Year End Closing Procedures for. Microsoft Dynamics GP. Martin & Associates

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1 Year End Closing Procedures for 2017 Microsoft Dynamics GP Martin & Associates

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3 Table of Contents Year-End Closing procedures in Inventory Control in Microsoft Dynamics GP... 3 Inventory year-end closing procedures... 3 Summary steps... 4 Inventory year-end closing tips... 7 Inventory year-end frequently asked questions... 9 Year end closing procedures for Receivables Management in Microsoft Dynamics GP Year end closing checklist Year to date finance charges on customer statements for December and for January Year end closing procedures for the Payables Management module in Microsoft Dynamics GP Payables Management master year end closing checklist Payables Management calendar year end closing checklist Payables Management fiscal year end closing checklist Detailed information for each step in the year end checklist Frequently asked questions The year end closing procedures for the Fixed Asset Management module in Microsoft Dynamics GP Year end checklist Frequently asked questions (FAQ) Year end closing procedures for General Ledger in Microsoft Dynamics GP Year end closing checklist Frequently Asked Questions

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5 Year-End Closing procedures in Inventory Control in Microsoft Dynamics GP This article discusses how to close the year and how to prepare your inventory records for the new fiscal year in Inventory Control in Microsoft Dynamics GP. Inventory year-end closing procedures Follow these steps to close the year and to prepare your inventory records for the new fiscal year. Closing a year transfers all summarized current-year quantity (cost and sales amounts) to transaction history for the items for which you have been keeping a summarized Sales History. The Quantity Sold field for each item is set to zero. These steps also update the amount in each item's Beginning Quantity field to the Quantity on Hand field at each site. Summary steps Post all transactions for the year. Reconcile inventory quantities. Complete a physical inventory count, and then post any adjustments. Print additional reports. Make a backup. Close the year. Close the fiscal periods for the Inventory series (optional). Make a final backup. Detailed steps 1. Post all transactions for the year. Make sure that all Invoicing transactions, Sales Order Processing transactions, and Inventory transactions for the current year have been entered and then posted before you close the year. This is true so that historical information is accurate for the year you are closing, and year-to-date amounts are accurately stated for the new year. If you want to enter future-period transactions before closing the year, create a new batch that has new transactions. However, do not post the batch until after the year has been closed. 2. Reconcile inventory quantities. 3

6 Reconcile quantities for all items by using the Reconcile Inventory Quantities window to make sure that your Inventory Control data has not become damaged during the year. To open the Reconcile Inventory Quantities window, follow this step: o In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Utilities, point to Inventory, and then click Reconcile. If any differences are found during the reconcile process, the quantities will be adjusted. If adjustments are made, they will be reflected on the Reconcile Report. Additionally, any serial numbers and lot numbers that were added for the adjusted items are included. If you want to change these serial numbers and lot numbers, you can use the Item Transaction Entry window. Enter decrease adjustment transactions to remove the existing serial numbers and the existing lot numbers. Then, enter increase adjustment transactions to enter the correct serial numbers and the correct lot numbers. To open the Item Transaction Entry window, point to Inventory on the Transactions menu, and then click Transaction Entry. 3. Complete a physical inventory count, and then post any adjustments. 1. Use the Stock Calendar Maintenance window to set up and then maintain information about when stock counts can be performed and about which days will be counted when the system calculates suggested dates for the next stock count for a specific item-site combination. To open the Stock Calendar Maintenance window, follow this step: In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Inventory, and then click Stock Calendar. 2. The Stock Count Cycle Assignment window can be used if you want to assign one stock count frequency to many items. To open the Stock Count Cycle Assignment window, point to Inventory on the Cards menu, and then click Count Cycle Assignment. 3. Create a Stock Count Schedule. A Stock Count Schedule is a list of the specific items at a specific site that will be counted during a specific count. When you start a stock count schedule, the quantity on hand for each line in the stock count schedule is captured. Later, the actual count number quantities will be compared to the captured values to create default variance transactions. Stock Count Forms can be printed during this process. To open the Stock Count Schedule window, point to Inventory on the Transactions menu, and then click Stock Count Schedule. 4. Use the Stock Count Entry window to enter information about the results of your stock counts. When you process a stock count, variance transactions are created. If the Autopost Stock Count Variances check box is selected, the transactions will also be posted. To open the Stock Count Entry window, point to Inventory on the Transactions menu, and then click Stock Count Entry. Instead of following step 3, you can manually create your adjusting entries. To do this, print a Physical Inventory Checklist by using the Inventory Activity Reports window, and then perform a physical count of your Inventory Items to verify that quantity on hand amounts are accurate for all Items. To open the Inventory Activity Reports window, point to Inventory on the Reports menu, and then click Activity. If there are any differences, enter the necessary adjustments in the Item Transaction Entry window, and then post the transactions. To open the Item Transaction Entry window, point to Inventory on the Transactions menu, and then click Transaction Entry. 4

7 4. Print additional reports. Print any additional reports that you will need for planning or for your permanent records. The suggested reports are as follows: o Stock Status Report o Purchase Receipts Report o Turnover Report o Transaction History Report o Serial Number List o Lot Number List To access the Reports palette, point to Inventory on the Reports menu. Use selections from the Inventory Reports palette to print these reports. If you plan to remove sold purchase receipts during the year-end closing process, we recommend that you print the Purchase Receipts Report to review the receipts that will be removed. 5. Make a backup. Make a backup of all company data. This is true so that you will be able to recover quickly should a power fluctuation or other problem occur during the year-end closing procedure. 6. Close the year. Closing a year performs the following tasks: o o o o o o o Transfers all summarized current-year quantity (cost and sales amounts) to transaction history for the Items for which you have been keeping summarized sales history. Updates the amount in the item's Beginning Quantity field to the Quantity on Hand field at each site. Certain reports, such as the Turnover Report, use the amount in the Beginning Quantity field for report calculations. Zeros the Quantity Sold field in Item Quantities Maintenance window for each site. Removes purchase receipts and cost change history for items that have been completely sold. o Removes any discontinued items from the Item records that have been completely sold. Removes any lot attributes from the records of lot numbered items if they have been completely sold. Updates the standard cost of each item to the current cost if you use either the FIFO periodic method or the LIFO periodic valuation method. Uses the Inventory Year-End Closing window to close the year. The following options are available: o Remove discontinued items If you click to select the Discontinued Items check box, all discontinued Items that have a zero balance will be removed during the year-end closing process. Items can be designated as discontinued by using the Item Maintenance window. Discontinued Items that have a quantity on hand of zero (except for kit components) and have no unposted transactions will be completely removed from the Inventory module. If you use the Service Call Management module, determine whether any discontinued items exist on any unposted service documents. If discontinued items exist on any unposted service documents, the documents must be posted before you continue. The Sales Order Processing report, the Invoicing report, or the Purchase Order Processing report and inquiries will still be able to display information about these discontinued items. However, 5

8 you will be unable to perform a lookup on the Item Number because it has been removed from the Item Master table. If you want to print a report or inquire on the discontinued Item, you must include the item within the Item Number range. Note: If you select this option, you will remove the discontinued items. Additionally, you will remove all inventory history for the items. You will be unable to drill back on the inventory history for these items. o Remove sold receipts If you click to select the Sold Receipts check box, all sold receipts whose quantity received amounts and quantity sold amounts are equal will be removed. This is an optional step, and it may not be a procedure that is performed every year-end. These values may help when items are returned through Invoicing. Therefore, you may not want to remove the purchase receipts from the file. In Microsoft Dynamics GP, remove: Sold Receipts and Cost Change History Prior To. Click to select the 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, Last In, First Out (LIFO) Perpetual, or the First In, First Out (FIFO) Periodic valuation method, and then you enter a date. The sold receipts, quantity sold details, and historical cost changes with dates that come before the date that you entered will be removed. o Remove sold lot attributes If you click to select the Sold Lot Attributes check box, values for completely sold lot numbers will be removed. For example, you can remove the value red for the lot attribute Color if you have sold all lot numbered items that have been assigned the value red. o Update an item's standard cost If you click to select the Item's Standard Cost check box, the Standard Cost for any items that have been assigned the FIFO periodic valuation method or the LIFO periodic valuation method will be adjusted automatically to reflect each item's current cost or the amount you most recently paid for the item. If you are registered for the Manufacturing module, you will be unable to select the Item's Standard Cost check box. For more information, click the following article number to view the article in the Microsoft Knowledge Base: NOTE: When you select to update an item's standard cost during the Inventory Year-End Closing process for Standard Cost Items, you must have the Standard Cost Revaluation Account populated in one of the two locations listed below in order for the Year-End Close process to complete. If you don't have the account populated the Exception Report will print with the list of items that need to be populated before you will be able to process the year-end closing. 1) Cards > Inventory > Item > Account (for each periodic item) 2) Microsoft Dynamics GP > Tools > Setup > Posting > Posting Accounts > Inventory series. 6

9 When the year is being closed, you will be unable to post, reconcile quantities, change valuation methods, or change decimal places for items. 7. Close the fiscal periods for the Inventory series (optional). You can use the Fiscal Periods Setup window to close fiscal periods that are still open for the year. To open the Fiscal Periods Setup window, follow this step: o In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods. This keeps transactions from accidentally being posted to the wrong period or year. Make sure that you have posted all transactions for the period and year for all modules before closing fiscal periods. If you later have to post transactions to a fiscal period you have already closed, you must return to the Fiscal Periods Setup window to reopen the period before you can post the transaction. 8. Make a final backup. Make a final backup of the company data files and keep it in safe, permanent storage. This gives you a permanent record of the company's financial position at the time that you closed the year. Inventory year-end closing tips The year-end close must be done before any transactions for the new year have been posted. You have the option to select the Discontinued Items check box, the Sold Receipts check box, or the Sold Lot Attributes check box. If you select these check boxes, all items, sold receipts, and sold lot attributes that have a zero balance will be removed during the year-end closing process. If you select the Update Item's Standard Cost check box, the standard cost for any items that have been assigned the FIFO periodic valuation method or the LIFO periodic valuation method will be adjusted automatically to reflect each item's current cost. The current cost is the amount that you most recently paid for the Item. There is no Year End Closing report for Inventory. Inventory year-end frequently asked questions Q1: How is the average cost of an item updated throughout the year and during the year-end closing process when you use the Average Perpetual valuation method? A1: If you are using the Average Perpetual valuation method, all receipts for each item will be averaged to determine the average cost. The year-end closing process does not change the average cost. However, it will remove the purchase receipts that have been completely sold. The next time that a receipt is entered, the average cost will be revalued with the receipts that remain in the Inventory Purchase Receipts file. Note: In Microsoft Dynamics GP 9.0, enhancements were made to the calculation of the average cost that would still apply. Q2: Can the Inventory Year-End Closing window be used throughout the year to update the standard cost of items if you use the Periodic valuation method? 7

10 A2: We do not recommend this because the Beginning Quantity field is updated during the year-end closing process. This would make that field incorrect on reports such as the Turnover report. In addition, all summary sales history information would be incorrectly moved to the following year. Q3: What is the effect of doing a late inventory year-end close in Great Plains? A3: Year-end closing for this module is optional. In summary, the fields that are updated during year-end closing are mainly used in reports for quantity summaries. If these fields are not important, you may decide not to run year-end closing. The inventory year-end close moves the summary history information from the current year to last year (as seen under Cards/Inventory/History), and zeroes out the current year information. We recommend that you close the inventory module before you post sales and purchase transactions in the new year because, if you do this, the item's history numbers will not be accurate (as seen under Cards/Inventory/History.) Also, the Inventory Turnover Report may not be accurate, because the item's beginning quantities for the year will not be accurate. To illustrate, say you sold 100 items in Then, you sold 10 additional items in You posted both these inventory transactions in 2018 before doing 2017 yearend close for inventory, so you will have a quantity sold of 110 in After the 2017 year end close is performed, you will have a value of 0 instead of 10 for your 2018 (Current Year) Sales Quantity and 110 showing for your 2017 (Last Year) Sales Quantity. The summary windows in inventory with the specific views of calendar or fiscal year are date-sensitive. The inventory year end close process is not date-sensitive. 8

11 Year-end closing procedures for Receivables Management in Microsoft Dynamics GP Note: Before you follow the instructions in this article, make sure that you have a complete backup copy of the database that you can restore if a problem occurs. This article contains checklists for the year-end closing process in Receivables Management in Microsoft Dynamics GP. This article also contains detailed information for each step in the year-end closing process. And, this article describes how to add the year-to-date finance charge information to customer statements for December and for January. Read this article before you perform one or more of the procedures. Year-end closing checklist You can use this checklist for the end of the fiscal year and for the end of the calendar year. Note: Although Receivables Management is date sensitive, the following items are updated based on the closing of Receivables Management: The SmartList objects The Receivables Management summary reports The Amounts Since Last Close view in the Customer Summary window Therefore, we recommend that you follow these steps so that the SmartList objects, the Receivables Management summary reports, and the Amounts Since Last Close view contain the correct information: 1. Post all the sales and receivables transactions for the year. 2. Make a pre-year-end closing backup. 3. Close the year. 4. Close the fiscal periods. (This step is optional.) 5. Close the tax year. 6. Make a post-year-end closing backup. Step 1: Post all the sales and receivables transactions for the year Post all the sales and receivables transactions for the year before you close the year. If you want to enter any sales and receivables transactions for a future period before you close the year, create a batch that contains the transactions. Next, save the batch. Then, post the batch after you close the year. You must close the year because some areas of Microsoft Dynamics GP are not date sensitive. If you do not close the year after you enter all the current year transactions and before you enter transactions for the next year, these areas will contain incorrect information. However, if you have to change the information, you can change the information in the Amounts Since Last Close view in the Customer Summary window and in the Customer Finance Charge Summary window. The following areas are the areas of Microsoft Dynamics GP that are not date sensitive. The Amounts Since Last Close view in the Customer Summary window 9

12 To open the Amounts Since Last Close view in the Customer Summary window, follow these steps: 1. On the Cards menu, point to Sales, and then click Summary. 2. In the Customer Summary window, type a customer ID in the Customer ID box. 3. In the Summary View list, click Amounts Since Last Close. The Customer Finance Charge Summary window To open the Customer Finance Charge Summary window, follow these steps: 1. On the Cards menu, point to Sales, and then click Summary. 2. In the Customer Summary window, type a customer ID in the Customer ID field. 3. Click Finance Charges. The SmartList objects To view the SmartList columns that are affected, follow these steps: 1. In Microsoft Dynamics GP, click Columns on the Microsoft Dynamics GP menu, click SmartList, expand Sales, expand Customers, and then click Add. 2. Select the following items in the Available Columns list. Note: The items that are flagged with an asterisk are affected by the calendar year-end close. All the other items are affected by the fiscal year-end close. Average Days to Pay - Year Finance Charges CYTD* Finance Charges LYR Calendar* High Balance LYR High Balance YTD Number of ADTP Documents - LYR Number of ADTP Documents - Year Number of NSF Checks YTD Total # FC LYR* Total # FC YTD* Total # Invoices LYR Total # Invoices YTD Total Amount of NSF Check YTD Total Bad Debt LYR Total Bad Debt YTD Total Cash Received LYR Total Cash Received YTD Total Discounts Available YTD Total Discounts Taken LYR Total Discounts Taken YTD Total Finance Charges LYR* Total Finance Charges YTD* Total Returns LYR Total Returns YTD Total Sales LYR Total Sales YTD Total Waived FC LYR* Total Waived FC YTD* Total Writeoffs LYR Total Writeoffs YTD 10

13 Unpaid Finance Charges YTD* Write Offs LYR Write Offs YTD 3. Click OK. 4. Click OK. Step 2: Make a pre-year-end closing backup Create a backup before you close the year. Put the backup in safe, permanent storage. This backup makes sure that you have a permanent record of the company's financial position at the end of the year. You can restore information from this backup if you have to. For example, this backup would let you quickly recover if a power fluctuation or another problem occurred during the year-end close procedure. To create a backup in Microsoft Dynamics GP, follow these steps: 1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup. 2. In the Back Up Company window, select the company name in the Company Name list. 3. Change the path of the backup file if it is required, and then click OK. Note: We recommend that you name this backup PreYearEndClosingBackup20XX. (Enter the year for the XX placeholder.) Step 3: Close the year 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Sales, and then click Year-End Close. 2. If you are closing both the fiscal year and the calendar year at the same time, click All. If you are closing only the calendar year, click Calendar. If you are closing only the fiscal year, click Fiscal. 3. Click to select the Print Report check box, and then click Close Year. Note: We recommend that you keep a paper copy of the year-end report together with the permanent year-end audit records. Calendar year details The calendar year-end process in Microsoft Dynamics GP clears the following fields in the Customer Summary window: Finance Charges CYTD Total # FC YTD Total Finance Charges YTD Total Waived FC YTD Unpaid Finance Charges YTD The calendar year-end process updates the amounts in the following fields: *Finance Charges LYR Calendar *Total # FC LYR Fiscal year details The fiscal year-end process in Microsoft Dynamics GP clears the following fields in the Customer Summary window: 11

14 Average Days to Pay - Year High Balance YTD Number of ADTP Documents - Year Number of NSF Checks YTD Total # Invoices YTD Total Amount of NSF Check YTD Total Bad Debt YTD Total Cash Received YTD Total Discounts Available YTD Total Discounts Taken YTD Total Returns YTD Total Sales YTD Total Writeoffs YTD Write Offs YTD The fiscal year-end process updates the amounts in the following fields: High Balance LYR Number of ADTP Documents - LYR Total # Invoices LYR Total Bad Debt LYR Total Cash Received LYR Total Discounts Taken LYR Total Returns LYR Total Sales LYR Total Writeoffs LYR Write Offs LYR Step 4: Close the fiscal periods (This step is optional) To prevent users from accidentally posting transactions to the wrong period or to the wrong year, use the Fiscal Periods Setup window to close all fiscal periods that are still open for the year. Before you close fiscal periods, verify that you have posted all the transactions for the period and for the year for all modules. If you must later post transactions to a fiscal period that you already closed, you can return to the Fiscal Periods Setup window to reopen the period so that you can post the transactions. To close a fiscal period, follow these steps: 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods. 2. Click to select the Sales check box for the period that you want to close. Step 5: Close the tax year Note: Follow these steps only after you complete the year-end closing procedures for all the sales and purchasing modules. To close the tax year, follow these steps: 12

15 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Company, and then click Tax Year-End Close. 2. Click to select the Close Year check box, and then click to select the Print Report check box. 3. Click Process. Note: We recommend that you keep a paper copy of the year-end report together with the permanent year-end audit records. Step 6: Make a post-year-end closing backup Create a backup after you close the year. Put the backup in safe, permanent storage. This backup makes sure that you have a permanent record of the company's financial position at the end of the year. You can restore information from this backup if you have to. For example, this backup would let you quickly recover if a power fluctuation or another problem occurred during the year-end close procedure. To create a backup in Microsoft Dynamics GP, follow these steps: 1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup. 2. In the Back Up Company window, click the company name in the Company Name list. 3. Change the path of the backup file if it is required, and then click OK. Note: We recommend that you name this backup PostYearEndClosingBackup20XX. (Enter the year for the XX placeholder.) Year-to-date finance charges on customer statements for December and for January Year-to-date finance charges are not automatically printed on customer statements for December and for January. December statements To add the year-to-date finance charges to the December statements, follow these steps: 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Customize, and then click Report Writer. 2. In the Product list, click Microsoft Dynamics GP, and then click OK. 3. Click Reports. 4. Use the appropriate method: o If you have not previously modified the statement form, click the statement form that you print in the Original Reports list, click Insert, and then click the statement form in the Modified Reports list. o If you previously modified the statement form, click the statement form in the Modified Reports list. 5. Click Open. 6. In the Report Definition window, click Tables. 7. In the Report Table Relationships window, click RM Customer MSTR, and then click New. 8. In the Related Tables window, click Customer Master Summary, and then click OK. 9. Click Close. 10. Click Layout. 11. In the resource list in the Toolbox box, click Customer Master Summary. 12. In the field list, drag Finance Charges CYTD to the layout of the report. You can position this field in any section of the report. 13. On the File menu, click Microsoft Dynamics GP. When you are prompted to save the changes, click Save. 13

16 14. If you have not previously modified this report, you must grant security to the report. To do this, use the steps below: January statements 1. On the Microsoft Dynamics GP menu, point to Tools, point to Setup, point to Systems, and then click Alternate/Modified Forms and Reports. 2. In the ID box, enter the user ID. 3. In the Product list, click Microsoft Dynamics GP. 4. In the Type list, click Reports. 5. Expand Sales, and then expand the node of the modified form. 6. Click Microsoft Dynamics GP (Modified). To add the year-to-date finance charges to the January statements, follow these steps: 1. Follow steps 1 through 11 in the "December statements" section. 2. In the field list, drag Finance Charges LYR Calendar to the layout of the report. You can position this field in any section of the report. 3. Follow steps 13 and 14 in the "December statements" section. 14

17 Year-end closing procedures for the Payables Management module in Microsoft Dynamics GP Note: Before you follow the instructions in this article, make sure that you have a complete backup copy of the database that you can restore if a problem occurs. This article describes the recommended year-end closing procedures for the Payables Management module in Microsoft Dynamics GP. The "More Information" section contains the following information: A checklist of the steps that you must follow to complete the calendar year-end closing procedures. A checklist of the steps that you must follow to complete the fiscal year-end closing procedures. Detailed information about each step in the checklists. A list of frequently asked questions. Read this whole article before you perform the steps. If you have questions, contact your Martin & Associates account rep. Payables Management master year-end closing checklist Note: Use this checklist if you are closing your fiscal year and your calendar year at the same time. 1. Post all transactions for the year. Print the Aged Trial Balance with Options report. 2. Print the Vendor Period Analysis Report 3. Install the Payroll year-end update (optional) 4. Make a backup that is named Pre-1099 Edits. 5. Verify the 1099 information and edit it if it is required. 6. Print the 1099 statements 7. Make a backup that is named Pre Year-End. 8. Close the year 9. Close the fiscal periods 10. Close the tax year 11. Make a backup that is named Post Year-End. Payables Management calendar year-end closing checklist Note: Although the Payables Management module is date-sensitive, the SmartList objects, the Payables Management summary reports, and the Amounts Since Last Close view of the Vendor Yearly Summary window are updated based on the closing of the Payables Management module. Therefore, we recommend that you follow these steps so that the SmartList objects, the Payables Management summary reports, and the Amounts Since Last Close view of the Vendor Yearly Summary window are correct. 1. Post all transactions for the calendar year. 2. Print the Aged Trial Balance with Options report. 3. Make a backup that is named "Pre-1099 Edits." 4. Verify the 1099 information and edit it if it is required. 5. Print the 1099 statements. 6. Make a backup that is named "Pre Year-End." 7. Close the calendar year. 8. Close the fiscal. 9. Close the tax year. 10. Make a backup that is named "Post Year-End." 15

18 Payables Management fiscal year-end closing checklist 1. Post all transactions for the fiscal year. 2. Print the Vendor Period Analysis Report. 3. Make a backup that is named "Pre Year-End." 4. Close the fiscal year. 5. Close the fiscal periods. 6. Make a backup that is named "Post Year-End." Detailed information for each step in the year-end checklist Step 1: Post all transactions for the year Post all transactions for the year before you close the year. If you want to enter future period transactions before you close the year, create a new batch for the future period transactions. Save the future period transactions in the new batch, but do not post the new batch until after the year has been closed. The following areas of Microsoft Dynamics GP are not date-sensitive: The Amounts Since Last Close view of the Vendor Yearly Summary window SmartList objects Vendor Summary reports These areas of Microsoft Dynamics GP will be incorrect if you do not close the payables year after you enter all current year transactions and before you enter any transactions for the new year. However, the Amounts Since Last Close view of the Vendor Yearly Summary window is editable. Therefore, you can update the information in the Amounts Since Last Close view of the Vendor Yearly Summary window if it is required. To access the Amounts Since Last Close view of the Vendor Yearly Summary window, follow these steps: 1. On the Cards menu, point to Purchasing, and then click Summary. 2. In the Vendor Credit Summary window, type a vendor ID in the Vendor ID field, and then click Yearly. 3. In the Summary View list, click Amounts Since Last Close. To view the SmartList columns that are affected, follow these steps: 1. Open SmartList. To do this in Microsoft Dynamics GP, click SmartList on the Microsoft Dynamics GP menu. 2. Expand the Purchasing node, and then click Vendors. 3. Click Columns. 4. Click Add. 5. Click the following fields in the Available Columns list. Note: The items flagged with an asterisk are affected by the calendar year-end close. All other items are affected by the fiscal year-end close. o *1099 Amount YTD o *1099 Amount LYR o Amount Billed YTD o Amount Billed LYR o Amount Paid YTD o Amount Paid LYR o Average Days To Pay - 16

19 Year o Discount Available LYR o Discount Available YTD o Discount Lost LYR o Discount Lost YTD o Discount Taken LYR o Discount Taken YTD o Finance Charge LYR o Finance Chare YTD o Number of Finance Charges LYR o Number of Finance Charges YTD o Number of Invoice LYR o Number of Invoice YTD o Number of Paid Invoice YTD o Returns LYR o Returns YTD o Trade Discounts Taken LYR o Trade Discounts Taken YTD o Withholding LYR o Withholding YTD o Write Offs LYR o Write Offs YTD 6. Click OK. 7. Click OK. To view the Vendor Summary reports, follow these steps: 1. On the Reports menu, point to Purchasing, and then click Analysis. 2. In the Reports list, click Calendar Year. 3. In the Options list, click an option, and then click Print. Step 2: Print the Aged Trial Balance with Options report We recommend that you print a paper copy of the Aged Trial Balance with Options report to keep with your year-end permanent financial records. To do this, follow these steps: 1. On the Reports menu, point to Purchasing, and then click Trial Balance. 2. In the Reports list, click Aged Trial Balance with Options. Step 3: Print the Vendor Period Analysis report We recommend that you print a paper copy of the Vendor Period Analysis report to keep with your year-end permanent financial records. To do this, follow these steps 1. On the Reports menu, point to Purchasing, and then click Analysis. 2. In the Reports list, click Period. Step 4: Install the Payroll year-end update (optional) 17

20 If there are compliance changes for Payables Management, such as 1099 form changes, 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. Review the changes that are included in the Payroll year-end update. Step 5: Make a backup that is named "Pre-1099 Edits" Create a backup, and then put the backup in safe, permanent storage. A backup gives you a permanent record of the company's financial position at the end of the year, and this backup can be restored later if it is required. A backup lets you recover data quickly if a power fluctuation or other problem occurs during the year-end closing procedure. To create a backup in Microsoft Dynamics GP, follow these steps: 1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup. 2. In the Company Name list, click your company name. 3. Change the path of the backup file if it is required, and then click OK. Note: We recommend that you name this backup "Pre-1099 Edits" to differentiate it from your other backups. Step 6: Verify the 1099 information and edit it if it is required To print the 1099 edit list, follow these steps: 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing, and then click Print Enter the Company Information and Address ID. 3. Click on the printer icon in the upper right corner to print the 1099 Edit List. Review for accuracy. 4. If you need to edit any 1099 information, use one of the following methods (Method 1 and 2 is recommended for Microsoft Dynamics GP 2013 and higher versions): Method 1: (RECOMMENDED) Edit 1099 Transaction details (Applies to Microsoft Dynamics GP 2013 and higher versions) 1. Click on Transactions, point to Purchasing, and click on Edit 1099 Transaction Information. 2. Select the appropriate Vendor ID. (Only vendors set to be 1099able will be displayed in the window.) 3. You may restrict by Voucher Number, by Document Number or by Date, if desired. 4. Select if you want 1099 Debit Transactions, All Debit Transactions or All Credit Transactions. 5. The vendor's transaction detail will populate in the bottom of the window. For each transaction, you can edit the Tax Type, Box Number and Amount on open and historical transactions. Note: You may not enter a higher 1099 amount than the total amount of the document. 6. Click Process to have the changes made and the 1099 will be updated. 18

21 Method 2: VENDOR NOT MARKED CORRECTLY: (Applies to Microsoft Dynamics GP 2013 and higher versions) If you marked a vendor as 1099able and should not have, or you forgot to mark a vendor as 1099able at all, you can use the Update 1099 Information utility to change the 1099 status on the vendor and also to update the 1099 information. You can change a 1099 vendor to be non-1099 or visa versa. 1. Click on Tools under Microsoft Dynamics GP, point to Utilities, point to Purchasing, and click Update 1099 Information. 2. Mark the bullet for Vendor and 1099 Transactions. 3. In the FROM and TO sections enter the following: To change a vendor to be 1099able: select Not a 1099 Vendor in the FROM section, and select the appropriate 1099 type of Dividend, Interest or Miscellaneous, and the appropriate 1099 Box number in the TO section. (Miscellaneous and Box 7 Nonemployee Compensation is the most common.) To change a vendor to not be 1099able: Select the current Tax Type and 1099 Box Number that is selected on the Vendor Maintenance Options window for the vendor in the FROM section, and select Not a 1099 Vendor in the TO section. *If Not a 1099 Vendor is not an option in the drop-down lists, then either you are not on a GP version higher than Microsoft Dynamics GP 2013, or you did not select Vendor and 1099 Transactions as instructed in step Use the Range restriction to restrict to the Vendor ID that you wish to change and click INSERT. 5. Click Process. The vendor status will be updated on the Vendor Maintenance Options window, and the 1099 information will be updated appropriately. You can use the 1099 details window (see Method 1) to verify. Method 3: - Edit the 1099 directly (Use for Microsoft Dynamics GP 2010 and prior versions, but can work for all versions) (Note: The Reconcile utility for 1099 amounts would undo any edits you make using this method.) 1. On the Cards menu, point to Purchasing, and then click 1099 Details. 2. In the Vendor ID list, click a vendor ID. 3. In the Tax Type list, select one of the following: Dividend Interest Miscellaneous 4. In the Display area, click Month or Year, and then type 20XX in the Year field. (Enter the desired year for the 20XX placeholder.) 19

22 5. In the Amount column, type the correct 1099 amount. Click Save. Method 4: Edit the 1099 directly (Use for Microsoft Dynamics GP 2010 and prior versions, but can work for all versions) (Note: The Reconcile utility for 1099 Amounts would undo any edits you make using this method.) 1. On the Cards menu, point to Purchasing, and then click Summary. 2. In the Vendor ID list, click a vendor ID, and then click Period. 3. In the Year field, type 20XX. (Enter the desired year for the 20XX placeholder.) 4. In the Month/Period field, select the appropriate month or period. 5. Click the "1099 Details" blue expansion button that appears next to the 1099 Amount field. This 1099 Details window will open. 6. In the Amount column, type the correct 1099 amount for the respective box. 7. Press Save. Exist out of the remaining windows. Step 7: Print the 1099 statements Note: You can do this at any time. To print the 1099 statements, follow these steps: 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing, and then click Print In the 1099 Year field, type 20XX. (Enter the year for the 20XX placeholder.) 3. Each of your 1099 report types must be printed separately. In the Print 1099 window, click the options that you want in the 1099 Type field and in the 1099 Box Number field, and then click Print. The following table provides additional information about the fields on the 1099 form and where this information can be located in Microsoft Dynamics GP. Field window where data is located Payers name, street address, city, state, and ZIP Code/Postal Code Payers Federal Identification number Recipients name, address, and Zip Code/Postal Code Recipients identification number Print 1099 window Print 1099 window Primary Address of the Vendor Maintenance window Tax ID field of the Vendor Maintenance Options window Amounts for boxes 1-9 on the Dividend Form or 1-16 on the 1099 Amount field in the Vendor Yearly Miscellaneous Form Summary window Currently, Microsoft Dynamics GP does not handle magnetic media filing of state 1099s. The following Microsoft Dynamics Partner does offer compatible State W-2 and 1099 magnetic media products. For more information, contact: 20

23 Greenshades Accounting Software, Inc Belfort Parkway Suite 220 Jacksonville, FL General: (Toll-Free) Sales: x2 (Toll-Free) Step 8: Make a backup that is named "Pre Year-End" Create a backup, and then put the backup in safe, permanent storage. A backup gives you a permanent record of the company's financial position at the end of the year, and this backup can be restored later if it is required. A backup lets you recover data quickly if a power fluctuation or other problem occurs during the year-end closing procedure. To create a backup in Microsoft Dynamics GP, follow these steps: 1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup. 2. In the Company Name list, click your company name. 3. Change the path of the backup file if it is required, and then click OK. Note: We recommend that you name this backup "Pre Year-End" to differentiate it from your other backups. Step 9: Close the year To close the year, follow these steps: 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing, and then click Year-End Close. 2. If you are closing both your fiscal and calendar year at the same time, click All. If you are just closing your calendar year, click Calendar. If you are just closing your fiscal year, click Fiscal. 3. Click to select the Print Report check box, and then click Close Year. Note: We recommend that you keep a paper copy of the year-end report together with your permanent year-end audit records. To view the Vendor Yearly Summary window, follow these steps: 1. On the Cards menu, point to Purchasing, and then click Summary. 2. In the Vendor ID field, type a vendor ID to view, and then click Yearly. The calendar year details The calendar year-end process in Microsoft Dynamics GP will clear the 1099 Amount Year to Date field and then transfer the amount to the 1099 Amount Last Year field for the Amounts Since Last Close view of the Vendor Yearly Summary window. The fiscal year details The fiscal year-end process in Microsoft Dynamics GP will clear the following fields: Amount Billed YTD Amount Paid YTD Average Days To Pay - Year Discount Available YTD Discount Lost YTD 21

24 Discount Taken YTD Finance Charge YTD Number of Finance Charges YTD Number of Invoice YTD Number of Paid Invoice YTD Returns YTD Trade Discounts Taken YTD Withholding YTD Write Offs YTD The amounts in these fields will also be updated in the Amounts Since Last Close view of the Vendor Yearly Summary window: Amount Billed LYR Amount Paid LYR Discount Available LYR Discount Lost LYR Discount Taken LYR Finance Charge LYR Number of Finance Charges LYR Number of Invoice LYR Returns LYR Trade Discounts Taken LYR Withholding LYR Write Offs LYR Step 10: Close the fiscal periods You can use the Fiscal Periods Setup window to close any fiscal periods that are still open for the year. This prevents users from accidentally posting transactions to the wrong period or year. Verify that you have posted all transactions for the period and the year for all modules before closing fiscal periods. If you must later post transactions to a fiscal period that you have already closed, you can return to the Fiscal Periods Setup window to reopen the period before you can post a transaction. To close a fiscal period, follow these steps: 1. Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods. 2. Click to select the Purchasing check box for the Period that you must close. Step 11: Close the tax year Note: This procedure should only be completed after you have completed the year-end closing procedures for all sales and purchasing modules. To close the tax year, follow these steps: 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Company, and then click Tax Year-End Close. 2. Click to select the Close Year check box and the Print Report check box. 3. Click Process. When you are prompted to continue with the year-end close. Click Yes. 22

25 Note: We recommend that you keep a paper copy of the year-end report together with your permanent year-end audit records. Step 12: Make a backup that is named "Post Year-End" Create a backup, and then put the backup in safe, permanent storage. A backup gives you a permanent record of the company's financial position at the end of the year, and this backup can be restored later if it is required. A backup lets you recover data quickly if a power fluctuation or other problem occurs during the year-end closing procedure. To create a backup in Microsoft Dynamics GP, follow these steps: 1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup. 2. In the Company Name list, click your company name. 3. Change the path of the backup file if it is required, and then click OK. Note: We recommend that you name this backup "Post Year-End" to differentiate it from your other backups. Frequently asked questions Q1: Are inactive vendor records cleared during year-end closing? If not, how can inactive vendor records be removed? A1: No, inactive vendor records are not automatically removed. To remove an inactive vendor record, the following conditions must be true: No current year 1099 amounts exist for the vendor The vendor has no documents in work or history. To delete all inactive vendor records that fit these criteria, follow these steps: 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Utilities, point to Purchasing, and then click Mass Vendor Delete. 2. In the Range list, click by Vendor Status. 3. In the From list, click Inactive. 4. In the To list, click Inactive. 5. Click Process. Q2: What should I do if I must issue a check on January 1 for the next year, but I am not ready to close the current year yet? A2: Print the checks, but do not post them until 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. 23

26 The year-end closing procedures for the Fixed Asset Management module in Microsoft Dynamics GP Note: Before you follow the instructions in this article, make sure that you have a complete backup copy of the database that you can restore if a problem occurs. This document outlines the recommended year-end closing procedures for Fixed Asset Management in Microsoft Dynamics. This article includes a checklist of the steps that you must follow to complete these procedures. The "More information" section contains detailed information about each step. A series of frequently asked questions (FAQ) follows the description of the procedures. Read this document before you perform any of the following procedures. If you have any questions, contact your Martin & Associates account rep. Year-end checklist Step 1: Perform all the year-end closing procedures for Payables Management in Microsoft Dynamics GP Close Payables Management first. This action guarantees that all the outstanding fixed asset transactions are capitalized. Step 2: Enter all the fixed asset transactions for the current fiscal year Post all the additions, the changes, the transfers, and the retirements for the current fiscal year. Note: Transfers and undo retirement transactions should never be performed in a historical year. Step 3: Depreciate all assets through the last day of the current fiscal year 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Fixed Assets, and then click Depreciate. 2. In the Depreciation Target Date box, type the last date of the current fiscal year. 3. To insert all the fixed asset books, click All. 4. Click Depreciate. NOTE: It is very important to depreciate all assets through the last day of the current FA Fiscal Year. If all assets are not depreciated through the last day of the current FA Fiscal Year prior to processing the year-end-close, depreciation amounts will be incorrect. Please see Q3 and A3 in the FAQ section below for more information. Step 4: Perform the GL Posting (GL Interface) process (This step is optional.) 1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Fixed Assets, and then click GL Posting. 2. In the Beginning Period box, type Note: The placeholder represents period 12 of the fiscal year If you are not running on a calendar fiscal year, or if you have more than 12 periods, the period that you type would be different. 3. In the Ending Period box, type