Sometimes companies are in the need to change the fiscal book year to another start and end date. It is possible to change a fiscal calendar for legal entities in Microsoft Dynamics AX 2012. This post is a walkthrough to guide you through the steps to achieve the desired result.
Let’s directly start with an example of the requirement to change the fiscal year. Suppose the fiscal calendar runs from January to December and this needs to be changed. The new calendar will run from April to March. You might have already posted transactions in your environment for several years. Also, you could have some other companies which also need to get a new pattern. Due to different regulations per country, it might become a bit more complex. Some companies then would need to have the current fiscal year extended to 15 months. Other companies must have the current year to be 12 months and the next year 15 months. Also, others might be in the need of an additional fiscal year of three months. Whatever the regulation is, the best thing to do is per different shift you need to create a new fiscal calendar.
As example the USMF demonstration company will be used. This company has now transactions in the fiscal year 2015 and also new fiscal years for 2016 and 2017 are already created. Use the navigation path General ledger > Setup > Fiscal calendars.
Perform the next steps:
- You can click the button New fiscal calendar to create a new shared calendar with the old years, a shifted year, and new book years starting each year in April.
- Fill the fields on the drop-down dialog with the values for the first year with the original start and end dates for the fiscal year and click Create.
You now have created a new calendar with the first fiscal year. You need to add more years to this calendar.
- Click the button New fiscal year.
- Check the fields. You can also select the field Copy from last fiscal year to have an identical copy of the year 2010. Then click Create.
- Repeat the procedure of creating new fiscal years until you come across the first year which will be different.
- Untick the field Copy from last fiscal year if this was enabled and change the field End of fiscal year to indicate the new end date.
Note that this will result in some periods at the end of the year with the same Month and Quarter values. Eventually, you can change this.
- You can now create more fiscal years starting from April 1 and ending on March 31.
When the fiscal calendar is complete, you have not changed the current settings for the legal entity yet. To do so continue the steps:
- Click General ledger > Setup > Ledger.
- In the Fiscal calendar field, you can select the newly created calendar.
When you save this record, you will get a warning stating you should recalculate ledger periods. This process will replace references to the ledger calendar per accounting entry. Note that when you have a large number of accounting entries for this legal entity, the job might take some time.
- On the Ledger form, you can click the button Recalculate ledger periods.
- Optional: You can enable the Batch processing to have the process run on the batch server. This is recommended for performance reasons. Using the button Recurrence you can choose a start date and time.
- Click OK to start the process directly or create the batch task.
When you start the process on the client you will receive a warning. When you have new or changed closing periods you might need to review the entries.
When the process is executed, the steps are complete. Further steps like recalculate balances is not required.
Technical background recalculate ledger periods
The Recalculate ledger balances process will update the contents of the fields FiscalCalendarPeriod and FiscalCalendarYear in the table GeneralJournalEntry for the records belonging to the current Ledger. Based on the accounting date and old values, new references for the new fiscal calendar will be updated.
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That’s all for now. Till next time!