This is what happens in the video
To post in the G/L ledger in Business Central, you need defined accounting periods. You create accounting periods one month at a time, and you close the fiscal year through those same periods when you have finished posting for the year.
You find accounting periods in the menu. From there you can see which years are open and which are closed. A closed year is marked accordingly, so you can quickly tell where you stand.
To create a new year, run Process and Create Year. You define the starting date, the number of periods, and the period length, which is normally a month. After you press OK, the system opens the new year for you.
To close a year, run Process and Close Year. The system suggests closing the periods you have created and sets the checkmark for the new fiscal year. Only close a year when you are certain you have finished all posting within that year, because closing is something you do when everything for the year is finalised.
Why accounting periods are required for G/L posting
Before you can post in your general ledger, accounting periods must exist. They define the calendar your postings fall into and they control how you close the year. Without them, posting is not possible.
How to view open and closed accounting periods
Open the accounting periods page from the menu. Each period is set up per month. The page shows your full history of periods, for example starting from 2010 with one period for each month.
You can see which years are closed. In the example, the year 2010 is closed, and the first open year is 2011. If you sort the list descending, you can find your last open year quickly. In this case the last open year is 2019, which tells you the next year to create is 2020.
How to create a new fiscal year in Business Central
To open a new year, go to Process and choose Create Year. Define three things:
- The starting date of the year
- The number of periods
- The period length, which is normally a month
Press OK, and the system creates the new year. In the example, creating year 2020 generates periods running into 2021.
How to close a fiscal year
When you have finished posting for a year, go to Process and choose Close Year. The system suggests closing the periods you created and sets the checkmark for the new fiscal year.
Only close a year when you are sure you are done posting within that year. Closing marks the year as finished, so do it once everything is finalised.
Q&A
Why do I need accounting periods before posting in the G/L ledger?
Accounting periods must be defined before you can post in the general ledger. They set up the calendar your postings belong to and they control how you close the fiscal year.
How do I see which fiscal years are open or closed?
Open the accounting periods page from the menu. Closed years are marked, and you can sort the list descending to quickly find your last open year.
How do I create a new fiscal year?
Go to Process and choose Create Year. Enter the starting date, the number of periods, and the period length, which is normally a month, then press OK. The system creates the new year and its periods.
How do I close a fiscal year?
Go to Process and choose Close Year. The system suggests closing the periods you created and sets the checkmark for the new fiscal year. Only do this when you are sure you have finished all posting within that year.