Year End Essentials Presented by: Carol Kossoris, CPA, MBA Heartland Business Systems

Agenda General Ledger Payables Management Receivables Management Inventory Control Fixed Assets Analytical Accounting Payroll Year End Summary Q&A

General Ledger

General Ledger Year End Close https://support.microsoft.com/en-us/help/888003/year-end- closing-procedures-for-general-ledger-in-microsoft- dynamics-g When should I run the GL Year End Close? Need a January Balance Sheet or Year end financial reports have been finalized

General Ledger Year End Close What does the Year End Close process do? Moves open transactions to the history table Creates balance brought forward (BBF) journal entries for Balance Sheet accounts and books P&L to Retained Earnings Removes inactive GL accounts without a balance/history-override available The Fiscal Period tables are updated to mark the year closed as a historical year Closes Analytical Accounting Year-end Close Report prints (cannot reprint)

General Ledger Year End Close What does the Year End Close process do? (Cont.) GP 2013 R2 and up will also clear balances in Unit Accounts if marked

General Ledger Year End Close What steps should I take before closing the year? Complete postings in all modules Verify the Posting Type of each account Setup the new fiscal year in Fiscal Periods Make a backup

General Ledger Year End Close Other Points to Remember Have all users out of Dynamics GP when you perform the year-end close process If you have reviewed and posted all your journal entries, click Continue on warning message

General Ledger Year End Close Process

General Ledger Year End Close But I have more entries to make! What do I do now? Allow posting to History in General Ledger setup or Reverse Historical Year

Accounts Payable

Payables Management Year End When should the Year End Close be done? (In theory-not reality) The Calendar Year End Close Routine should be run at the end of the Calendar year prior to posting any transactions in the new year The Fiscal Year End Close Routine should be run at the end of the Fiscal year prior to posting any transactions in the new year

Payables Management Year End What Does the Year-end Close Process do? In the Vendor Yearly Summary Window: Calendar close- transfers the 1099 Amounts from Year to Date Column to Last Year column in the Amounts Since Last Close view Fiscal close – transfers amounts from the Year to Date column to the Last Year column in the Amounts Since Last Close view SmartList and Vendor Summary Reports pull data from the Amounts Since Last Close view as it appears in Purchasing>Cards>Summary Other Views-Calendar/Fiscal

Payables Management Year End What steps should I take to close the year? Post all transactions for the year (let’s talk) Make a backup Close the All, Calendar Year or Fiscal Year using the Payables Year-End Closing window

Payables Management Year End 1099 Processing If a Vendor is not marked as a 1099 vendor at the time a transaction is paid you can use the 1099 Details (Cards) window to update this information, or preferably the Update 1099 Information (Utilities) 1099 payments are date driven for 1099 reporting purposes, not driven by the year end close

Account Receivable

Receivables Management Year End When should the Year End Close be done? (In theory-not reality) The Calendar Year End Close Routine should be run at the end of the Calendar year prior to posting any transactions in the new year The Fiscal Year End Close Routine should be run at the end of the Fiscal year prior to posting any transactions in the new year

Receivables Management Year End What Does the Year-end Close Process do? Calendar close- transfers Finance Charge Amounts from Year to Date Column to Last Year column

Receivables Management Year End What Does the Year-end Close Process do? (cont.) In the Customer Yearly Summary Window: Fiscal close – transfers amounts from the Year to Date column to the Last Year column in the Amounts Since Last Close view SmartList and Customer Summary Reports pull data from the Amounts Since Last Close view as it appears in Customer>Cards>Summary Other Views

Receivables Management Year End What Does the Year- end Close Process do? (cont.) Salesperson Territory

Receivables Management Year End What steps should I take to close the year? Post all transactions for the year (let’s talk) Make a backup Close the All, Calendar Year or Fiscal Year using the Receivables Year-End Closing window

Receivables Management Year End When should the Tax Year End Close be done? (In theory-not reality) At the end of the Calendar year prior to posting any transactions in the new year

Receivables Management Year End What Does the Tax Year- end Close Process do? Updates Tax Detail Maintenance Screen Moves tax amounts to history Tax Period Report for tax filing support

Inventory Control

Inventory Control Year End Closing When should the Year End Close be done? (In theory-not reality) The Year End Close Routine should be run at the end of the year prior to posting any transactions in the new year There is no fiscal/calendar year end close for Inventory

Inventory Control Year End Closing What Does the Year-end Close Process do? Transfers all summarized current-year quantities, costs, and sales amounts to last- year, for the items which you are maintaining 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 window (Cards >> Inventory >> Quantities/Sites) for each site. Gives you options to: Remove discontinued items Remove sold purchase receipts Remove sold lot attributes Update items standard cost

Inventory Control Year End Closing What steps should I take to close the Year? Enter and post all Purchase Order Processing, Invoicing/Sales Order Processing, Project Accounting, Bill of Materials, Field Service and Manufacturing transactions (If you are using these modules in conjunction with Inventory) Post all inventory transactions for the year Reconcile Inventory quantities Complete a physical inventory count and post any adjustments Print additional reports (If not using HITB) Make a backup Close the year (no closing report)

Fixed Assets

Fixed Assets Year End Close When should the Year End Close be done? Fixed Assets Year End Close should be processed after all new assets are entered and all depreciation is calculated through the last day of the fiscal year. Each book can be closed separately, but ALL books must be closed before you can do any processing in Fixed Assets for the new year

Fixed Assets Year End Close What does the Year End Close process do? In the Asset Book Window (Cards >> Fixed Assets >> Book): The YTD Depreciation Amount is cleared 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 In the Asset General Information Window (Cards >> Fixed Assets >> General): The YTD Maintenance amount is cleared from the Expand last Maintenance Date Window The Quantity is copied to the Begin Quantity field in the Expand Quantity Window

Fixed Assets Year End Close What does the Year End Close process do? (continued) In the Book Setup Window (Microsoft Dynamics GP >> Tools >> Setup >> Fixed Assets >> Book): The Current Fiscal Year is increased for each closed book Dynamics GP 2015 have a Fixed Assets Year End report (Status report of all assets affected by the close)

Fixed Assets Year End Close What steps should I take to close the year? Enter all the fixed asset transactions for the current fiscal year Depreciate all assets through the last day of the current fiscal year Run any year-end reports that you want to keep with your financial records Check that the Fixed Assets calendar is built correctly Verify that the quarters are set up correctly for all fiscal years Make a backup Close the year (report in GP2015)

Analytical Accounting

Analytical Accounting Year End When should the year-end close be done? There is no separate year-end close process for AA. It automatically closes along with the GL year-end close, so any steps to check AA data should be done prior to closing the GL year. (Make sure AA is installed and enabled on the workstation where GL is being closed)

Analytical Accounting Year End What does the GL Year End Process do in AA? Automatically moves open year AA data to historical tables (AAG3000x  AAG4000x) Updates AA tables with Balance Brought Forward (BBF) entry to match BBF in GL Any dimensions marked to be included in Year End close will be consolidated and tied to BBF entry

Payroll

US Payroll Year End When should the Payroll Year End Close be done? After the year end service pack is installed (release date typically end of November) After ALL current year pay runs are complete Before processing pay runs in the new year

US Payroll Year End What does the Payroll Year End Close process do? Creates the 'Year End Wage' file containing annual wage information used to generate W2’s, W3’s, 1099's, 1094/1095’s and Magnetic Media for the year being closed.

US Payroll Year End What steps should I take to close the year? Verify that you have installed the year end service pack (The 2018 Year-End Update and 2019 Tax Table Updates will not be available for Microsoft Dynamics GP 2013R2 and prior versions) Complete all pay runs for the current year Complete all month-end, period-end, or quarter-end procedures for the current year Make a backup Close the year Reconcile 941 Verify W-2 and 1099-R statement information

US Payroll Year End What steps should I take to close the year? (Continued) 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.  Install the payroll tax table update (once numbers are verified)

US Payroll Year End Need to make a change?: Edit W-2 Remove year-end, manual check, rerun year end Better method for audit trail of adjustment Must be corrected before Tax Table Updates are completed

Summary of Year End Closing Procedures Close Inventory Management Close Receivables Management Close Payables Management Close Fixed Assets Review Analytical Accounting Settings (If Used) Close General Ledger Note: Payroll has a separate and unrelated year end close to the other modules Please note that the following modules do not have a year- end closing routine: Sales Order Processing Purchase Order Processing Bank Reconciliation

Q&A

Thank You Carol Kossoris, CPA, MBA Heartland Business Systems ckossoris@hbs.net 262-922-1687 @GPUG www.gpug.com info@gpug.com