In this article

Additional resources

This is a base Microsoft Business Central feature. Please see more from Microsoft.

Video Walkthrough

Step-by-Step Instructions for Closing a Fiscal Year

Close the Year through Accounting Periods

1. Navigate to the Accounting Periods list.

   • Scroll down to find the year you want to close (e.g., 2024).

2. Close the Year:

   • Select Process > Close Year from the ribbon.

   • The system will take the oldest open account period. Confirm by selecting Yes.

   • The Closed column will now be ticked for all months of the year.

Run the Close Income Statement

1. Navigate to the Close Income Statement page.

2. Enter the Fiscal Year Ending Date.

   • e.g., December 31, 2024.

3. Specify Gen. Journal Template.

   • Select the General template from the drop-down menu.

   • Choose the appropriate Gen. Journal Batch.

4. Override the Document No. (Optional) if needed.

5. Specify the Retained Earnings Acc.

6. Choose the posting method in the Post Retained Earnings Acc.

   • Select either Balance or Details:

     • Balance: Posts one line to the retained earnings account.

     • Details: Post entries with the retained earnings account as a balancing account on each line.

7. Override Posting Description (Optional).

   • You can override the posting description or leave it as is.

8. Select Dimensions (If Applicable).

   • If working with dimensions, select all relevant dimensions.

Review and Post Entries

1. Navigate to the General Journals page.

   • Go to the general journal batch selected earlier.

   • Review all created lines.

2. Post Entries:

   • The batch job processes all income statement accounts and creates entries that reverse their balances using the offset account (retained earnings account).

   • The system adds a “C” in front of the posting date to identify closing entries.

   • The closing date is a fictitious date between the last day of the old fiscal year and the first day of the new year.

   • If Balance was selected, the last line will show the total amount for the retained earnings account.

3. Finalize Posting:

   • Post the entry to finalize the process.

Additional Notes

• The Close Income Statement batch job can be run multiple times.

• You can post in a previous fiscal year even after the income statement accounts have been closed by running the batch job again.