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Like we are all waiting for the end of a year when the Christmas and New Year spirit is present wherever you go, so is the accounting world anticipating their winter season pastime. In many companies, the financial year matches the calendar year, which makes a year end not only a time of jingle bells and mistletoes but a time of hard work, especially for companies that go through annual consolidation process.
At the end of a reporting period, an accountant of a company must perform the income statement closure procedure. With respect to this need, Microsoft Dynamics NAV provides “two-click” functionality that makes this process quick, accurate and easy. However, do we understand why this procedure is required and what exactly is behind it? Let us examine the logic behind this process.