Year-end close validation

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This article explains how to validate the general ledger year-end close process.

The Year-end close validation feature helps improve accuracy and performance during the year-end close process. Here are some of the issues that it detects:

• Highly variable dimensions that can slow performance if more than one million unique ledger combinations are identified
• Out-of-balance entries that are caused by settled ledger transactions
• Overflow amounts that exceed 16 digits
• Additional checks for partial ledger settlements were added in Microsoft Dynamics 365 Finance version 10.0.45

For each issue, the feature provides guidance that can help optimize performance. It might also recommend that you enable specific features or run a consistency check to fix errors.

To run year-end close validation, go to General ledger /> Period close /> Year end close, and select Validate year-end close.

Validate year-end close errors

Highly variable dimensions

If the year-end close validation logic detects any highly variable dimensions that affect the close process, the following message is shown:

Over one million unique ledger dimension combinations have been identified and could affect year-end close performance. Refer to official documentation for guidance. To prevent performance issues, avoid using Close all for highly variable dimensions. Select Close single.

Out-of-balance entries

The year-end close validation logic detects out-of-balance issues by using the enabled awareness between ledger settlement and the year-end close feature. The opening balance excludes only settled ledger transactions from the fiscal year that is being closed. These excluded transactions can cause debits and credits to be out of balance. If the logic detects any out-of-balance issues, the following message is shown:

There are out-of-balance vouchers that result in an out-of-balance error during the year-end close process. You can run a consistency check and use the 'Fix error' option to resolve the issue.

Transaction overflow

If the year-end close validation logic detects any transactions that have overflow amounts, the following error message is shown:

Transactions have overflow amounts with 16 digits or more including decimal places, which may cause an out-of-balance error during the year-end close process. To address this, enable Optimize year-end close and reverse the original documents causing overflows, or manually adjust the balances.