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

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

3. General Ledger

4. General Ledger Year End Close
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

5. 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)

6. 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

7. 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

8. 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

9. General Ledger Year End Close
Process

10. 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

11. Accounts Payable

12. 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

13. 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

14. 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

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

16. Account Receivable

17. 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

18. 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

19. 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

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

21. 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

22. 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

23. 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

24. Inventory Control

25. 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

26. 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

27. 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)

28. Fixed Assets

29. 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

30. 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

31. 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)

32. 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)

33. Analytical Accounting

34. 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)

35. 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

36. Payroll

37. 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

38. 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.

39. 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

40. 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 Transmittal form
Create the W-2 Electronic file. 
Install the payroll tax table update (once numbers are verified)

41. 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

42. 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

43. Q&A

44. Thank You Carol Kossoris, CPA, MBA Heartland Business Systems
@GPUG