Year-End Close Process for Microsoft Dynamics GP
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The document outlines the year-end close process for Dynamics GP, emphasizing the importance of completing close processes before the new reporting period begins. It provides a detailed sequence for closing sub-ledgers (inventory, receivables, payables, fixed assets, analytical accounting, and payroll) and highlights necessary pre-closing tasks and post-closing actions for each area. The procedure aims to ensure accuracy and compliance while preparing for the new fiscal year.
Year-End Close Process for Microsoft Dynamics GP
- 1. trinsoft.comtrinsoft.com Year-End Close Process for GP Bryan Smith
- 2. trinsoft.com Overview • The best practice is to complete close processes prior to starting the next reporting period • The processes are usually located under the “Routines” menu group in each functional area • Always make a backup (or verify the backups with your IT department) prior to closing and immediately after closing • If you need assistance with any of these steps, please let us know. Microsoft also has good documentation on all of these processes.
- 3. trinsoft.com Dynamics GP • Must close all sub-ledgers prior to closing General Ledger (In following order) – Inventory – Receivables – Payables – Fixed Assets – Analytical Accounting (if on an older version - GP 10.0 SP2 and before) – Payroll
- 4. trinsoft.com Inventory • The close transfers all summarized current-year quantity (cost and sales amounts) to history for items for which you have been keeping a summarized Sales History. The Quantity Sold field for each item is set to zero. The close also updates the amount in each item's Beginning Quantity field to the Quantity on Hand field at each site. • It optionally cleans up discontinued items and lot attributes for items that have been completely sold. • Must be done before any Transactions in the new year have been posted • Year-End Close is Optional for this module • Before closing the year in Inventory, be sure that all Invoicing, Sales Order Processing and Inventory transactions for the current year have been posted. • No Year-End Closing Report • Close the Fiscal Periods for Inventory to ensure transactions are not posted to prior periods
- 5. trinsoft.com Receivables • Items Updated by Close – Smartlist Objects – Summary Reports – Amounts Since Last Close View • Recommended to close year before posting transactions in the new year (Not Possible all the time) • Be sure you have posted all sales and receivables transactions for the current year • Be sure your customer trial balance reconciles • Once Closed also close the Fiscal Periods for Sales to ensure transactions are not posted to prior periods
- 6. trinsoft.com Payables • Similar to Receivables – Amounts Since Last Close – Smartlist Objects – Vendor Summary Reports • Recommended to close prior to entering transactions (Not always possible) • Be sure to post all transactions for the current year before you close. • Be sure your vendor trial balance reconciles • Once Closed also close the Fiscal Periods for Purchasing to ensure transactions are not posted to prior periods
- 7. trinsoft.com Payables – 1099s • 1099s can be printed manually or filed through Greenshades • Be sure vendor setup is done correctly prior to first invoice/check (Always get a W-9) • You can manually edit 1099 amounts if needed (Purchasing->Cards->1099 Details) • Print option is under Routines
- 8. trinsoft.com Fixed Assets • Must Close Payables First • Post any additions, changes, transfers, retirements and all depreciation for the current year • Complete any GL Posting prior to closing • Run Year End Reports prior to closing and be sure they reconcile to GL
- 9. trinsoft.com Analytical Accounting • There is no separate Year-End Process for AA for versions later than GP 10 SP 2 • The first time you close GL on a version higher than GP 10.0 SP2 or higher, you will be prompted to move AA data to history before the system will allow you to close the year. • If this is your first time closing with AA, verify the settings in the AA Options window.
- 10. trinsoft.com Payroll • Payroll Update needs to be run before running first payroll of the new year – This can be done prior to closing General Ledger – Similar to applying a service pack – Close will create a Year-End File. This is used to create W-2’s. These can be run manually or filed through Greenshades • Allow extra time to test first payroll of year
- 11. trinsoft.com Payroll – W2s • Be sure you have installed the latest 2016 Payroll Tax Update • Complete all pay runs and postings for the current year • Complete all month, period and quarter-end procedures for the current year • Install the Year-End Update • Create and Verify the Year-End file • Install any Payroll Tax updates for 2017 • Close fiscal periods for the payroll series
- 12. trinsoft.com General Ledger • Close Process rolls Balance Sheet balances forward and moves Income Statement to Retained Earnings • Make sure accounts are setup correctly prior to running • Be sure to verify the settings in the GL Setup window • Be careful of deleting inactive accounts if the client uses Payroll • Make sure to save the year-end close report • Close the Fiscal Periods to ensure transactions are not posted to prior periods
- 13. trinsoft.com Questions Bryan Smith bsmith@trinsoft.com 859.252.6225 X1005 Tara Cox tcox@trinsoft.com 859.252.6225 X1017