1. Amy Walsh Senior Consultant November 11, 2014 Year End Close

2.  What is the difference between Month-End and Year-End Close.  What order should the GP Modules be closed  What pre-close tasks should be completed before closing the year

3. What is the difference between Month-End and Year-End Close?  Month-End close is considered a soft close. The accounting processes/tasks are similar in effect. For example, in Accounts Payable at month end you would tie the Payables Management sub-module to the General Ledger AP account(s). As well as, close the fiscal period, which can be re-opened and transactions can be posted to past periods in the current year.

4. What is the difference between Month-End and Year-End Close?  Year-End close is more Permanent in nature. Keep in mind that Dynamics GP is a date sensitive application. By closing the year you are performing application processes that relate to moving data from the current year tables to historical tables. As well as, depending on the module certain clean up processes.

5. What order should the GP Modules be closed

6. Dynamics GP Year End Close  Before running any Dynamics GP Routine, Utility or Year-End Close process…What should you do???

7. Dynamics GP Year End Close Make a Backup!!!

8. When should tasks be done and Dynamics GP processes run?  The general accounting tasks can be done as month end close items and users can be in the system.  Any Dynamics GP closing utilities and/or routines processes are done when everyone is out of the system. (e.g. Nights or Weekends)  Also for companies with large amounts of data it is recommended to run Year End Utilities and/or Routines in a Test database before running in Production.  This tip pertains to all modules: 2015 Transactions can be added to 2015 batches, however, it is recommended not post the batch until 2014 is closed.

9. Sales Order Processing  Review Back Orders  Release filled back orders  Invoice all shipped orders  Post all 2014 shipped orders  Print Reports  Optional: Reconcile Sales Documents  Optional: Remove Completed Sales Documents

10. Sales Order Processing  What is Reconcile Sales Documents?  (Microsoft Dynamics GP>>Tools>>Utilities>>Sales>>Reconcile>>Remove Sales Documents)  This Routine verifies and recalculates quantities and totals on Sales Documents.  Tasks Performed with Reconcile Sales Documents: Sum the extended prices to verify that subtotal is correct Verifies remaining quantities Verifies the batch controls for batches (if selected in Posting Setup) Verifies the remaining subtotal figure on Sales Document Detail entry. Verifies fulfilled quantities for serial and lot numbered items (quantity fulfilled = number of serial/lot numbers entered). Verifies quantities on quotes, order, invoices, and back orders. Verifies quantities on returns (quantity returned = qty on hand + qty in use + qty in service + qty returned + qty damaged).

11. Sales Order Processing  What is Remove Completed Sales Documents?  (Microsoft Dynamics GP>>Tools>>Utilities>>Sales>>Reconcile>>Remove Sales Documents)  The following documents are removed from the work file and moved to history (if keeping history) during the transfer process: Completed quote documents Completed order documents Completed back order documents  If keeping history, the completed documents are moved from the work file to the history file. A document is considered complete if it does not contain a deposit and if all line items have a remaining quantity of zero  The following documents can be removed Quotes Orders Invoices Back Orders

12. Sales Order Processing  Check the “Print Report Only” box to review information regarding the selected documents before you Reconcile or Remove.  Remember…these 2 processes are Optional

13. Purchase Order Processing  Print Open Purchase Report  Close any Purchase Orders that can be closed  Print Received Not Invoiced report  Reconcile Received Not Invoiced to GL  Optional: Remove Completed Purchase Orders  Close Period

14. Purchase Order Processing  What is “Remove Completed Purchase Orders?” (Microsoft Dynamics GP>>Tools>>Routines>>Purchasing>>Remove Completed Purchase Orders)  Purchase Orders that have a status of closed or canceled can be moved to History (if you are keeping history). If you are not keeping History this routine deletes the Purchase Order from your company.

15. Purchase Order Processing  Unlike the Sales Order Processing window this window does not have a Print Report before processing.  Only process when all users are out of the system  Consider testing in a Test company before in Production  Remember to make a backup of the company database before running the process

16. Purchase Order Processing  How do I know if I am keeping History?  Go to (Microsoft Dynamics GP>>Tools>>Setup>>Purchase Order Processing)  In the Maintain History section see that the boxes are checked.

17. Inventory  Post all 2014 Inventory related transactions  Optional: Perform Physical or Cycle Count and Post any adjustments  Print Inventory Stock Status Report  Reconcile Value of Inventory to GL

18. Inventory  Make a Backup before running the Inventory Reconcile Routine  (Microsoft Dynamics GP>>Utilities>> Inventory>> Reconcile)  Reconciling Modules should always be done in the following order:  Sales Order Processing Reconcile  Purchase Order Processing Reconcile  Inventory Reconcile

19. Inventory  Run Inventory Year End Close (Microsoft Dynamics GP>>Tools>>Routines>>Inventory>>Year End Close)

20. Inventory  Remove:  Check the boxes for any items you do not want to keep in the system for next year  Discontinued Items:  To remove discontinued items records that are completely sold.  Discontinued Items will be removed from item records during the year end closing process, unless quantities exist for the item or if the item is assigned to a kit, item is a component of a bill of materials, or item has one or more bills of materials of its own  Sold Lot Attributes:  Check box to remove lot numbered item attributes that have been sold.  Sold Receipts and Cost Change History prior to  Check box to remove all sold purchase receipts and historical cost changes for items that use Average Perpetual, LIFO, or FIFO periodic valuation method and enter date. Sold receipts, quantity sold details and historical cost changes with dates that are before the date entered will be removed.  It is Recommended that you print a Purchase Receipts Report and review receipts that will be removed Update: Items Standard Cost: Check box to update Standard Cost of items using FIFO Periodic or LIFO periodic valuation. Choosing this option the standard cost of items will be adjusted automatically to the current cost.

21. Inventory  Close the Fiscal Period for Inventory (Microsoft Dynamics GP>>Tools>>Setup>>Company>>Fiscal Periods)

22. Receivables Management  Perform Month End Processing steps:  Assess Finance Charges if applicable  Post Finance Charges Batch if applicable  Transfer Commissions if applicable  Post all 2014 Receivables transaction Batches  Age Accounts Receivable (Microsoft Dynamics GP>>Tools>>Routines>>Sales>>Aging)  Print Aging Report and check that it ties to the General Ledger AR Account(s) Review and Apply any missed unapplied documents  Optional: Paid Transaction Removal Make a backup and have users exit Dynamics GP before running this process if you choose to run Paid Transaction Removal (Microsoft Dynamics GP>>Tools>>Routines>>Sales>>Paid Transaction Removal)

23. Receivables Management  What is “Paid Transaction Removal?”  In Receivables, customer payments that pay in full a document does not automatically move to History. Dynamics GP considers the transaction as an open transaction and continues to display it on the Aging report along with the associated payments.  The reasoning is joined to the use of Customer Statements. Both the paid invoice and its associated payments can appear on the customer statement.  This process consolidates all balance forward transaction amounts and adds the total to the noncurrent period amount. If you are keeping History, transactions are moved to history. If you are not keeping history then they are deleted from the system.  Moving these fully paid transactions to History means that these transactions no longer appear on the Aged Trial Balance report.

24. Receivables Management  Make a backup  Close Receivables Management (Users must be out of the system for Year End Close routine) (Microsoft Dynamics GP>>Tools>>Routines>>Sales>>Year-End Close)  Close Fiscal Period (Microsoft Dynamics GP>>Tools>>Setup>>Company>>Fiscal Periods)  Close Sales Tax Period for the Year if applicable (Microsoft Dynamics GP>>Tools>>Routines>>Sales>>Tax Year-End Close)

25. Payables Management  Perform Month End Processing steps:  Process Recurring Payables if applicable  Post all 2014 payables transactions  Print Payables Aging Report Check that Aging Report ties to the General Ledger AP Account(s)  Backup company database

26. Payables Management  Perform Year End Processing steps:  Close Year (Users must be out of the system for Year End Close routine) (Microsoft Dynamics GP>>Tools>>Routines>>Purchasing>>Year-End Close)  Close Sales Tax Periods if applicable (Users must be out of the system for Year End Close routine) (Microsoft Dynamics GP>>Tools>>Routines>>Company>>Tax Year-End Close)  Close Fiscal Period (Microsoft Dynamics GP>>Tools>>Setup>>Company>>Fiscal Periods)

27. Banking close  There is no routine to run for closing the Banking Module, however, as part of Month End and Year End close you will want to make sure your checkbooks have been reconciled.

28. Fixed Assets  Preform Month End closing processes  Enter all 2014 Fixed Assets  Depreciate all assets to the end of the year  Preform the GL Posting Routine  Post Fixed Asset GL Batches  Run year end reports that you want to keep for year end Financial records

29. Fixed Assets  Year-End Close Processes  Optional: Verify that FA Calendar is correct  (Microsoft Dynamics GP>>Tools>>Setup>>Fixed Assets>> Calendar) V2013 select the Calendar ID and click Verify  Version Prior to v2013:  (Microsoft Dynamics GP>>Tools>>Utilities>>Fixed Assets>>Build Calendar) Click the Verify Button  Optional: Verify that FA Quarters are setup correctly  (Microsoft Dynamics GP>>Tools>>Setup>>Fixed Assets>> Quarter) Select the Calendar ID and click the Printer Icon

30. Fixed Assets  Close Fixed Assets (Microsoft Dynamics GP>>Tools>>Routines>>Fixed Assets>>Year End)

31. Payroll Close  Payroll Year End Close  http://demand.dynamicscare.com/gpwebinars http://demand.dynamicscare.com/gpwebinars  http://support.microsoft.com/kb/850663 http://support.microsoft.com/kb/850663

32. General Ledger  Preform Month End Close steps  Ensure all accruals, re-classes, general ledger batches are posted for 2014 Very Important….  Use Smartlist to verify that the GL Accounts have the correct posting type of either Balance Sheet or Profit and Loss. (Microsoft Dynamics GP>>Smartlist>>Financial>>Accounts)

33. General Ledger  Year End Close steps  Check that Fiscal Year for 2015 is setup (Microsoft Dynamics GP>>Tools>>Setup>>Company>>Fiscal Periods)  Check that the Financial box for the first period in the new year is unchecked as well as last period of 2014

34. General Ledger  Check that the Retained Earnings Account exist on the General Ledger Setup window (Microsoft Dynamics GP>>Tools>>Setup>>Financial>>General Ledger)

35. General Ledger  Make a Backup  Preform the Financial Year Closing (Have Users Exit Dynamics GP) (Microsoft Dynamics GP>>Tools>>Routines>>Financial>>Year-End Closing)

36. General Ledger  New in GP2013  Remove Unused Segment Numbers  Mark this option to remove any account segments during the year end closing process that are not used in an account number.  Maintain Inactive Accounts  Inactive accounts with zero balances that you want to keep inactive, check the box and select which accounts to maintain.  To delete all inactive accounts with zero balances, unmark Maintain Inactive Accounts  With Budget Amounts Mark to keep inactive accounts with zero balances that have budget amounts from being deleted during the process. Inactive accounts with zero balances and no budget amounts will be deleted.  All Inactive Accounts Mark to keep all inactive accounts from being deleted during the process.

37. General Ledger  The General Ledger close does not have to be preformed with the other sub-module closings, however, it is preferred.  Until the GL Close is preformed the 2015 Financial Statements will not be correct.  GL Close closes P/L accounts to Retained Earnings and rolls Balance Sheet accounts forward.

38. Review  Remember the modules have to be closed in order:  Sales Order Processing  Purchase Order Processing  Inventory  Receivables Management  Payables Management  Banking  Fixed Assets  Payroll  General Ledger

39. Review  Not all modules have a Year End Close window. They are…  Sales Order Processing  Purchase Order Processing  Banking  Modules with Year End Close Window:  Inventory  Receivables Management  Payables Management  Fixed Assets  General Ledger

40. Review  2015 Transactions should be added to 2015 batches, however, recommended not to post until 2014 is closed.  Remember to have users exit Dynamics GP and make backups before running Utilities, Routines or Year-End close process windows.

41. Questions  If you have additional questions, please email: info@ibisinc.com Also, remember to sign-up for or preview previous DynamicsCare Webinars at http://demand.dynamicscare.com/gpwebinars  Access my Year End close cheat sheet at… http://dynamicscare.com/?p=13845

42. Amy Walsh Senior Consultant November 11, 2014 Year End Close