Microsoft Dynamics SL

Transcription

1 Microsoft Dynamics SL 2015 Year-End Close Procedures The information contained herein is the property of MIG & Co. and may not be copied, used or disclosed in whole or In part to any third party except with written approval of MIG & Co. or, if it has been authorized under a contract.

2 PLEASE NOTE: This document provides an all-inclusive list of tasks that may be run as part of the Year End close. Some of these tasks may not be relevant to your installation on the setup of SL at your site. Factors which would determine this would include: version of SL, modules installed, any customizations that may have been done and whether your company is on a Fiscal or Calendar year. We encourage you to contact MIG s Support Manager to discuss how to best implement the instructions contained in this document for your company. P : 855.MIG.CORP ( ) E : info@mig.com Page 2 of 31

3 CONTENTS SUMMARY... 4 DYNAMICS SL MODULE INCLUDED IN CLOSING... 5 FINANCIAL SERIES... 5 SUPPLY CHAIN & ORDERS... 5 PROJECT SERIES & PROJECT MANAGEMENT... 5 CLOSING SEQUENCE... 6 CLOSING PROCESS... 7 PURCHASING... 7 INVENTORY... 8 ORDER MANAGEMENT... 9 WORK ORDERS TIME AND EXPENSE FOR PROJECT PAYROLL HOW TO APPLY PAYROLL YEAR END UPDATES ACCOUNTS PAYABLE PRINTING 1099 S CALENDAR YEAR CONTROL MAGNETIC MEDIA TRANSMITTER TAB ACCOUNTS RECEIVABLE CASH MANGER ALLOCATOR PROJECT CONTROLLER GENERAL LEDGER MIG & CO. SUPPORT & TRAINING P : 855.MIG.CORP ( ) E : info@mig.com Page 3 of 31

4 SUMMARY Year-end closing for Microsoft Dynamics SL It is imperative to perform The Year-End close of Microsoft Dynamics SL. There two aspect to closing financial year; procedural and systematic. Your financial system includes many distinct steps that allows for closing the year and initializing new-year balances. If the year is not closed completely or steps have been missed in the process; some of the current-year and last-year fields may not display correct information in the system. This document provides a list of required and optional tasks for the Year - End close process for Accounts Payable, Accounts Receivables, General Ledger, Project Controller, Cash Manager, Payroll, Order Management, Inventory, Purchasing and Work Order. Each step will be discussed in detail under the Year - End Close Procedures section of the document for each module. Additional information on the Year - End close can be found in the last section. Navigation and instructions are provided for Microsoft Dynamics SL. Finalize all Applicable Transactions Reconcile Submodules to General Ledger Print Necessary Reports and Files Make a Back-up BEFORE CLOSING Begin Closing Process P : 855.MIG.CORP ( ) E : info@mig.com Page 4 of 31

5 DYNAMICS SL MODULE INCLUDED IN CLOSING General Ledger Payroll Accounts Payable Accounts Receivable Bank Reconciliation Cash Manager Financial Statement Translation Financial Series Purchasing Inventory Order Management Work Order Supply Chain & Orders Project Series & Project Management Time and Expense for Projects Allocator P : 855.MIG.CORP ( ) E : info@mig.com Page 5 of 31

6 CLOSING SEQUENCE SL System Closing Time and Expense Accounts Payable Purchasing Payroll Inventory Order Managment Accounts Receivable Cash Manager/ Bank Rec Allocator Project Contoller Word Orders General Ledger P : 855.MIG.CORP ( ) E : info@mig.com Page 6 of 31

7 CLOSING PROCESS Purchasing Purchasing module closing process includes tasks that other modules are dependent upon. Running Open Purchase order Report Determine Year End Open PO Accruals Run unvouchered Receipts Report Update Blanket PO for additional terms Close inactive PO s Delete or Complete Old Purchase Orders Purchase will close when Accounts Payable is closed. P : 855.MIG.CORP ( ) E : info@mig.com Page 7 of 31

8 Inventory Ensure all batches are released Update all pending Costs/Rates P : 855.MIG.CORP ( ) E : info@mig.com Page 8 of 31

9 Update Standard Costs this process will also update the cost for work orders. Update Kit Standard Costs In General Ledger Close Inventory for the Year. Order Management Although Order Management does not have screens for year-end close, there are few things to keep in mind while closing other modules. Update Pricing for Current Year Run Sales Journal prior to closing AR, Inventory and General Ledger Delete Old inactive orders. Transaction Period from Order Management is driven from Accounts Receivable. P : 855.MIG.CORP ( ) E : info@mig.com Page 9 of 31

10 Work Orders Work orders will impact several modules as they are processed. Following must be run and processed before closing the year. Complete all work orders that have been completed. Run Allocator to update costs Run GL to WIP reconciliation and reconcile WIP Accounts Period for Work Order and Costing is driven by Inventory Module. P : 855.MIG.CORP ( ) E : info@mig.com Page 10 of 31

11 Time and Expense for Project Ensure all timecard are approved and posted Ensure all expense items are approved and posted Update week maintenance for current year Update Worker Compensation Rates Reconcile and Company Expenses Post all labor costs through GL Labor Posting P : 855.MIG.CORP ( ) E : info@mig.com Page 11 of 31

12 Payroll Year-End processing typically done on 12/31. Process final payroll and period/quarter procedures. Calculate W2 s Review and Edit W-2s Print W-2 Forms Run Magnetic Media file for upload Apply Year-End Updates, available via CustomerSource download. Typically, new tax tables are installed after Year End payroll close. P : 855.MIG.CORP ( ) E : info@mig.com Page 12 of 31

13 How to Apply Payroll Year End Updates Obtain year end updates from Microsoft: CUSTOMERSOURCE Payroll in Microsoft Dynamics SL tracks important Employee W-2 information. At the beginning of a new year, there are some steps you can take to ensure your Payroll information is in balance. Below is a checklist outlining the general guidelines used for balancing and closing Payroll for the year. Your organization may have additional balancing steps. Upon completion of the final Payroll processing for the year, print and review the following reports for balancing the Payroll module: 941 Quarterly Federal Tax Worksheet Unemployment Tax Worksheet Earnings & Deductions report, Detail and Totals formats P : 855.MIG.CORP ( ) E : info@mig.com Page 13 of 31

14 Balance the 941 Quarterly Federal Tax Worksheet and the Unemployment Tax Worksheet with the Earnings & Deductions report, Totals format. Make a BACKUP of the database that can be restored in case an undesired data loss occurs. Use GL Closing to close the module for the year. For Payroll in a Fiscal Year database, the Year is closed in the period that ends December 31. Note Payroll must be closed for the current year before you can process Payroll for the New Year. Update deduction and earnings information for Employees such as new SUTA rates, new health insurance rates, etc. Update Payroll tax table information. Generate W-2s for Employees. Refer to W-2 Processing below. W-2 Processing The W-2 process in Microsoft Dynamics SL allows you to generate and print W-2s for your Employees and the Internal Revenue Service. All of the earnings and deductions to be printed on the W-2 including 401(k) information, dependent care information, etc., will be printed in the W-2 boxes as designated in Earnings Maintenance and Deduction Maintenance. Print and review the Earnings & Deductions report, Detail and Totals formats. If you are generating a magnetic media file for the Internal Revenue Service, access W2 Magnetic Media and verify the information is accurate. Run the W2 Calculation process. Print the W-2 Forms to plain paper and review the information for accuracy. Verify the totals balance with the totals from the Earnings & Deductions report, Totals format. P : 855.MIG.CORP ( ) E : info@mig.com Page 14 of 31

15 If changes are needed for specific Employees, you can make changes to W-2 amounts by opening the Options menu, checking Initialize Mode, accessing Employee W2 History, selecting the Employee that needs a correction, and entering the corrected information. If changes are needed for specific deductions, you can make these changes in Deduction Maintenance. Once these types of changes are made, the W2 Calculation process should be rerun. The Protect Edited W2 Information field in W2 Calculation specifies that W-2 information which has been edited for the calendar year will not change during subsequent W-2 form regeneration. This option can be selected and deselected as necessary and is not in effect during the initial processing run. When the W-2 information is accurate, print the W-2s on the appropriate forms. If generating a magnetic media file, access W2 Magnetic Media and generate the magnetic media file. Note Microsoft Dynamics SL will retain Employee W-2 information for as many years as specified in the Years To Retain Employee History field of PR Setup. Payroll Reports Balancing Tips Add the wages, withholdings, etc. from the four quarterly 941s filed for the year and verify that they match the totals on the W-2s and the totals on the Earnings & Deductions report, Totals format. Use the Earnings & Deductions totals to balance the W-2 information for state wages and state withholding amounts to the forms that are filed with your state taxing authority. Print the General Ledger Trial Balance, and compare with the Earnings & Deductions report, Totals format to balance the wage accounts, liability accounts, etc. The QTD and YTD information on the Earnings & Deductions report and the Unemployment Tax Worksheet come from the data in Employee History. If an error is found on either report, you can use Initialize Mode to correct the information for an Employee in Employee History and then reprint the report. P : 855.MIG.CORP ( ) E : info@mig.com Page 15 of 31

16 Accounts Payable Review open Accounts Payable files to ensure all documents for the year have been entered. Print or review the AP Batch Register to ensure there are no open Accounts Payable batches for the entire year, periods 01 through 12. P : 855.MIG.CORP ( ) E : info@mig.com Page 16 of 31

17 Finish\Release any open batches found in the above step. Run the Post Transactions process in the General Ledger module. Print or review the Vendor Trial Balance and General Ledger Trial Balance. Compare the account totals Vendor Trial Balance to the corresponding account balance on the General Ledger Trial Balance. If the numbers equal you are ready to close the year for the Accounts Payable module. If the numbers do not equal, then review the following: Review the beginning Accounts Payable balance for the year and match it to the ending account balance from last year s reports to ensure no entries have been made to prior years. Review the Detail General Ledger for any entries to the Accounts Payable account/subaccounts which did not originate from the Accounts Payable module. Review the GL Transactions Un-posted report to ensure no transactions for the current or future periods exist which could affect the General Ledger or Vendor balances. Review the Account Distribution report to ensure that the Accounts Payable account was properly debited for debit adjustments and Checks and properly credited for Vouchers and credit adjustments. Be aware of the effect of any void Checks when reviewing this report. Review the AP Transactions report for any batch detail which may come in questions as a result of reviewing the other reports. o If no differences are noted, you may want to verify the integrity of the Accounts Payable data by running the verification process in Accounts Payable Integrity Check screen, ensuring to only check the options that begin with verify. o If corrections are made, reprint the Vendor Trial Balance and the Trial Balance for the General Ledger for the filing. Any working papers to summarize reconciling items which are not corrected should be filed with the monthly reports. o If an Aged AP Report has not been run, print the report for the file. P : 855.MIG.CORP ( ) E : info@mig.com Page 17 of 31

18 Process 1099 s if appropriate. Reference KB for 1099 Year-End Closing Checklist. Printing 1099 s Ensure the 1099 Preview Report confirms proper vendors and balances (Note: 1099 Preview will show all 1099 Vendors, but the 1099 forms will ONLY print 1099 Vendors that have gone over the limit) Go to Reports and click 1099 Forms Report Note the Year (current or next) to print depending on the 1099 Year setting P : 855.MIG.CORP ( ) E : info@mig.com Page 18 of 31

19 1099 Calendar Year Control Only 2 years can be open at a given time for 1099 s Leave the PRIOR Year open and the CURRENT Year open Example: For the New Year 2016, The Current Year Should be 2015 and the Next Year should be This allows us to void checks for prior years and still enter check for the Current Year. Depending on your setting, Change Process Option to PURGE OLDEST YEAR if the CURRENT 1099 Year is 2014 ONLY; if you purge 2015, you will lose the 1099 data you need to print this year s 1099 s P : 855.MIG.CORP ( ) E : info@mig.com Page 19 of 31

20 1099 Magnetic Media Transmitter Tab The Transmitter Tab: Control Codes comes directly from the IRS Most Information populates directly from YOUR company maintenance, but can be changed prior to generating the file Add Contact Info Double check accuracy P : 855.MIG.CORP ( ) E : info@mig.com Page 20 of 31

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23 Accounts Receivable Review open Accounts Receivable files to make sure all documents for the year have been entered. Print or review the AR Batch Register to make sure there are no open Accounts Receivable batches for the year. Finish or release any open batches. Run the General Ledger Post Transactions process to post any un-posted AR batches. Print or review the Customer Trial Balance and General Ledger Trial Balance. Compare the account totals on the Customer Period Trial Balance to the corresponding account balance on the General Ledger Trial Balance. If the numbers equal, you are ready to close the year for the Accounts Receivable module. o If the numbers do not equal, review the following or reference Microsoft Knowledge Base article for a complete guide to reconciling AR to GL: Review the beginning Accounts Receivable balance for the year and match it to the ending account balance from last year s reports to make sure no entries have been made to prior years. Review the Detail General Ledger ( ) for any entries to the Accounts Receivable accounts/subaccounts that did not originate from the Accounts Receivable module. Review the GL Transactions Un-posted report ( ) to make sure that no transactions for the current or future periods exist that may affect the General Ledger or AR Customer balances. Review the Account Distribution report ( ) to make sure that the Accounts Receivable account was correctly debited for invoices and debit memos and correctly credited for credit memos and payments. Review the AR Transactions report ( ) for any batch detail that you may need to answer questions as a result of reviewing the other reports. If no differences are noted, you may want to verify the integrity of the Accounts Receivable data by running the verification processes in Accounts Receivable Integrity Check ( ). Make sure you only select the options that start with verify. If corrections are made, reprint the AR Customer Trial Balance and the GL Trial Balance and file the reports. Any working papers to summarize reconciling items that are not corrected are filed with the monthly reports. P : 855.MIG.CORP ( ) E : info@mig.com Page 23 of 31

24 If an Aged AR Report has not been printed, run the Age Customer Detail process and then print the Aged AR report for the file. If your organization generates invoices through Project s Flexible Billing, you will need to process and post all of the Flexible Billing invoices to Accounts Receivable before you can close Accounts Receivable for the year. Close the Accounts Receivable module for the year in General Ledger Closing. Apply new Microsoft Dynamics SL Tax Tables. Cash Manger Enter all Cash Transaction and final charges on bank Statement Generate Consolidation for companies that require consolidation Read / Import Consolidation from subsidiaries P : 855.MIG.CORP ( ) E : info@mig.com Page 24 of 31

25 Clear and Check and Deposits Reconcile bank accounts Print Bank Reconciliations Print Check Register Close Period P : 855.MIG.CORP ( ) E : info@mig.com Page 25 of 31

26 Allocator All Allocator tasks must be completed before Project Controller can be closes. Indirect Rate Calculator must be run Allocator Processor Should be run and Report Printed. Close Project Year at Actuals P : 855.MIG.CORP ( ) E : info@mig.com Page 26 of 31

27 Project Controller Be sure the transactions are complete for all integrated modules your company is using, before beginning the closing process. From the Project Controller, run the Financial Transaction Transfer process to ensure all transactions have updated Projects. Project Controller must be closed at the end of each fiscal period. This closing process helps control a few areas, checking specifically, if: All sub modules have posted to the Projects The accounting modules are closed to additional entries All project charge entries are posted Exceptions exist, then the Closing process is prevented Any unprocessed Timecards exist Troubleshooting Tip: Ensure Project Balance Forward settings are accurate so amounts are calculated for moving amounts to the new year especially for projects that span fiscal years Balance Forward at Year End determines whether the year-end total of a projects budgets and actuals are rolled forward as the beginning balance for the coming year, during the year end Close Period process P : 855.MIG.CORP ( ) E : info@mig.com Page 27 of 31

28 Prior to closing the year, be sure that balance forward is checked on all projects that you want to have Project To Date information for. If this checkbox is not checked, only Month to Date and Year to Date information will be captured going forward. NOTE: If the module is closed for the year and some projects were not marked as Balance Forward, the balances can be corrected by changing the current period in PC Setup back to the last period of the previous year, then marking the Balance Forward option in Project Maintenance and running the closing process again. For ANNUAL Projects, or projects that are re-budgeted each year WITHOUT regard to the previous years, this check box should be clear so that the beginning balance is set to zero for the next year Close Period Screen If the closing process deems that the current period is also the last fiscal period of the year, the screen will change from BEGIN PROCESSING to BEGIN YEAR-END CLOSE, and Close Period closes the year. P : 855.MIG.CORP ( ) E : info@mig.com Page 28 of 31

29 General Ledger Prior to starting the year-end closing process, make a backup of the database that can be restored if needed. Complete the posting and closing procedures for all sub-modules. Verify that all General Ledger batches are released and posted. This can be done by running the General Ledger Batch Register Report for the fiscal year being closed using Select criteria of Field= batch.status, Operator= IN, Value= B, H, S, U. Any batches appearing on the report will require further processing. In the case of B or H status batches the release and post process will be necessary or the batch can be deleted if so desired. Any U status batches, with a period to post within the fiscal year being closed, must be posted. U status General Ledger batches can be selected and deleted from Journal Transactions while in Initialize Mode. If Allocations are used, verify that the batches have been generated and posted. This can be done by running the General Ledger Batch Register Report, Detail format, using Select criteria of Field= batch.battype, Operator= Equal, Value= A. If any of the correcting transactions affect accounts/subaccounts used in Allocations, rerun the Generate Allocations process. The Trial Balance and Detail General Ledger reports can be run to verify the accuracy of the account balances. P : 855.MIG.CORP ( ) E : info@mig.com Page 29 of 31

30 Print and review the financial statements using Management Reporter, FRx or your statement generation application. On Balance Sheet reports, verify that Total Assets equals Total Liabilities and Equity. On Income Statement reports, verify that Net Income (Loss) equals the amount shown on the Trial Balance Report. Verify other key numbers on the statements such as total revenue, gross profit, current assets and current liabilities. After verifying the accuracy of the reports, the year-end closing process is ready to be run. After completing the year-end closing process, back up the database. The year-end closing process will do the following: o Set the current period to the first period of the new fiscal year. o Establish the New Year s beginning balances for the asset and liability accounts. o Zero the income and expense accounts and close the Year to Date Net Income account into the Retained Earnings Account. o Retain the year s period to date and year to date history. P : 855.MIG.CORP ( ) E : info@mig.com Page 30 of 31

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