Close a fiscal year


Updated: November 1, 2016

Applies To: Dynamics Marketing


Microsoft Dynamics Marketing is scheduled to be retired on May 15, 2018. After that date the service will no longer be available. Please plan accordingly. For details, see the customer FAQ. You can also read the blog post Microsoft Dynamics Marketing service will be discontinued, and learn what’s coming next.

Microsoft Dynamics Marketing users with View/Edit Accounting Manager privileges can set the closing date for the fiscal year.

There are two closing methods:

  • Hard Close: Once the closing date and the “Locked" check box have been set, users will not beable to enter or edit transactions that occur prior to the closing date.

  • Soft Close: When the closing date has been set but the 'Locked" check box isn't checked, users are still able to enter or edit transactions that occur prior to the closing date. Transactions that occur prior to the closing date are called prior period transactions.

All transactions that are shown in the general ledger are subject to prior period closing restrictions. The dates subject to prior period transaction rules are expense item dates, media expense item dates, payment dates, and journal entry dates.

  1. Go to Budgeting > Reconciliation > Closing.

  2. Enter the closing date.

  3. Check the "locked" check box if you do not want users to be able to enter prior period transactions.

  4. Choose Submit.


Leave the locked check box unchecked to allow users to enter prior period transactions. Prior period transactions are logged.

  1. To update the closing date, enter the new date and choose submit. The new date must be a date after the current closing date.

  2. Prior period transactions can be displayed on the Prior Period Transaction Log page.

Microsoft Dynamics Marketing makes it easy to accrue expenses via its item-level accrual feature. Each item on a PO or Media Order has an accrual date. For Media expenses, item-level accruing automatically sets the accrual date to the media start date.  In daily operations this streamlines processing and saves time. The year-end closing process typically includes the review of open Purchase Orders and the creation of accrual entries to account for goods and services received but for which vendor invoices are yet to be received. Upon receipt of vendor invoices and their payment in the subsequent period, the accrual dates must be changed to dates in the current fiscal period to permit the expense transaction to be saved. (Once the books are closed, prior period accruals are not possible.) When all accrued expenses have been paid, the remaining balance in the account is cleared appropriately. This process is effective but can be very time-consuming when large numbers of transactions with complex posting are involved.

An alternative approach that can streamline processing is available. Create a deferred expense account of the AR Type. Fill and close all the open POs but update their default AR account to the new one created to track deferred expenses. The expenses that are created will be posted into the prior fiscal year.  Upon receipt of the vendor invoices, review the expenses. If any of the vendor invoices do not match the expenses, adjust them by adding additional items - you will not be able to change the existing ones because they are locked since they are in the prior period. When the invoices are paid, the balance in the Deferred Expenses AR account will clear automatically without requiring adjusting journal entries. When all accrued expenses have been paid, the remaining balance in the account can be cleared appropriately.

Financial and general ledger accounts are designed for marketing budget management only. Financial features are restricted to the limits stated in the Security and Financial Disclaimer. Microsoft Dynamics Marketing is not designed to comply with country/region-specific laws, regulations, or common business practices.