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  • 1.  Closing Entries Mid Year

    TOP CONTRIBUTOR
    Posted Sep 16, 2021 11:11 AM
    Hello,

    We are using NAV 2015.

    Our company was sold effective close of business on August 31, 2021 as a stock transaction.  As a result, our company will continue business as usual.  This is great news, but I need help on the NAV entries we need to post to get to an opening balance sheet.

    We have been asked to make several entries for purchase accounting purposes.  I would like to maintain our balance sheet as of 08/31/21 for closing purposes, but the entries we have been asked to make need to be reflected before business was conducted on 09/01/21.  Therefore, our new company would like us to be able to run the balance sheet to show our opening balance sheet numbers.  I am not sure if this is systemically possible.  Or, if we will need to maintain the balance sheet for the previous owners in excel.

    We also need to close the income statement as of 08/31/21.

    Questions:
    Can I run the close income statement job as of 08/31/21 without closing the periods?
    Can I run the close income statement job again at 12/31/21?
    Can I post our purchase accounting entries through the closing entry I post as of 08/31/21?

    Or if anyone has ideas on how to do this I would greatly appreciate the recomendations.

    Thank you,
    Kristina Frank

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    Kristina Frank
    Controller
    Cline Tool & Services
    Newton IA
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  • 2.  RE: Closing Entries Mid Year

    NAVUG ALL STAR
    Posted Sep 17, 2021 09:39 AM
    Kristina,

    To answer your questions the Close Income Statement uses the Accounting Period New Year flag to determine the Year its closing so this is not possible in its current state. However, here is my suggestion:

    1. First I would setup the Short-Year for Accounting. Open Accounting Periods and highlight the this Calendar year including January (see image). Then DELETE these records. This will remove the current Accounting Period year. Now Create New Year being a short-year thru 8/31/21.

    2. Now you have an Accounting Period to match the new Fiscal Year and can Close Income Statement. You can then create the NEW Fiscal Year either another short period 9/1/21 - 12/31/21 or different Fiscal Year all together.
    3. As for booking the Purchase Accounting Entries as of 9/1/21, I would post them on 9/1/21 the adjustment with a specific Document No. and reference (Ext. Doc. No.).

    You now have your 8/31/21 numbers and then a new Fiscal Year with the Purchase Accounting Entries hitting the Balance Sheet and then new operation postings.

    Hope this helps.
    Thanks,
    Steve

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    Steven Chinsky
    Manager
    Wipfli
    Mansfield MA
    NAVUG/BC Programming Committee Member
    NAVUG All-Star, Granite Award Recipient, MCP, DCMP
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