9 Year end Close

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<b>Microsoft Dynamics</b>

<b>®</b>

<b> AX 2012</b>

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During month end, following are the steps which
are followed in general:

• _{1. Posting Accrual entries.}

• _{2. AP invoicing and payment activities closure.}

• _{3. AR invoicing generation and payment receipt}

• 4. General ledger Adjustment entries

• _{5. Tax settlement}

• _{6. Depreciation of assets posting.}

• _{7. Bank account reconciliation}

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<b>Monthly Closing: </b>

• <b>_{Step 1: Post all open journal vouchers for the}</b>

month in all relevant modules

• <b>_{Step 2: Closing and adjustment Inventory cost}</b>

(please refer to training manual of Inventory
management)

• <b>_{Step 3: Perform exchange adjustment for}</b>

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• <b>Step 4: Allocation expense to evaluate profit </b>

and loss (from 632, 641, 642, 635, 811 to 911
and from 511, 521, 531, 515, 711 to 911 and
from 911 to 4212)

• <b>_{Step 5: Print financial reports}</b>

• <b>_{Step 6: Change status of period to “Stopped”}</b>

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• <b>Detail in Step 3:</b>

Exchange adjustment for AR

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• <b>Method: Choose “standard” to perform </b>

exchange adjustment regardless whether the
results is loss or profit

• <b>_{Considered date: The date which the exchange}</b>

adjustment is posted

• <b>_{Date of rate: the date of exchange rate}</b>

• <b>_{Press Select button to choose customer}</b>

(optional, if you do not choose this, the system
will collect all customers)

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<b>Exchange adjustment for AP</b>

• <b>_{Click Account payable > Period > Exchange}</b>

<b>adjustment</b>

• Perform the same step as exchange adjustment

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• <b>Exchange adjustment for GL</b>

• <b>_{Click General Ledger > Period > Exchange}</b>

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• <b>Account: choose ledger account range to create </b>

exchange adjustment

• <b>_{Date: choose period interval of the exchange}</b>

adjustment

• <b>_{Currency code: choose currency range to}</b>

create exchange adjustment

• <b>_{Adjust profit & loss accounts: select this to}</b>

adjust transaction in profit & loss account

• <b>_{Adjust balance sheet accounts: select this to}</b>

adjust the balances of balance sheet account

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<b>Detail in Step 4</b>

• _{At the end of each month you will process the}

allocation rule to transfer amount to valuate
profit and loss

• <b>_{Go to General ledger -> Periodic -> Process}</b>

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• <b>Allocation rule: select the allocation rule that </b>

you want to run

• <b>_{As of date: select the last date. System will}</b>

collect all the transactions that have the date
before this date

• <b>_{GL posting date: select the date to create and}</b>

post this allocation journal

• <b>Proposal option: select ‘Proposal only’ value. </b>

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• Press Line button to see detail information of the

journal. System will get the current balance of
source account and transfer to destination

account follow the allocation rule.

• _{You can validate and post this journal if the}

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<b>Step 5: Print financial reports (refer to Reports </b>

<b>part) </b>

<b>Step 6: Change status of period to “Stopped” </b>
<b>or “Closed”</b>

• <b>_{Click General ledger > Set up > Periods}</b>

• <b>In status field, choose status to “Stopped” or </b>

<b>“Closed” to prevent posting transactions in the </b>

closed month. You should choose status is

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<b>Closing entry at the end of fiscal year: </b>

Follow these steps to close current fiscal year

• <b>_{Step 1: Post all open journal vouchers for the}</b>

month in all relevant modules

• <b>_{Step 2: Closing and adjustment Inventory cost}</b>

(please refer to training manual of Inventory
management)

• <b>_{Step 3: Perform exchange adjustment for}</b>

Account receivable (AR), Account payable (AP),
General ledger (GL)

<b>Step 4: Create new fiscal year</b>
<b>Step 5: Back up company data</b>
<b>Step 6: Make adjustment entry </b>
<b>Step 7: </b> Print Financial Statements

<b>Step 8: </b> Transfer closing balance to new fiscal year
<b>Step 4: Create new fiscal year</b>

<b>Step 5: Back up company data</b>
<b>Step 6: Make adjustment entry </b>
<b>Step 7: </b> Print Financial Statements

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• <b>_{Step 4: Create new fiscal year}</b>
• <b>_{Step 5: Back up company data}</b>
• <b>_{Step 6: Make adjustment entry}</b>

• <b>_{Step 7: Print Financial Statements}</b>

• <b>Step 8: Transfer closing balance to new fiscal </b>

year

<b>From step 1 to step 3: Perform the same as </b>

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• <b>Step 4: Create new Fiscal Year</b>

• <b>_{Click General Ledger > Set up > Periods >}</b>

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<b>Step 5: Back up company data (contact IT </b>
<b>management)</b>

<b>Step 6: Make adjustment entry</b>

• <b>_{Click General Ledger > Periodic > Fiscal year}</b>

<b>close > Closing sheet</b>

• <b>_{Enter closing sheet, name, and posting layer}</b>

<b>as current</b>

• <b>Click General tab; fill in period interval, posting </b>

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• Click “transfer” to adjust amount. Click Save icon

• <b>_{Click post to post the balances and adjustment}</b>

to the closing sheet

<b>Step 7: Print Financial Statements (refer to reports </b>

part of this document)

<b>Step 8: Transfer closing balance to new fiscal year</b>

• <b>_{Click General ledger > Period > Fiscal year}</b>

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• <b>End date: choose closing date</b>

• <b>_{Balance account: choose “Closing ->}</b>

<b>Opening”</b>

• <b>Account for transfer of year-end result: </b>

choose current undistributed profit & loss

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