1. Dynamics GP Year End Close
Do it Right the First Time
Presented by:
Sandy Kylliainen, CPA, MBA
December 06, 2016

2. Prepare, Then Close… Module Closing Order Module KB Article
Project Accounting
Inventory
Receivables Management
Payables Management
Fixed Asset Management
Payroll
Analytical Accounting &
General Ledger
This presentation will be available on our site –
Reference UGM – YE Data
These are modules, in recommended order, allows for data to get to GP

3. No Year End Changes Inventory Control Receivables
Analytical Accounting – (Remember to run AA scripts to check data )
General Ledger – ( Reminder – Never use reverse historical year for failed year end close)
There are no year end changes in the following modules
AA link is provided in the YE Close for AA - new scripts to find bad data
Reminder – Do not use the reverse Historical Year for failed GL close – restore from Back up - talk about that later with the GL close

4. Doing more with less today by…
Closing the Year without excitement:
Managing the closing process monthly, not yearly
Using Check Links to identify potential issues, as they occur
Controlling the close of data to the GL by module, with the Fiscal Period Close window
Close modules on or as close to 1/1 for accurate YTD totals
Have a backup
Our goal is to close without excitement!
We want to make the YE close a smooth process, there are a couple ways to accomplish this ….
Perform YE close as close to 1/1 & before data entry into new year.
Smart List balances & YTD AP/AR balances –amount since last close, will be wrong if data for new year is posted prior TO YE Close. Can use fiscal & Calendar views
Last comment – Backups, Backups, Backups

5. Fiscal/Period Close (Administration>> Setup >> Company >> Fiscal Periods)
Allows Closing by Module by Month (i.e. denies access to the module)
Available for GL, AR, AP, Inv, PR, Project
Mass Close Fiscal Periods Button Close Period(s) Per Transaction Type within a Module
Allows control of a portion of a module to be closed, by month
Setup New year & periods for year - calculate

6. It’s all about tying to the GL
2. Receivables
3. Payables
1. Inventory
Do you tie your sub ledgers to the GL? If you are not doing this you should be.
General Ledger
4. Fixed Assets
6. Payroll
5. Project Accounting

7. Reconcile to GL (Financial>> Routines>> Reconcile to GL>>)
Available for AP, AR, Inv, & Bank Rec
Prints a report to excel showing what is in both modules and all
unmatched transactions-- what is in one and not the other

8. Good Monthly Preparation makes the YE Close…EASY!
Prepare, Then Close…
Good Monthly Preparation makes the YE Close…EASY!
Here’s how we make the YE Close Uneventful
Pre-Closing Routines >>
How are we going to make the monthly process easy and year end uneventful!
We are going to have a set of pre close routines! I will show you some of these processes.

9. Verify Postings/Print Trial Balances
Prepare, Then Close…
Verify Postings/Print Trial Balances
For the current period and/or the year
Check Setups
General Ledger, Inventory, Sales, Purchasing, Payroll…
Monthly Maintenance
Check Links, Reconcile, Review Trial Balances
Backups Before…and AFTER Close
Check Master Posting..is everything posted? Administration – Routines – master posting
Practice in a test company –we can restore your production data to a test DB if not getting proper results, work with help desk.

10. Project Accounting Module – KB Article 875116
Project Accounting does not have any required year-end closing procedures for the fiscal year or for the calendar year. Projects can span multiple fiscal periods. Additionally, projects are independent of the fiscal year and of the calendar year

11. Project Accounting Module – KB Article 875116
You may perform the following procedures as part of the year-end process:
Post all cost transactions
Run the final billings and revenue recognition on projects for the year. You do this to make sure that the General Ledger module is updated before you run the year-end routine in the General Ledger module. After you do this, Project Accounting and General Ledger will reconcile more quickly and easily
Update the rate tables in the PA Position Rate Table Maintenance and PA Employee Rate Table Maintenance windows

12. Inventory Control YE Close –KB Article 872713
What does the year end close do and or affect?
Transfers all summarized current-year Quantity, Cost and Sales amounts to last-year for the Items for which you have been keeping 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 (Cards - Inventory - Quantities/Sites) for each site
Gives you the option to: Remove Discontinued Items, Remove Sold Receipts, Remove Sold Lot Attributes, and Update Item’s Standard Cost

13. Inventory Module – KB Article 872713
Make a backup
Post all transactions for the period/year
Reconcile inventory quantities
Complete a physical inventory count, create adjusting entries & Post adjustments
Mark items “Discontinued” where appropriate
Run reconcile to make sure your inv. data has not become damaged during the year. Inventory – Routines – reconcile. If you are using Sales Order Processing and/or Purchase Order Processing, be sure to reconcile each of these modules along with the Inventory module prior to closing. The order in which to reconcile these modules is as follows: SOP, POP and then Inventory.
Use the stock count entry in GP or manually do a count.. Can print the physical Inv. Checklist report under inventory - reports - activity then verify on hand match what is in GP .

14. Inventory Module – KB Article 872713
Print Stock Status Reports, etc. (Inventory – Reports)
Make a backup
Close the period/year
No year end report prints
Remove –these are all optional steps!
Remove Discontinues must have zero qty on hand and must not exist on any unposted documents –
When running the Inventory Year-End closing process (Routines - Inventory - Year End Close) and you mark to remove discontinued items, the system will automatically remove both transaction and distribution history for these items. You will be unable to drill back on the inventory history for these items.
Remove sold receipts - qty received amounts has to equal qty sold amounts be careful once you do this you cannot do a return on the item..maybe do this every couple years.
Update an item's standard cost -the Standard Cost for any FIFO periodic or the LIFO periodic item will be adjusted to reflect the item's current cost or the amount you most recently paid for the item
Backup!!

15. Receivables Module – KB Article 857444
What does the year end close do and or affect?
The Calendar Year end close clears the Calendar Year to-Date Finance Charges and moves them to the Last Year Calendar field in Customer Finance Charge Summary (Cards – Sales – Summary – Finance Charges)
The Fiscal Year end close transfers all amounts other than the Calendar YTD Finance Charge amount to the Last Year column in Customer Summary using the Amounts Since Last Closed View (Cards – Sales –Summary)

16. Receivables Module – KB Article 857444
Make a backup
Post all transactions for the period/year
Follow normal month-end procedures
Age Receivables
Print Statements
Run Paid Transaction removal
Write off documents
Transfer Commission
Print Trial Balance Reports, etc.

17. Receivables Module – KB Article 857444
Run the fiscal/year end closing routine
Close the calendar/fiscal year
Make a backup

18. Payables Module – KB Article 875169
What does the year end close do and or affect?
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 all other amounts from the Year to Date column to the Last Year column in the Amounts Since Last Close view

19. What’s new in Payables Year End
There are changes for the 1099-INT, and the 1096 Summary forms included in the 2016 Year-End update
You will need to install the 2016 Year-End update to get these changes

20. What’s new in Payables Year End
For GP2015 & 2016
1099 INT: On the 1099-INT form printout, Box 12 has been named Bond Premium on Treasury obligations. Last year, Box 12 was added without a label. This year the label for Box 12 was added
For GP2013, GP2015, & GP2016
1096 Summary: Layout changes were made to the 1096 Summary form. Box 1099 K-10 was moved to the first line. On line 2, Box 5498-QA 2A was inserted (right after Box 5498-ESA 72).  Additionally, all boxes have been made smaller to accommodate an additional box on each row
Load the payroll YE for these changes

21. Payables Module – KB Article 875169 Make a backup
Post all transactions for the period/year
Post period/year end adjustments as required
Print Trial Balance Reports, etc.
What should I do if I must issue a check on January 1, 2015 but I am not ready to close 2016 yet? Print the checks, but post them after you process your year-end closing. If you must post the checks immediately, change the Amount Paid fields in the Amounts Since Last Close view of the Vendor Yearly Summary window.

22. Payables Module – KB Article 875169
1099 processing….(Purchasing>>Routines>>Print 1099)
Install the payroll Year end Updates (Optional)
Order 1099 forms - Microsoft or an office supply store
Pre-1099 Backup
Review/Update 1099 Vendors
Run for each type
Review 1099’s ( for electronic solutions)
If there are compliance changes for Payables Management, such as 1099 form changes (There are some this year), install the Payroll year-end update. If there are no changes or compliance issues for the tax year for Payables Management, you may skip this step.

23. 1099 Requirements
Produce a 1099 for every 1099 vendor with transactions during the year
If you have more then ’s you are required by law to file electronically. (
Be Proactive and collect EIN’s now
Create Smart list to see all 1099 vendors & amounts & collect Tax ID’s /mail merge to send doc
Employer ID Number
MEM 1099 info – can be provided.. If you use Multi Entity MGT, you can produce 1099’s by entity. You need to set GP up to do this via security. Contact us if you would like 1099 or W2 information for Binary.

24. Payables Module – KB Article 875169 Run the year end closing routine
Close the fiscal period/year …. (Purchasing>>Routines>>Year End Close)
Close the tax year after AR and AP are closed
Make a backup
Close the tax year after AR and AP are closed (Optional)
Updates YTD buckets for Tax IDs Admin – company – Close tax year
This procedure should only be completed after you have completed the year-end closing procedures for all sales and purchasing modules. Make sure you have a backup! Tax information from last year is deleted and if you have a power fluctuation during the close you will have to restore from backup

25. Fixed Asset Module – KB Article 865653
What does the year end close do and or affect?
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
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

26. Year End Fixed Assets - What’s New
There are changes to the Luxury Auto Maximum Depreciation Deduction amounts.  Maximum depreciation deduction amounts for luxury vehicles have been updated for assets placed in service in calendar year 2015 (PATH Act) and 2016 to comply with IRS Guidelines. Details (Including limitations) included in YE update PDF instructions)
New Fixed Asset Year End report (shows all assets affected by the close) - New in Microsoft Dynamics GP2015

27. Fixed Asset Module – KB Article 865653
Insure AP module is closed first! (Records any potential Fixed Asset Purchases)
Confirm the calendar and quarterly setups are correct… Financial >> Setup>> Fixed Assets>>Calendar
1. Close AP first – this guarantees that all the outstanding fixed asset transactions are capitalized
Financial-setup –FA>> Utilities - build calendar
Financial-setup –FA>> Utilities - quarter

28. Fixed Asset Module – KB Article 865653
Depreciate all assets through last period
Complete the GL Posting Process
Produce and Review Year End Reports
Annual Activity
Additions
Retirements
Transfers
Depreciation Ledger
Property Ledger
Fixed Assets to General Ledger Reconciliation
Enter & post all Fixed asset transactions for the current year --It is very important to depreciate all assets through the last day of the current FA Fiscal Year to ensure depreciation amounts are correct

29. Fixed Asset Module – KB Article 865653 Create a backup
Close the year for your tax book(s)…
Fixed Assets>>Routines>>Year End …Select Assets Book(s)
Note : Now A report is generated during the fixed assets year-end closing routine.
You can see the current Fiscal year under the book setup & this cannot be changed now
You must run the year end procedure for Fixed assets this can be run after the GL Year end close if you forgot last year –just make sure you can post to History

30. After ALL current year pay runs are complete
Payroll Module – KB Article
What does the year end close do and or affect?
Creates the 'Year End Wage' file containing annual wage information used to generate W2’s, W3’s, 1099's, and Magnetic Media for the year being closed
Should be completed:
After ALL current year pay runs are complete
After Making a Backup
Before processing pay runs in the new year

31. What’s new in Payroll Supported Versions for 2016 Year End Updates
Microsoft Dynamics GP Mid November
Microsoft Dynamics GP Mid November
Microsoft Dynamics GP December 2nd
Note : Updates are all-inclusive
Year End Release dates (GP2013/GP2015 – now available, GP2016 Dec. 2nd

32. Payroll 2017 Round 1 Tax Update
2017 Round 1 - Scheduled to be released Mid -December
2017 Round 2 - will be available Mid - January
Do not install until after the Year End Wage file is generated and all payrolls for 2016 have been processed!
The 2016 U.S. Payroll (round 1) tax updates for Microsoft Dynamics GP20013 & 2015 are targeted to release mid December, Round 2 will be released Mid January
This is just a tax table update only, no code changes & does not need to be loaded on each workstation.
Please Do not Install 2017 Tax Update (Round 1) until all the 2016 pay runs are complete.

33. What’s new in Payroll There are NO W-2 or W-3 form changes!
There are NO EFW2 form changes! (Extended deadline 1/31/2017)
The deadline for EFW2s (aka Magnetic Media) is 1/31/2017 this year. So both W-2's and EFW2's are due the same day. We recommend you verify both your W-2 and EFW2 well before this deadline to ensure you have adequate time to validate your data
Affordable Care Act changes – for details

34. What’s new in Payroll
In Microsoft Dynamics GP 2015 R2, the capability was added for employees to print their own W-2 statements as part of Time Management self-service functionality
To enable this new feature, the 'Publish to Employee Self Service' field was added to the Print W-2 Forms window (Microsoft Dynamics GP >> Tools >> Routines >> Payroll >> Print W-2s)

35. What’s new in Payroll
With the release of Microsoft Dynamics GP 2016 R2, users can now print W-2's with lines on blank paper
The 1-Wide Forms with Box Form Type was added in the Print W-2 Forms window

36. Payroll Module – KB Article 850663
Complete current year payroll processing
Verify W-2 and 1099-R information
Print W-2 and W-3 transmittal form
Print 1099-R and 1096 transmittal form
Create Magnetic Media file (if required)
Archive inactive employees
Setup Fiscal Periods for the next year
Close the Fiscal Period for the Payroll Module
What does the payroll year end do: Creates a year end wage file containing annual wage information used to create W2’s, W3’s, 1099’s & Magnetic media for the year being closed.
Complete month, period & quarter procedures for the current year

37. Payroll Module – KB Article 850663
Make a backup, including the Dynamics & Company DB’s, shared files and Reports/forms dictionary's
Confirm the latest 2016 payroll Year End update has been installed - Must be deployed on all GP workstations
Complete pay runs for current year
Create a backup
Create the Year End Wage File - Payroll Year End Closing
Create another backup

38. Payroll Module – KB Article 850663
Install the payroll tax update for 2017 (Round 1) Scheduled to be released MID December
Alternative processing exists for those who must process payroll for next year before the current year is closed
Make a backup
Install after you create the year end wage file before any 2017 pay runs

39. Analytical Accounting KB960356
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
Automatically moves open year AA data to historical tables
Update 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

40. Analytical Accounting KB960356
Run Scripts to check AA data against GL (see KB ) Run scripts before Closing the GL
Analytical Accounting has to be installed on machine where you are doing the year end close or the balances will not be brought forward
No changes in AA but YE KB has been updated to include scripts to find bad data issues
KB Important that BB be brought forward

41. General Ledger Module – KB Article 888003
What does the year end close do and or affect?
Calendar YE Close (Financial >> Routines >> YE Closing) Reconciles and Summarizes GL Balances
Transfers P&L amounts to Retained Earnings
Zeros P&L amounts closing to Retained Earnings
Balance Sheet and Unit Account balances are brought forward to the new year
Removes inactive accounts with zero balances (if maintain inactive accounts is not checked )
Prints the YE Closing Report
What happens with the GL close
Amounts are transferred from open to transaction history tables
PL amounts are zero out & transferred to retained earnings
BS accounts are brought forward to the new year

42. General Ledger Module – KB Article 888003
Complete closing procedures for all other modules FIRST. Avoid prior period adjustments!
Make a backup
Print Trial Balances/Financials for review
Close the other modules to prevent posting
Post the current period’s adjusting entries

43. General Ledger Module – KB Article 888003
Confirm the account types now! …use a smart list!
Run Check Links
Verify GL Settings - RE account
Make a backup
Print final Detailed Trial Balances and Financials
Verify Financial Reports for current year
Close Fiscal Periods
Create the next fiscal/calendar year
Show smart list under Accounts for Income Statement Check
Confirm RE is in GL setup
Need to do adjusting entries will need to check allow posting to history

44. General Ledger Module – KB Article 888003
Check the print settings, paper, pdf writer, etc.
Perform the Year End Close…
Financial>>Routines>>Year-end Closing
When the year-end closing routine is complete, the Year-End Closing report is printed. This report lists the accounts that were closed and the transactions that were created to close those accounts. The Year-End Closing report is part of the audit trail. Save this report for the company's permanent records. The Year-End Closing report cannot be reprinted.
Make sure you have enough space..the GL20000 will double in size
Have all users log out when you do the close
Use the Reverse Historical Year window to open the most recent historical year if/when needed. (Do not use for a failed YE close –restore from backup in this case)

45. General Ledger Module – KB Article 888003 Review the YE closing report
Check the status of the YE close window
Run a Summary Trial Balance to confirm YE close
Confirm the YE was successful!!!
The year-end closing routine reconciles and summarizes the general ledger balances that accumulated throughout the year.
The year-end closing routine removes accounts that are marked as inactive if the accounts match the criteria for deleting a posting account. Inactive accounts that have been set up as budget accounts can also be deleted if they have no activity for the year. These accounts can be deleted even if budget amounts from past years are associated with these accounts.
The year-end closing routine moves all profit and loss account balances to the retained earnings account.
The year-end closing routine summarizes balance sheet accounts and brings the balances forward as the beginning balances of the account in the new fiscal year.
The year-end closing routine prints the Year-End Closing report.

46. General Ledger Module – KB Article 888003 Housekeeping, updates
Budgets
Financial Reports
Statistical Accounts
GL Accounts
Close all modules and GL for prior periods
Adjust the budget figures for the new year, and then print the financial statements
Print the "Profit and Loss" statement to verify that profit and loss accounts were closed to the retained earnings account. Print the balance sheet to verify that the balance sheet accounts indicate that the balances were brought forward
Note: You can post an entry to the most recent historical year if the Posting to History check box is selected in the General Ledger Setup window. If you post an entry to a closed year, a second entry is automatically made that updates the beginning balances for the current fiscal year.

47. General Ledger Module – KB Article 888003
Reminder - Do not use the Reverse Historical Year button for a failed year end close. If you have a failed Year - End Close restore from backup
In the Unit Account Maintenance window, there is a checkbox to Clear Balance During Year-End Close, so you can have the unit account balances automatically cleared for you instead of doing it manually
Do not use Reverse Historical Year for failed close

48. DYNAMICS GP
Year End 2016
Thank You!