Year- End Process Overview for Microsoft Dynamics GP

Today’s Agenda Introductions Module Closing Payroll Inventory Sales Purchasing Fixed Assets Financial (AA & GL)

Module Closing List ModuleCalendarFiscal PayrollX InventoryX PurchasingXX SalesXX Fixed AssetsX Financial (GL & AA)X Why Payroll First? Why Financial Last?

Closing the Payroll Module Who should run this procedure? If you use the Payroll Module When should this be run? After the last payroll of the calendar year has been processed and posted. Before the first payroll of the new calendar year has been processed. Do I need to install the year end update? Are you tracking ACA? Installing the year end update is not anchored to timing and can be done as soon as it is released by Microsoft. (Currently available for 2013/2015) When do I apply the tax table changes? The tax table changes MUST be applied after the last payroll of the old year, and before the new payroll of the new year.

Closing the Payroll Module Enter and Post all current year Payroll Related Transactions Run any Reporting that you need for the current year Create a Pre Closing Backup 2015_UPR_Pre.bak (example) Install Year End Software Update Verify that the 2015 Current Rates are in place Create the Year End Wage File Create Pre W2 Edit Backup 2015_UPR_PreW2.bak Verify W2 Information Edit W2 Information (if needed) Verify 1099R Information Edit 1099R Information (If Needed) Create Post Closing Backup 2015_UPR_Post.bak Apply Tax Table Update

Closing the Payroll Module Steps:CalendarFiscal 1. Verify that you have installed the latest 2015 payroll tax Table updateX 2. Complete all pay runs for the current yearX 3. Complete all month-end, period-end, or quarter-end proceduresX 4. Make a backup of the original fileX 5. Install the Year-End UpdateX 6. Create the Year-End fileX 7. Make a backup of the new fileX 8. Verify W-2 and 1099-R statement informationX 9. Print the W-2 statements and the W-3 Transmittal formX 10. Print the 1099-R forms and the 1096 Transmittal formX 11. (Optional:) Create the W-2 Electronic fileX 12. (Optional:) Archive inactive employee Human Resources informationX 13. Set up fiscal periods for 2016X 14. (Optional:) Close fiscal periods for the payroll series for 2015X 15. Install the payroll tax update for 2016X

Closing the Inventory Module Who should run this procedure? If you use the Inventory Module Use Annual Quantity Summaries Cards/Inventory/History Reports with ‘Year’ Dependencies When should this be run? Inventory is a fiscal year closing After all fiscal year transactions have been posted Before new fiscal year transactions are posted Why should this be run? Updates Yearly Quantity Summaries Zeroes out beginning year amounts Update beginning year quantities What Options do I have? Remove Discontinued Items Remove Sold Lot Attributes Remove Sold Receipts/Cost Change History Update Item’s Standard Cost

Closing the Inventory Module Before you Start Enter and Post all current year Inventory Related Transactions SOP/POP/Inventory Create a Pre Closing Backup 2015_INV_Pre.bak (example) Reconcile SOP POP Inventory Physical Inventory/Stock Count Post Inventory Adjustments Print/Save Year End Reports ReportPath Stock Status ReportInventory >> Reports >> Activity Purchase Receipts ReportInventory >> Reports >> Activity Turnover ReportInventory >> Reports >> Analysis Transaction History ReportInventory >> Reports >> History Serial Number ListInventory >> Reports >> Serial/Lots Lot Number ListInventory >> Reports >> Serial/Lots

Closing the Inventory Module Make Another Backup 2015_INV_MID.bkf Run the “Year-End Close” procedure Inventory/Routines/Year-End Close Close the Inventory Fiscal Year Make Another Backup 2015_INV_FINAL.bak

Closing the Inventory Module Steps:CalendarFiscal 1. Post all transactions for the year.X 2. Reconcile inventory quantities.X 3. Complete a physical inventory count, and then post any adjustments.X 4. Print additional reports.X 5. Make a backup.X 6. Close the year.X 7. Close the fiscal periods for the Inventory series (optional).X 8. Make a final backup.X

Closing the Sales Module Who should run this procedure? Use SmartList objects for Sales/Receivables Management Use Receivables Management summary reports Use Customer Summary window When should this be run? Actual Date of Closing Type (Fiscal or Calendar) After all year transactions have been posted Before new year transactions are posted What Options do I have? Closing is Optional Print Closing Report Close Calendar Only Close Fiscal Only Close Both at once!

Closing the Sales Module Before you Start Enter and Post all current year Sales Related Transactions Complete normal Month/Year End Closing Process Create a Pre Closing Backup 2015_SALES_Pre.bak (example) Run the “Year-End Close” procedure Sales/Routine/Year-End Close Close the Sales Calendar/Fiscal Year Close Sales in Fiscal Year Setup Make Another Backup 2015_SALES_FINAL.bak

Closing the Sales Module Steps:CalendarFiscal 1. Post all the sales and receivables transactions for the year.XX 2. Make a pre-year-end closing backup.XX 3. Close the year.XX 4. Close the fiscal periods. (This step is optional.)XX 5. Close the tax year. (Only if Payables is closed)X 6. Make a post-year-end closing backup.XX

Closing the Purchasing Module Who should run this procedure? Use SmartList objects for Purchasing/Payables Management Use Payables Management summary reports Use Vendor Yearly Summary window Use ‘Amount Since Last Close’ View What Options do I have? Closing is Optional Print Closing Report Close Calendar Only Close Fiscal Only Close Both at once! When should this be run? Actual Date of Closing Type (Fiscal or Calendar) After all year transactions have been posted Before new year transactions are posted

Closing the Purchasing Module Enter and Post all current year Payables Related Transactions Complete normal Month/Year End Closing Process Print the Aged Trial Balance with Options report. Print the Vendor Period Analysis Report Install Year End Software Update** Create a Pre 1099 Edit Backup 2015_1099_Pre.bak (example) Verify 1099 Information Edit (if Needed) 1099 Data Print 1099’s Make Another Backup 2015_PURCH_PRE.bak Run the “Year-End Close” procedure Purchasing/Routines/Year-End Close Close Purchasing in the Fiscal Year Setup Close the Tax Year (Only if Sales is closed) Make Another Backup 2015_PURCH_FINAL.bak

Closing the Purchasing Module Steps:CalendarFiscal 1. Post all transactions for the year.XX 2. Print the Aged Trial Balance with Options report.X 3. Print the Vendor Period Analysis Report.X 4. Install the Payroll year-end update (optional)X 5. Make a backup that is named "Pre-1099 Edits."X 6. Verify the 1099 information and edit it if it is required.X 7. Print the 1099 statements.X 8. Make a backup that is named "Pre Year-End."XX 9. Close the year.XX 10. Close the fiscal periods.XX 11. Close the tax year. (Only if Sales is Closed)X 12. Make a backup that is named "Post Year-End."XX

Closing the Fixed Assets Module Who should run this procedure? Users of Fixed Assets When should this be run? After Purchasing is closed formally After all year transactions have been posted After all assets are depreciated to the last day of the fiscal year you are closing (don’t forget GL Posting!) Print any needed Year End Reports Annual Activity Additions Retirements Transfers Depreciation Ledger Property Ledger Fixed Assets to General Ledger Reconciliation Book to Book Reconciliation Book to Book YTD Depreciation Comparison

Closing the Fixed Assets Module Verify Fixed Asset Calendars is setup Verify Fixed Asset Quarters are setup Create a Pre Closing Backup 2015_FIXA_Pre.bak (example) Run the “Year-End Close” procedure Financial/Routines/Fixes Assets/Year End Make Another Backup 2015_FIXA_FINAL.bak

Closing the Fixed Assets Module Steps:CalendarFiscal 1. Perform all the year-end closing procedures for Payables ManagementX 2. Enter all the fixed asset transactions for the current fiscal yearX 3. Depreciate all assets through the last day of the current fiscal yearX 4. Perform the GL Posting (GL Interface) process (This is optional.)X 5. Run any year-end reports that you want to keep as part of the year-end recordsX 6. Guarantee that the Fixed Assets calendar is built correctly (This is optional.)X 7. Verify that the quarters are set up correctly for all the fiscal yearsX 8. Create a backupX 9. Perform the fixed assets year-end closing routineX

Closing the Financial Module Who should run this procedure? Companies that are ready to close the accounting year and mark it as historical When should this be run? When all other modules are formally closed After all year transactions have been posted AA users should validate AA Account setup What happens when I close the year? P&L Accounts close to Retained Earnings Balance Sheet Accounts update Open Year Data is moved to History Analytical Accounting Balances are processed at this time as well if you have the AA dimensions setup to have a BBF entry created

Closing the Financial Module Print an Account List & verify account types Don’t forget Unit Accounts! Verify General Ledger Setup Window settings are correct Print Final Reports Trial Balance Financial Statements Setup the new Fiscal Year Create a Pre Closing Backup 2015_GL_Pre.bak (example) Run the “Year-End Close” procedure Financial/Routines/Financial/Year-End Closing Make Another Backup 2015_GL_FINAL.bak Unit Account Balances

Closing the Financial Module Steps:CalendarFiscal 1. Complete the posting & the closing procedures for other modules.X 2. Post the final adjusting entries in General Ledger.X 3. Print an account list to verify the posting type of each account.X 4. Close the last period of the fiscal year.X 5. Verify the settings in the General Ledger Setup window.X 6. Make a backup.X 7. Print a final Detailed Trial Balance report.X 8. Print the year-end financial statements.X 9. Set up a new fiscal year.X 10. Close the fiscal year.X 11. Close all the fiscal periods for all the series.X

Year End Update Information 1. No W-2 or W-3 Form changes 2. EFW2 changes (Electronic Filing) 3. Product Quality Fixes around Payroll Year-End 4. Affordable Care Act, click HERE for a list of changesHERE DIV- form and application changes INT - form and application changes MISC - form and application changes 8. Payables 1096 form change 9. Fixed Asset Luxury Auto Depreciation changes

Resources InterDyn Artis Support Team Contact us if you need any year end support, including installing the year end update Year End Blog Microsoft Dynamics GP Knowledge Base Article