Recently, members of our Enavate support team — Blake Smith, Marie Gagnon, and Swati Rai — hosted a live #AskEnavate webinar focused on high-priority year-end topics in Business Central:
- Updated 1099 processing
- Year-end closing
- Analyze features in Business Central
Below is a recap capturing the most important questions and answers from the session.
Topic 1: Updated 1099 Processing in Business Central
Q: What’s new with 1099 processing in Business Central?
Version 27 introduced several major improvements:
- Direct IRS e-filing (IRIS integration): No more uploading FHIR files manually (although FHIR is still supported for 2025–2026).
- No more pre-printed forms: Forms can now be generated and managed digitally.
- Emailing 1099s to vendors: You can email substitute copies using custom templates.
- TIN protection: Taxpayer Identification Numbers can be automatically redacted on vendor and company copies.
These changes make 1099 processing more accurate, compliant, and far more efficient.
Q: How do I set up 1099 reporting in BC?
There are a few steps:
- Verify IRS Reporting Period Setup
In version 27, standard forms are enabled by default. You can drill into each form to see minimums, calculations, and rules.
- Assign the appropriate 1099 codes to vendors
On the vendor card, choose the correct Form No. and Form Box (e.g., NEC01).
- Use the new Propagate feature
If vendors were already created but didn’t have 1099 codes assigned, Propagate applies the selected form/box to existing vendor ledger entries — saving a ton of cleanup time.
- Add adjustments
If you migrated to BC mid-year and prior amounts live in your legacy system, you can enter adjustment totals to ensure the correct final amount is reported.
Q: How do I generate 1099 forms for review?
Go to IRS Form Documents → Create Forms, select your year, filter vendors, and BC will pull in qualifying vendor ledger entries.
You can:
- Drill into entries
- Review calculated and adjusted amounts
- Release the form once approved to be printed or emailed
Q: Where is the vendor’s email address stored for emailed 1099s?
On the Vendor Card → Address & Contact section.
Be sure to toggle Email Consent under IRS Information; BC will error if this box isn’t checked.
Q: How do you report the amounts to the IRS?
BC now includes a transmit feature, which is an out-of-the-box integration to the IRIS site, that will only pick up the items that are released.
Q: Do I still need to print and mail 1099s?
No. The old pre-printed forms are no longer required.
BC generates substitute copies with the required IRS information (payer details, recipient details, amounts, and form type). You can print or email these.
Q: Is the TIN redacted?
Yes — BC allows full redaction of the TIN for vendor and company copies, depending on your IRS form setup.
Q: What if my 1099 amounts aren’t accurate? How can I troubleshoot?
A few tips:
- Start early — review vendor ledger entries before year end.
- Export vendor ledger entries and filter by the 1099 Form Box value.
- Confirm:
- Correct vendor setup
- Correct form code
- Whether adjustments are needed
- Use the Propagate feature if ledger entries were posted without 1099 details.
Topic 2: Business Central Year-End Close
Q: What does “closing the fiscal year” mean in Business Central?
Closing the year:
- Moves current-year earnings to the Retained Earnings account
- Marks all prior-year entries as historical
- Generates closing entries (not automatically posted)
- Allows you to allocate earnings across dimensions/divisions before posting
Q: What should I do before closing the year? (best practices)
Always complete these steps first:
- Close all open orders and journals
- Reconcile bank accounts
- Reconcile AR, AP, inventory, and fixed assets
- Run standard financial reports to confirm balances
- Ensure all transactions for the fiscal year are posted
This ensures clean books and a smooth closing process.
Q: What are the main steps to close the year in BC?
There are three primary steps:
Step 1: Close Accounting Periods
Go to Accounting Periods.
- Confirm that next year’s periods are already created (BC requires an open year for day-to-day posting).
- If needed, click Create Year to add the next fiscal year.
- Select the year you’re closing → choose Close Year.
- The system will lock the periods and mark them as closed.
Note: Once closed, accounting periods cannot be reopened.
Step 2: Run the Close Income Statement process
From Chart of Accounts → Close Income Statement:
- BC will automatically populate the latest unclosed fiscal year end date
- Choose the Journal Template and Batch (many companies use a dedicated “Year-End” batch)
- BC creates closing entries to transfer earnings to the Retained Earnings account
These entries are not posted yet, allowing time for adjustments.
Step 3: Review and Post Closing Entries
- Review the generated journal
- Allocate earnings by division or dimension if needed
- Post when ready
This completes the fiscal year.
Q: After closing the fiscal year, can users still post entries to the prior year?
Yes — adjustments can be posted to a closed year. Business Central does not completely block prior-year posting by default. The restriction typically comes from General Ledger Setup, where administrators define posting date ranges.
- To allow prior-year adjustments, update the User Setup page with specific posting date permissions for the user who needs access.
- After any prior-year adjustments, always re-run Close Income Statement so adjustments roll correctly into retained earnings.
Q: How can I identify closing entries in the General Ledger?
Closing entries automatically receive a “C” prefix (e.g., C1235) in the Document No. field.
- “Prior-year entries” will also show an indicator on the entry so you can distinguish them from current-year postings.
Q: Can closing entries appear on the Trial Balance report?
Yes — if your date filter includes the date of the closing entries, they will appear.
- Even though the “C” prefix may drop from the date filter, the entries still populate if the filtered date range includes them.
- Adding the document number column helps identify them easily.
Q: What happens if I forget to run “Close Income Statement” after making a prior-year adjustment?
Your balances won’t match expectations. The retained earnings won’t reflect the adjustment until the process is rerun.
This is one of the most common reasons year-end balances look “off.”
Topic 3: Analyze Feature in Business Central
Q: How does the Analysis Mode feature work?
Analysis Mode lets you transform any list page (e.g., GL entries, customer list, item ledger entries) into a grouped, summarized, pivot-style view — similar to Excel.
Key capabilities include:
- Grouping by fields like vendor, document number, or posting month
- Adding fields from related tables (e.g., GL account name)
- Saving multiple analysis views
- Toggling analysis mode on/off at any time
- Sharing views with colleagues via Copy Link
- Exporting to Excel with all added columns preserved (unlike standard “Open in Excel”)
Q: When should I filter the data before using Analysis Mode?
Always filter if your list includes high-volume tables (e.g., GL entries, item ledger entries).
If the dataset is too large, Business Central will prompt you to apply filters.
Q: How does Copilot help with the Analysis Mode?
By selecting Create new analysis with Copilot, you can describe what you want (e.g., “AP by month grouped by vendor”) and Copilot will build the analysis layout for you.
Have more questions?
If you want help with your specific year-end processes, the Enavate Support Team is here to help.
If you’re an Enavate client, log a support case anytime — we’re happy to walk you through any process.
