period
 Search for Inventory periods, then choose the related link.
 Select the inventory period which should be reopened.
 Choose the reopen period action then confirm.
 All the inventory periods with ending dates outside the period which has been selected will be
reopened.

 Change the Allow posting from date on all General Ledger setup records to first day of
following month.

 That ensures no user will be able to post any transactions for the last month.
Reconcile all Inventory balances to the G/L and run reports
and/or processes.
 For Inventory: Run the “Inventory Valuation” report and/or “Reconcile Inventory to G/L”
report (per Location depending on Chart of Accounts setup)

 If any adjustments to inventory are required, the Inventory Period can be reopened, and a
specific User Setup record can be updated “Allow Posting From” to 01/02/2024. Re-close and
adjust after all entries are completed.
 If there are any remaining non-inventory related adjusting entries that still need be done after
3/5/3024, you can set the “Allow Posting From” on selected User Setup records to 2/1/2024
(or 2/29/2024) to allow these users to enter/post journal entries.

Year End Closing:

 Create Accounting Periods for Next Year

 Accounting period > actions / Process > create year / close year.
 Close Accounting Periods for Current Year
 Close Income Statement
 Enter all values in the new window. When this process is run, the system will create a closing
journal entry in the journal batch specified by the user on the Close Income Statement
window.
 In the "Close by" section:
 Business Unit Code: Should be checked if closing by business unit.
  Dimensions: Choose a dimension code and post the closing journal. For multiple Dimension
codes, choose a dimension one at a time, review journal, post journal and then repeat the
process.

Bank Reconciliation:
 Bank reconciliation helps ensure that what's in your books matches the statements you receive
from your bank. Bank account reconciliation compares and matches entries in the bank
accounts you've set up in Business Central with bank transactions at your bank.
 Reconciliation can then post the balances to your bank accounts in Business Central to make
them available to finance managers. Bank reconciliation is also a practical way to discover
and resolve missing payments and bookkeeping errors.
 Search for Bank account Reconciliations.
 Choose a bank account for which the reconciliation is required or add as a new account.
 Click on the account which shows the Bank Acc Reconciliation page related to that account.
In which the statement date must be selected.

 Specific Bank account ledger entries will be viewed as per the statement date selected.

 Then go to Process and select the suggested line giving the start date and end dates.
  Now the comparison can be done between Bank account ledger entries and the Bank
statement lines.

 If there is any difference amount when both are compared, need to analyse why the difference
is reflecting according to which needful must be done.

Foreign Currency Revaluation:

  As part of a period-end, accounting conventions require general ledger account balances in
foreign currencies to be revalued using different exchange rate types (current, historical,
average, etc.). For example, one accounting convention requires assets and liabilities to be
revalued at the current exchange rate, fixed assets at the historical exchange rate, and profit
and loss accounts at the monthly average. The General ledger foreign currency revaluation
can be used to revalue the balance sheet and profit and loss accounts.

 Foreign currency revaluation is also available in Accounts receivable (AR) and Accounts
payable (AP). If you are using those modules, the outstanding transactions should be revalued
using the foreign currency revaluation in those modules.

 The AR and AP foreign currency revaluation will create an accounting entry in General ledger
to reflect the unrealized gain or loss, ensuring that the subledgers and general ledger can be
reconciled. Because the AR and AP foreign currency revaluation create accounting entries in
General ledger, the accounts receivable and accounts payable main accounts should be
excluded from the General ledger foreign currency revaluation.

 When you run the revaluation process, the balance in each main account posted in a foreign
currency will be revalued.

 The unrealized gain or loss transactions that are created during the revaluation process are
system-generated.

 Two transactions might be created, one for the accounting currency and a second for the
reporting currency, if relevant. Each accounting entry will post to the unrealized gain or loss
and the main account being revalued.

Process foreign currency revaluation.

 The foreign currency gains and losses based on the fluctuation of the effective exchange rate
between the posting date of a sales/purchase invoice and the date of a payment or any
applying entry.

 G/L setup must be done with the LCY code.

  You will be able to set the corresponding posting G/L Account No. for Realised and
Unrealised Gains and Losses entries by editing the Currency Card.

 Search for currencies, where all the required exchanges rates of different foreign customers
and vendors should be updated regularly or else can also be happen using some weblink
setup.

 I will be using EUR as the foreign currency (FCY) with the below sample setup on the
Currency Exchange Rates table.

 As per the above exchange rates, you may find the fluctuations. As the payments to and fro
will be in huge amounts, the difference will be noticeable.

 So, to avoid it a G/L account like Gain/Loss accounts will be created. Where in the profit and
loss amounts while doing the exchanges will get captured into this account. Thus, the final
ledger calculations will tally.

Process to perform revaluation:

 Currencies and their specific exchange rates must be updated in the system.

 As we create the purchase orders / sales orders on daily basis, for which the posting dates will
be as adjusted future dates. While creating the below shown field should be the updated by
the FCY to which exchange has to be implemented.
 Based on those dates the price gets reflected on the invoice and the same get posted onto the
ledgers.

 Till the payments are not done or the open entries are available, we can perform the Adjust
exchange rate.

 Fill all the details as per the below screen shot.

 Based on the rate, we may proceed and do the payment from the payment journals, applying
the entries.

 As per the gain or loss the amount (difference) will be captured in the G/L account which was
setup.