Please find the Year-end closing process below:
Step 1: Create a new fiscal year
Path: Dynamics Ax > General Ledger > Setup > Periods > Periods
Click button 'Create new fiscal year'
12 monthly lines get created with open status.
Step 2: Control transactions in a closing period
A closed period cannot be reopened. Therefore, permission to close periods and years should be highly restricted.
Select 'Stop' from list and this prevents transactions posting in the system for that period, perfom same operation for 12 monthly periods.
Step 3: Change module status
Select the appropriate module and set the user group required access by selecting from list view in the above screen.
Step 4: Create Closing sheet
Path: Dynamics Ax > General Ledger > Periodic > Fiscal year close > Closing sheet
Set field 'Closing sheet' = 06/30/2011
Set field 'Name' = Closing Sheet as on 06/30/2011
Set value 'Posting layer' = Current
Set value 'Period code' = Closing
Note: Only 'Normal' and 'Closing' options can be used in closing sheet. 'Opening' option can be used for beginning balance transaction.
Click button 'Closing accounts'
Click button 'Load balances'
Notice the accounts and balances got updated in the screen.
Step 5: Make adjustments or transfers between accounts
Select an account line from the loaded balances and click button 'Transfer'
Note: For system reconciled accounts 'transfer' button would be disabled.
Set field 'Transaction text' = Closing transfer
Set field 'Amount' = -1500 (difference amount which needs to be transferred)
Select field 'Offset account' = 999999 (The offset account could be any relevant account, here I took example of 'Error account - 999999')
Close form 'Transfers'
Form 'Closing accounts' becomes active
After the necessary transfers or adjustments are complete, click the Post button from the Closing accounts form to post the closing sheet. The closing sheet only posts to the closing period.
At this time, also run reports and verify results before you close the period and transferring ending balances into the new year as opening balances.
Note: To post the closing sheet, you must open the closing period in the Periods form. After you post the closing sheet, ensure that you change the period back to Stopped.
Click button 'Close'
Step 6: Transfer Opening Balances & Setup Fiscal year close parameters
Enable GL Parameters:
Path: Dynamics Ax > General Ledger > Setup > Parameters > Ledger tab
Fiscal year close:
Delete close-of-year transactions during transfer : If this check box is selected, opening transactions and system-generated closing transactions that exist for the year to be closed are deleted when the transfer is processed again.
Create closing transactions during transfer : By enabling this option, have the system create closing transactions when running the opening transactions job.
Set period status to year closed : Select this check box to display a status of Year closed for all fiscal periods for the year that is being closed.
Voucher number must be filled in : If this check box is selected, a voucher number must be entered when opening transactions are created for a new fiscal year.
Note: If a period is closed, adjustments, which may be required by the auditor, are not possible.
Transfer opening balances procedure:
Path: Dynamics Ax > General Ledger > Periodic > Fiscal year close > Opening transactions
Click tab 'Dimension'
Dimension selection can be done here to transfer opening balances
Click button 'OK'
Please find the report of Closing transactions & Opening transactions
This completes the Year-End Closing process.
Hi Siva.. Thaks a lot.. the post was really usefull :)
Yes, As part of consolidation company setup we can configure at chart of accounts level.
Path: Dynamics Ax > General Ledger > Common forms > Chart of accounts > Select depreciation accounts and click 'General tab'
Find the field 'Consolidation conversion' which contains 3 options 'Average, Closing & Historical'.
Historical can be used here for system to consider historical rates mentioned in the exchange rates form.
Ref: Financial-consolidations-dynamics-ax-2009 (part-1) > Consolidation setup > Chart of accounts setup
Hi Siva, really good work u have done.
Can you please share with us related AX2012 functional articles, related AP, AR, Production and GL financial transactions, you have really good command on AX functional aspects.
I am working with CU3 and the Transfer to opening balances has changed. It now requires posting definitions? Any ideas on how to best do this now? Thank you.
We plan to conduct our first stock take on 23 March 2013.
I have gone through the UAT documents but I just need to clarify:
1) if I key in the stock take date in AX as 23/3/2013, does it mean that all stock take variances will be adjusted and effected based on the date we keyed in?
2) even though my stock take is on 23/3/2013, can I actually key in the date being 1/4/2013 so that the stock take differences can be adjusted in April 2013 instead?
Bear in mind that our stockholding is quite high, variances identified during the first round will need to be ivestigated and can only be finalised one week later (end March).
My concern is how can we adjust the variances, managing the movement after the stock take (say on 25/3/13, Monday) before we finalised the variances to be adjusted?
Keep up the good work.
Sival Thanks a lot for updating this post.
Also could you please let me know how can I check whether opening balances or transferred or not.
Opening entries can be validated through running financial statement for next year.
Please make sure if consolidations are done in AX then this closing process should happen for consolidation company as well.