How to adjust the beginning balance entries after you perform a year-end closing in Microsoft Dynamics GP

INTRODUCTION

This article describes how to adjust the beginning balance entries after you perform a year-end closing in Microsoft Dynamics GP.

More Information

To adjust the beginning balance entries after you perform a year-end closing, you can follow the steps below to key a GL transaction and not keep history on the transaction, but a BBF entry will be created for that amount and carried forward to affect the beginning balance for the open year. To do this, follow these steps:
  1. If you have a backup of the database, restore the database from the backup, and then run the year-end closing process again. For more information, click the following article number to view the article in the Microsoft Knowledge Base:

    888003 Year-end closing procedures for General Ledger in Microsoft Dynamics GP

    If you do not have a backup of the database, go to step 2.
  2. Note Before you follow the instructions in this article, make sure that you have a complete backup copy of the database that you can restore if a problem occurs.

    • In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Financial, and then click Multicurrency. In the Maintain History area, click to clear the General Ledger Account check box.
    Notes
    • If Multicurrency in Microsoft Dynamics GP is not registered, rename the MC40000.* files that are located in the company Finance directory.
    • If you use Microsoft SQL Server, run the following statement against the company database.
      update MC40000 set MNSUMHST=0
    • Point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Financial, and then click General Ledger. In the Maintain History area, click to clear the Accounts check box, and then click to clear the Transactions check box.
  3. In the Allow area, make sure that the Posting to History check box is selected. Click OK to save the changes.

  4. Use the appropriate step:
    •  In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods. Make sure that the fiscal period is open.
  5. Click Transactions, point to Financial, and then click General. Enter the appropriate journal entry. Make sure that the transaction date is in the closed year so that the entry will update the beginning balances. If the balance sheet account should have a debit beginning balance, make an entry that resembles the following entry:
    • The balance sheet account is debited, and the retained earnings account is credited. Enter one transaction for each account that had an incorrect posting type.

  6. Post the transactions. The posting procedure affects only the current year because the Maintain History options are disabled. A beginning balance transaction is posted in the new year. Therefore, the accounts will have the correct balances.

  7. Use the appropriate step:
    • In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Financial, and then click General Ledger. In the Maintain History area, click to select the Accounts check box, and then click to select the Transactions check box.
  8. In the Allow area, make sure that the Posting to History check box is selected. Click OK to save the changes.

  9. Use the appropriate step:
    • In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Financial, and then click Multicurrency. In the Maintain History area, click to select the General Ledger Account check box.
    Notes
    • If Multicurrency is not registered, rename the MC40000.* files back to the original names from which you renamed them in step 2.
    • If you use Microsoft SQL Server, run the following statement against the company database.
      update MC40000 set MNSUMHST=1

    IMPORTANT NOTE: If you reopen the GL year using SQL Scripts (for any GL version) or the Reverse Historical Year option in the GL Year-End Closing window in Microsoft Dynamics GP 2013 or later versions, please note that these BBF entries will be removed. When you reclose the GL year(s), the recalculated BBF's will now be missing this amount because no detailed transaction exists to support it to have it recalculated back in. So be sure to keep good notes of entries you make like this, so you can rekey them in the event you need to reopen/reclose a GL year. 

References

For more information, click the following article number to view the article in the Microsoft Knowledge Base:

864913 How to correct accounts that were set up to use the wrong posting type after you close the year in General Ledger in Microsoft Dynamics GP

Properties

Article ID: 857310 - Last Review: Mar 29, 2016 - Revision: 1

Microsoft Dynamics GP 2015, Microsoft Dynamics GP 2013, Microsoft Dynamics GP 2010, Microsoft Dynamics GP 10.0, Microsoft Dynamics GP 9.0, Microsoft Business Solutions–Great Plains 8.0, Microsoft Business Solutions–Great Plains 7.5, General Ledger

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