Microsoft Dynamics GP Year-End Closing Procedure

The year-end close process for Dynamics GP is extremely important for making sure modules are closed and updated to begin processing the upcoming year’s transactions.

There is a specific order in which the modules are required to be closed to ensure that everything that impacts another module has been posted and closed prior to proceeding to the next module.

Follow along with the post below or check out our Dynamics GP 2015 year-end closing playlist!

The closing order is as follows:

  1. Inventory Control
  2. Receivables Management
  3. Payables Management
  4. Fixed Assets Management
  5. General Ledger
  6. Payroll

 
 
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Module 1: Inventory Control

The Inventory Control module should be closed at the end of the fiscal year before any new transactions are posted that would affect inventory quantities.

The year-end close process in Inventory Control does the following:

  • Transfers all current year quantity, cost and sales amounts to last year for the items that have been kept in summarized sales history
  • Updates each item’s beginning quantity from the quantity on hand at each site
  • Zeros the quantity sold field in the item quantities maintenance for each site
  • Allows the option to remove discontinued items, remove sold receipts, remove sold lot attributes and update item’s standard cost

Summary Steps:

  • Post all transactions for the year
  • Reconcile inventory quantities
  • Complete a physical inventory count, and then post any adjustments
  • Print additional reports
  • Perform a backup
  • Close the year
  • Close the fiscal periods for the inventory series (optional)
  • Perform a final backup

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Module 2: Receivables Management

The Receivables Management year-end consists of two different types of closing, Calendar Year and Fiscal Year for those companies where the fiscal year is different than calendar year.  If fiscal year is same as calendar year both closes can be done at the same time.

The Calendar year-end close should be performed at the end of the calendar year prior to posting any transactions in the upcoming calendar year.

The Fiscal year-end should be performed at the end of the fiscal year prior to posting any transactions in the upcoming fiscal year.

Receivables Management is date sensitive, but the following items are updated based on closing of the Receivables Management module:

  • SmartList objects
  • Receivable Management summary reports
  • Amounts since Last Close view in the Customer Summary window

Summary Steps:

  • Post all the sales and receivables transactions for the year
  • Print the aged trial balance report with options
  • Perform a pre-year-end closing backup
  • Close the year
  • Close the fiscal periods (optional)
  • Perform a post year-end closing backup
  • Close the tax year

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Module 3: Payables Management

The Payables Management year-end consists of two different types of closing, Calendar Year and Fiscal Year for those companies where the fiscal year is different than calendar year.  If fiscal year is same as calendar year both closes can be done at the same time.

The Calendar year-end close should be done at the end of the calendar year prior to posting any transaction in the next calendar year.

The Fiscal year-end should be done at the end of the fiscal year prior to posting any transactions in the next fiscal year.

The Calendar year-end close process transfers 1099 amounts from the YTD column to the LY column in the amounts since last close view in the Vendor Yearly Summary window.

The Fiscal year-end close process transfers all other amounts from the YTD column to the LY column in the amounts since last close view.

****If the timing of the close causes the amounts since last close to be incorrect, contact Rand Group support at 866.714.8615 and we can assist you with scripts to help resolve them.

Summary Steps:

  • Post all transactions for the year
  • Print the aged trial balance with options report
  • Print the vendor period analysis report
  • Install the payroll year-end update (optional)
  • Perform a backup, named “Pre-1099 edits”
  • Verify the 1099 information and edit if required
  • Print the 1099 Statements
  • Perform a backup, named “Pre Year-End”
  • Close the year
  • Close the fiscal periods (optional)
  • Close the tax year
  • Make a backup that is named “Post Year-End”

 

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Module 4: Fixed Assets Management

Fixed asset year-end close will do the following:

  • YTD Maintenance amount is cleared from the Expand Last Maintenance Date window
  • Quantity is copied to the Begin Quantity field in the Expand Quantity window
  • YTD Depreciation amount is cleared in the Asset Book window
  • Cost Basis is copied to Begin Year Cost field
  • Life to date depreciation is copied to Begin Reserve field
  • Salvage Value is copied to Begin Salvage field
  • The Current Fiscal year is increased for each closed book

Summary Steps:

  • Perform all year-end closing procedures for Payables Management to guarantee that all outstanding fixed asset transactions are capitalized
  • Enter all fixed asset transactions for the current fiscal year
  • Depreciate all assets through the last day of the current fiscal year
  • Perform the General Ledger posting (GL Interface) process (optional)
  • Run any year-end reports that you want to keep as financial records, recommended reports below:
    • Annual Activity
    • Additions
    • Retirements
    • Transfers
    • Depreciation Ledger
    • Property Ledger
    • Fixed Asset to General Ledger Reconciliation
  • Verify the Fixed Assets calendar is built correctly
  • Verify the quarters are setup correctly for all fiscal years
  • Create a backup, named “Pre Year-End”
  • Perform Fixed Assets year-end closing routine

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    Module 5: General Ledger

    General ledger year-end close should be performed after you have completed the year-end close for all of the other modules.The General ledger year-end close does the following:

    • Closes all profit and loss accounts to retained earnings, leaving the profit and loss accounts with a zero balance at the beginning of the new year
    • All balance sheet accounts are updated with the beginning balance in the new year, which will be the same as the ending balance from the year you are closing
    • Retained earnings accounts are updated with the amount from all profit and loss accounts if you close to one retained earnings account or with the amount from the profit and loss accounts in that division if you close to divisional retained earnings.
    • The year-end close routine moves all open year transactions from the GL20000 (current) to GL30000 (historical) table
    • Balance brought forward journal entries are created in the GL20000 (current)
    • Fiscal period tables are updated to mark the year that you are closing as historical

    Summary Steps:

    • Complete posting procedures and the closing procedures for all other modules
    • Post the final adjusting entries in General ledger
    • Print an account list to verify the posting type of each account is correct
    • Close last period of fiscal year (optional)
    • Perform a backup
    • Print year-end financial statements
    • Setup new fiscal year
    • Close the fiscal year
    • Close all the fiscal periods (optional)

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    Module 6: Payroll

    Payroll close must be performed before any checks for the next year are processed.

    Summary Steps:

    • Verify the latest payroll tax updates for the current year have been installed
    • Complete all pay runs for the current year
    • Complete all month-end, period-end, or quarter-end procedures for the current year
    • Run reconcile
    • Perform a backup of the original file
    • Install the Year-End Update
    • Perform a backup of the new file
    • Verify W-2 and 1099-R statement information
    • Print the W-2 statements and the W-3 transmittal form
    • Print the 1099-R forms and the 1096 transmittal form
    • Create the W-2 electronic file (optional)
    • Archive inactive employee Human Resources information
    • Setup up fiscal periods for the upcoming year
    • Close the fiscal periods for the current year (optional)
    • Install the payroll tax update for upcoming year

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    And that concludes that year-end closing process for Dynamics GP. If you require further support Rand Group can help.
     
     
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August 27, 2015