Presented By: Zubin Gidwani Founder, Dynamic Budgets Presented By: Zubin Gidwani Founder, Dynamic Budgets Content Provided by: Zubin Gidwani, Dynamic Budgets Mike McDowell, GPUG Board Gianmarco Salzano, Reporting Central Regional Chapters

Who is Zubin? – Former GP customer/end user Assistant Controller & Financial Systems Manager for public Company Maui Land & Pineapple Company – Tired of banging head into desk trying to manually manage 600+ department budgets, prototyped a solution after Microsoft announced the end of Forecaster, launched Dynamic Budgets in – Active w/ GPUG since inception (2007) – Former member of the GPUG Board of Advisors – Content Steering Committee for Microsoft Convergence and GPUG Summit – Inaugural GPUG ‘All-Star Award’ recipient (Nov 2011) – Implemented GP for GPUG, consulted on their website, developed Share My Code – Microsoft Certified Professional 2004 – Dynamics World - Top 50 Add On Products 2013

Regional Chapters Troubleshooting the Finance Module  Agenda: Typical Reconciliation Problems Year End Preparation Protecting your Budgets 1099 Filing/Reporting Vendor Creation & TIN Matching

Regional Chapters Typical Reconciliation Errors  Distribution Errors – Do not change control account for distribution types of Pay, Cash etc.  Date Issues – Do not change date on financial batch.  Journal Entries – Do not do Journal entries to control accounts. Only to correct distribution errors.  Setup Issues – Make sure correct control accounts on Customers, Vendors and Items. Make sure keep history checked on item cards.  Posting Issues – Watch for stuck transactions. Make sure inventory batch “Post To GL” always checked.

Regional Chapters Un-Posted Transactions Microsoft Dynamics GP>Tools>Routines>Master Posting

Regional Chapters Not in General Ledger Microsoft Dynamics GP>SmartList>Financial>Acct Trans

Regional Chapters GL Distribution Errors Transaction>Payables>Payable Transaction Entry

Regional Chapters GL and Sub-Ledger in Different Periods Microsoft Dynamics GP>Tools>Setup>Posting>Posting

Regional Chapters Journal Entry to Control Account Inquiry>Financials>Journal Entry Inquiry

Regional Chapters Inventory Post to GL Box Not Checked Transaction>Inventory>Batches

Regional Chapters Accrued Purchases - Invoice Matching Transaction>Payable>Enter Match Invoices

Regional Chapters System Settings which lead to Reconciliation Problems

Regional Chapters USER SECURITY SET TO POWERUSER The listed individuals have Poweruser authority. The number of Powerusers must be controlled. Review user security (Microsoft Dynamics GP > Tools > Setup > System > Security Roles) to ensure that the proper individuals have Poweruser authority. Microsoft Dynamics GP > Tools > Setup > System > Security Role

Regional Chapters FUTURE FISCAL PERIODS OPEN Fiscal periods are open for transaction posting beyond the current period. This opens the possibility of erroneous date entries posting to future periods and causing reconciliation issues. Microsoft Dynamics GP > Tools > Setup > Company > Fiscal Periods

Regional Chapters POSTING NOT SET TO CREATE JOURNAL ENTRY PER TRANSACTION Transactions posted from sub-ledgers should be posted to the General Ledger on a Transaction basis (Create a Journal Entry by Transaction). Posting by batch represents a reconciliation nightmare. Posting by batch will create only one summarized entry to the General Ledger per batch. Before the advent of SQL servers this was a useful option. It should not be used. Microsoft Dynamics GP > Tools > Setup > Posting > Posting

Regional Chapters ACCOUNT MAINTENANCE ALLOWS ACCOUNT ENTRY ON CONTROL ACCOUNT Journal entries should not be made to control accounts such as Cash, Accounts Payable, Accounts Receivable, Accrued Purchases or Inventory. An effective way to ensure this does not happen is to un- check “Allow Account Entry” on the Customer Maintenance screen for all of your control accounts. In the event a Journal Entry is required it can be turned back on briefly. Cards > Financial > Account Maintenance

Regional Chapters ACCOUNT POSTING LEVEL SET TO SUMMARY Level of posting should always be set to “Detail” not “Summary”. Transactions posted from sub-ledgers should be posted to the General Ledger on a Transaction basis. Posting on a Summarized basis represents a reconciliation nightmare. Posting by Summary will create only one summarized entry to the General Ledger per batch. Before the advent of SQL servers this was a useful option. It should not be used. Cards > Financial > Account Maintenance

Regional Chapters MAINTAIN ACCOUNT HISTORY NOT CHECKED Maintain Account history should always be checked. If one desires detailed account history this should always be checked, Otherwise only Summary history is available. Microsoft Dynamics GP > Tools > Setup > Financial > General Ledger

Regional Chapters RETAINED EARNINGS CATEGORY NOT SET TO 27 Microsoft Dynamics GP assumes that the Retained Earnings Category is number 27. If you re-number your categories do not change Retained Earnings from number 27. Microsoft Dynamics GP > Tools > Setup > Financial > Category

Regional Chapters CHECKBOOK ALLOWS DUPLICATE CHECK NUMBERS Duplicate check numbers should be set to off. If a check run mistake is made where a re-printing is required with duplicate check numbers then this can be turned on briefly. Cards > Financial > Checkbook

Regional Chapters CUSTOMER ACCOUNTS RECEIVABLE CONTROL ACCOUNT EMPTY The Accounts Receivable Account should be entered for Customers. In the event an account becomes damaged or missing it should be replaced right away. Cards > Sales > Customer > Account

Regional Chapters MAINTENANCE CUSTOMER MISSING SALESPERSON The Customer default Salesperson is missing. If one does not use this functionality they may disable this error message. Cards > Sales > Customer > Account

Regional Chapters MAINTENANCE CUSTOMER MISSING TAX SCHEDULE The Customer Tax Schedule is missing. This can force manual entries of the tax schedule id which could lead to errors. If one does not pay tax they can enter a “Not Applicable” tax schedule or disable this error message. Cards > Sales > Customer

Regional Chapters VENDOR 1099 BOX CHECKED WITH NO TAX ID The Vendor is defined as a 1099 Vendor yet has no Tax ID Number. This will result in compliance issues with the IRS. Cards > Purchasing > Vendor > Options

Regional Chapters ROUTING 1099 AMOUNTS AT TRANSACTION ENTRY By default the 1099 amount box is populated with the amount entered into the Purchases box. If you have a non-taxable amount paid to a vendor (reimbursement, etc.) you can override the 1099 amount to exclude a payment or portion of a payment, to prevent over-reporting.

Regional Chapters INTERRUPTED BATCH Occasionally, posting transactions may get interrupted. You can free them using Batch Recovery. Alternatively they are in the SY00500 table. Contact your Microsoft Dynamics GP reseller for guidance. Microsoft Dynamics GP > Tools > Routines > Batch Recovery

Regional Chapters STUCK PROCESS If all users are out of the system and there are entries in the DYNAMICS.SY00800 table then they should be removed. Contact your Microsoft Dynamics GP reseller for guidance. Microsoft SQL Server > Databases > DYNAMICS > SY00800

Regional Chapters Numbers don’t match. Now you have to manually “tick & tie” your way out of this situation. Reconciling – The Old Way

Regional Chapters Reconciling in GP 2010 GP 2010 offers reconciliation utilties for A/P, A/R GP12 should be* introducing reconciliation utilities for Inventory and Bank Transactions This identifies matched, potentially matched and unmatched transactions, but provides no further details

Regional Chapters There are third party utilities to go further With the push of a button offending transactions are: found in seconds grouped by error code easily analyzed quickly fixed Areas of Coverage: Cash Account Payable Accounts Receivable Inventory Accrued Purchases Sales Cost of Sales PayPal

Regional Chapters Year End Preparation

Regional Chapters Year End Preparation Run File Maintenance Routines (Check links if you have particular known issues…) Create Smartlists to verify all accounts in BS range are flagged as BS, and that all accounts in P&L range are flagged P&L. If your natural class objects (assume segment 1) for the BS end at Segment and Posting type not equal to Profit and Loss Create a smartlist reminder to proactively correct account classifications throughout the year

Regional Chapters Opportunities available during Year End routines: Financial - Delete unused GL segments Inventory - Remove discontinued Items - Update Items’ Standard Cost

Regional Chapters Adjusting FRx Year Change How do you generate Balance Sheets prior to closing the prior year? (Audience Poll) 1.Inform your staff that Financials will be complete once the auditors have left and we close the prior year 2.Worksheet it 3.Adjust your Report Templates

Regional Chapters Adjusting FRx Year Change BS - Force 12/31 to be your beginning balance

Regional Chapters FRx – Applying Effective Dates Create Year based versions of your column layouts

Regional Chapters FRx – Applying & Define Effective Dates

Regional Chapters Protecting your Budgets

Regional Chapters Protecting your Budgets

Regional Chapters Protecting your Budgets

Regional Chapters If GP Locks up during Budget Creation Check to make sure a Save As window isn’t sitting in the background, Go to Show Desktop and then click on the GP Icon in the system tray

Regional Chapters Don’t accidentally Delete your Budget Beware of the Power of the Budget Maintenance Window, this should be restricted to Admins and Budget Admins ONLY! The Delete Button Deletes the entire Budget

Regional Chapters Professional Services Tool Library This collection of tools is now available for free from Microsoft

Regional Chapters GL Tips & Month End/Year End >> Microsoft Dynamics Great Plains Professional Services Tool Library

Regional Chapters GL Tips & Month End/Year End >> Corporate Renaissance Group's Changer

Regional Chapters GL Tips & Month End/Year End Vendor Creation & TIN Matching

Regional Chapters In regards to changes in reporting responsibilities: It is our understanding* that section 6041 of the Housing and Economic Recovery Act of 2008 precludes Payor entities from having to file 1099 Misc Information Reports for transactions which would otherwise be reported by Payment Settlement Entities per section 6050W. *Please seek final consultation from your tax professionals. (except for federal, state and large local governments to report all payments through any payment method) Housing and Economic Recovery Act of 2008

Regional Chapters 1099 Vendor Best Practices Vendor Maintenance:  Perform Tin Matching as part of the New vendor creation process  “Offer” to withhold payment until correct information is submitted and validated  Near final bulk TIN match in December – Double Check record validity – Validate EIN vs. SSN number format – Review for appropriate box types (rent, medical) – Reminder: Box 14 Gross Proceeds paid to an attorney is for legal settlements only. Legal Services are recorded under Box 7 non-employee compensation

Regional Chapters Why TIN Match  Requirement for Payer To Secure a TIN Initial solicitation - for all payees, you must make the initial solicitation when the payee opens an account or when the transaction occurs using Form W-9 to request the taxpayer identification number.  The CP2100 or CP2100A Notice CP2100 and CP2100A notices are notices that inform a payer that he or she may be responsible for backup withholding. This may be due to missing or potentially incorrect taxpayer identification numbers identified during the processing of Form 1099 information returns. It is accompanied by a listing of missing, incorrect, and/or not currently issued payee TIN. Large volume filers (250 or more erroneous documents) receive the CP2100 notice, while all other filers receive the CP2100A notice.  Payers face potential fines of $50 per each 1099 filing with a missing or invalid TIN  "B" Notice If the IRS sends you a "B" notice indicating an incorrect payee TIN, you are required to backup withhold28% from a payee no later than 30 days after receipt. Backup withholding until the payee furnishes a TIN and certifies that it is correct.

Regional Chapters IRS TIN Matching  Various 3 rd parties will submit on your behalf (~$135 for up to 100,000 records)  Free through IRS e-services – Program Summary >> – TIN Matching tutorial >> htm  Required IRS e-services Registration Information – Legal name (verified with IRS & SSA records) – Social Security Number (verified with SSA records) – Date of birth (verified with SSA records) – Telephone number, address – Adjusted Gross Income (AGI) from either your current year or prior year filed tax return (verified from IRS records) – Home mailing address (verified from IRS records). If you have moved since you last transacted with the IRS, please update your information when registering.

Regional Chapters The Validator1099 by Reporting Central Automatically perform a three way comparison between GP vendor data and current government/IRS data. Automatically identify whether or not vendors provided TIN’s or Name, matches the IRS Records. Catch the issues early and minimize, if not eliminate, your risk in reporting bad information to the government. Dynamics GP Third Party Product for in-line TIN Matching and Process Management

Regional Chapters Questions? Zubin Gidwani Dynamic Budgets