Prepared by Sheri Carney
1400 Talbot Road South, Suite 301 | Renton, WA 98055 | 425.277.4760 | www.resgroup.com
RG Connect 2012
50 Tips for Closing Year End with Confidence
Microsoft Dynamics GP 2010
October.11.2012
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Contents
PAYROLL TIPS ............................................................................................................................. 3
INVENTORY TIPS ......................................................................................................................... 5
RECEIVABLES MANAGEMENT TIPS .................................................................................................. 6
PAYABLES MANAGEMENT TIPS ....................................................................................................... 7
TAX YEAR END TIP ..................................................................................................................... 10
FIXED ASSETS TIPS ................................................................................................................... 10
GENERAL LEDGER TIPS .............................................................................................................. 12
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1) Attend the Year End Procedures in Microsoft Dynamics GP class held at The Resource Group on Dec 11th and Dec 20th – register at www.resgroup.com/training
2) Remember that Year End is also another Month End – complete your monthly closing prior to closing
the year
3) Close fiscal periods after reconciling months to prevent further posting Administration Pane – SETUP-COMPANY-FISCAL PERIODS
4) Make LOTS of backups throughout your process to prevent loss of work
5) Create new fiscal year prior to performing Year End Administration Pane – SETUP-COMPANY-FISCAL PERIODS
PAYROLL TIPS
6) Make backups after each update and after W2 edits
7) Download and install the Payroll Year End Update as soon as it is released and definitely prior to
creating the Year End Wage file (https://mbs.microsoft.com/customersource)
8) Verify any 3rd party and custom software will be compatible with the new dictionary version prior to installing the Payroll Year End Update
9) Keep everyone logged out of GP until after the Payroll Year End Update is installed everywhere
10) Install the Payroll Year End Update on the server and EVERY workstation with GP – payroll users or not
11) Success of Payroll Year End Update installation can be confirmed on the Payroll Setup window –
verify Last Year-End Update date at the bottom matches the release date Payroll Pane – SETUP-PAYROLL-PAYROLL
12) Payroll Tax Update for new year can be installed any time after the Year End Wage file has been
created
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13) Download the Payroll Tax Update automatically from within Microsoft Dynamics GP (requires ‘sa’ login) Microsoft Dynamics GP dropdown menu – MAINTENANCE-US PAYROLL UPDATES-CHECK FOR
TAX UPDATES
14) Automated Payroll Tax Update requires Authorization Number – if you don’t know yours, you can find
it on your Customer Summary page in on the CustomerSource website, or you can call your
Customer Account Manager at The Resource Group (425) 277-4760 and they can obtain it for you
15) Success of Payroll Tax Update can be confirmed on the Payroll Tax Setup window – verify Last Tax Update at the top right matches the release date
Administration Pane – SETUP-SYSTEM-PAYROLL TAX
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16) When printing W2s – be sure to select the correct Form Type (ie not Continuous!) or your alignment will be off
Payroll Pane – ROUTINES-PAYROLL-PRINT W-2S
INVENTORY TIPS
17) Make backups
18) Year End for Inventory must be done before any transactions for the new year have been posted, but
you can enter and save transactions to batches prior to closing
19) Run an Inventory Reconcile to ensure your Inventory data has not become damaged over the course of the year
Inventory Pane – UTILITIES-RECONCILE
20) No report prints after processing the Inventory Year End close
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RECEIVABLES MANAGEMENT TIPS 21) Use Write Off Documents routine to clean up minor over/under payments
Sales Pane – ROUTINES-WRITE OFF DOCUMENTS
22) Use GL reconciliation tool for AR to GL reconciling
Financial Pane – ROUTINES-FINANCIAL-RECONCILE TO GL
23) Calendar Year End Close affects SmartList YTD and LYR fields and is not date sensitive – therefore it needs to be
done after current year transactions have all been posted and prior to posting new year’s transactions
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24) To determine what makes up the amount in a “YTD” field in Sales-related SmartList fields, open the Year-End Close window to verify the Calendar Last Closing Date. All “YTD” fields in SmartList will
include everything that has been posted since that date. Sales Pane – ROUTINES-YEAR-END-CLOSE
PAYABLES MANAGEMENT TIPS
25) Use GL reconciliation tool for AP to GL reconciling Financial Pane – ROUTINES-FINANCIAL-RECONCILE TO GL
26) Calendar Year End Close affects SmartList YTD and LYR fields and is not date sensitive – therefore it needs
to be done after current year transactions have all been posted and prior to posting new year’s transactions
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27) To determine what makes up the amount in a “YTD” field in Purchasing-related SmartList fields, open the Year-End Close window to verify the Calendar Last Closing Date. All “YTD” fields in SmartList will
include everything that has been posted since that date. Purchasing Pane – ROUTINES-YEAR-END CLOSE
28) When printing 1099s, be sure to change Form Type to Single Feed or alignment will be off
Purchasing Pane – ROUTINES-PRINT 1099
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29) 1099 amounts can be edited in the 1099 Details window (only by Month) Purchasing Pane – CARDS-1099 DETAILS
30) If a vendor is not available in the 1099 Detail window, that means their Vendor Maintenance card
does not have a 1099 Tax Type assigned
Purchasing Pane – CARDS-VENDOR-Options button
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31) Microsoft Dynamics GP provides a default SmartList favorite to show current 1099 vendors
SMARTLIST – PURCHASING-VENDORS-1099 VENDORS*
TAX YEAR END TIP
32) There is an optional Tax Year End close that will reset the current accumulated values for all of the defined Tax Details – do not do until after year end procedures have been completed for Receivables
and Payables
Administration Pane – ROUTINES-COMPANY-TAX YEAR-END CLOSE
FIXED ASSETS TIPS
33) Complete Payables year end close process first to ensure all transactions are posted and capitalized in Fixed Assets
34) Make sure to process the GL Posting for the year, in order to send all Fixed Assets activity to the General Ledger Financial Pane – ROUTINES-FIXED ASSETS-GL POSTING
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35) Ensure the Fixed Assets Calendar is built correctly
Financial Pane – UTILITIES-FIXED ASSETS-BUILD CALENDAR (Inquire then Verify)
36) Make a Backup that is then labeled and saved. YTD Depreciation is zeroed out during the Year End
process and there is not an ability to run prior year depreciation reports after year end close is performed (GP 2013 addresses this – FINALLY!!!)
37) Verify only one year closed by going back into the Year End close window and checking the year of the Available Books
Financial Pane – ROUTINES-FIXED ASSETS-YEAR END
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GENERAL LEDGER TIPS 38) Close the GL after closing all other modules you intend to close
39) Verify ample disk space (there is a need for free disk space equaling the size of the GL20000 table)
40) Create SmartList favorites to help verify posting types
SMARTLIST – FINANCIAL-ACCOUNTS
Using Search, limit the range of accounts to be only Balance Sheet accounts, and then set the Posting Type to Profit and Loss and click on OK. Any returned rows would represent misclassified Balance Sheet
accounts.
Create another search of the latter half of the chart of accounts with a Posting Type value of Balance
Sheet to show misclassified Profit and Loss accounts.
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41) Microsoft recommends running Check Links on the entire Financial series – this may take some time and can be done days/weeks in advance of the Year End close
Microsoft Dynamics GP dropdown menu – MAINTENANCE-CHECK LINKS
42) Verify correct settings for Retained Earnings account and maintaining history selection
Financial Pane – SETUP-FINANCIAL-GENERAL LEDGER
43) Print a detailed trial balance
44) Make a backup!!
45) Do NOT click the Close Year button more than once!
46) Processing may seem to freeze at 50% - DO NOT reboot – your computer did not freeze. As long as your hard drive is processing, let it continue
47) If your closing takes a while to process, be sure backups, virus scans or auto logoffs are not
scheduled to take place during process
48) The Year End Closing Report is one of the only reports in GP that cannot be reprinted – be sure you
are connected to a printer with paper/ink or printing to a valid file
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49) Adjusting entries CAN be posted to your most recent closed year! Verify Allow Posting to History is marked in General Ledger Setup and Fiscal Period is open.
Financial Pane – SETUP-FINANCIAL-GENERAL LEDGER
Administration Pane – SETUP-COMPANY-FISCAL PERIODS
50) If posting to a closed year, a second closing entry is automatically created at the same time and
displayed on the posting journal
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BONUS TIP
51) If you discover AFTER you closed your year that you had an account with the wrong posting type,
follow the instructions below to correct:
Profit and Loss Account Set Up as a Balance Sheet Account
If you have a Profit and Loss Account set up as a Balance Sheet Account, the Profit and Loss Account will
have a Beginning Balance after the Year-End Close.
To correct this situation use the following steps:
1. Make a full backup.
2. Be sure that the account is still set to the INCORRECT Posting Type (Financial Pane: CARDS-FINANCIAL-ACCOUNT).
3. If Multicurreny is a registered module, go to the Multicurrency Setup window (Financial Pane: SETUP-FINANCIAL-MULTICURRENCY) and unmark Maintain History for General Ledger Account:
Note: If you are not registered for Multicurrency, run the following statement in SQL against the Company database:
UPDATE MC40000 SET MNSUMHST=0
4. Unmark Maintain History for Accounts and Transactions in the General Ledger Setup window (Financial
Pane: SETUP-FINANCIAL-GENERAL LEDGER).
5. In this same window, be sure Allow Posting to History is marked. Choose OK to save the changes.
6. Make sure the fiscal period is open (Administration Pane: SETUP-COMPANY-FISCAL PERIODS).
7. Enter the appropriate journal entry (Financial Pane: TRANSACTIONS-FINANCIAL-GENERAL). Be sure
the transaction date is in the closed year so that the entry goes into history.
For example, if the Profit and Loss Account has a Debit Beginning Balance after the Year-End Close, you
would make an entry similar to the one that follows: Debit Retained Earnings and Credit Profit and Loss Account. Enter one transaction for each Account with an incorrect Posting Type.
8. Click Post to post the transaction(s). The posting procedure will only affect the current year because the
maintaining history options have been turned off. It will post a Beginning Balance transaction into the new year, therefore the Accounts will now have the correct balances.
9. Remark Maintain History for Accounts and Transactions in the General Ledger Setup window (Financial
Pane: SETUP-FINANCIAL-GENERAL LEDGER).
10. In this same window, be sure that Allow Posting to History is set correctly. Choose OK to save the changes.
11. If Multicurrency is a registered module, go to Multicurrency Setup (Financial Pane: SETUP-
FINANCIAL-MULTICURRENCY) and remark to Maintain History for General Ledger Account.
If Multicurrency is not registered, run the following statement in SQL against the Company database:
UPDATE MC40000 SET MNSUMHST=1
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12. Change the Posting Type for the Account to the correct one in the Account Maintenance window (Financial Pane: CARDS-FINANCIAL-ACCOUNT).
Balance Sheet Account Set Up as a Profit and Loss Account
If you have a Balance Sheet Account set up as a Profit and Loss Account, the Balance Sheet Account will
have a Beginning Balance of ZERO after the Year-End Close.
To correct this situation use the following steps:
1. Make a full backup.
2. Be sure that the Account is set to the CORRECT Posting Type (Financial Pane: CARDS-FINANCIAL-ACCOUNT).
3. If Multicurreny is a registered module, go to the Multicurrency Setup window (Financial Pane: SETUP-
FINANCIAL-MULTICURRENCY) and unmark Maintain History for General Ledger Account:
Note: If you are not registered for Multicurrency, run the following statement in SQL against the Company database:
UPDATE MC40000 SET MNSUMHST=0
4. Unmark Maintain History for Accounts and Transactions in the General Ledger Setup window (Financial
Pane: SETUP-FINANCIAL-GENERAL LEDGER).
5. In this same window, be sure Allow Posting to History is marked. Choose OK to save the changes.
6. Make sure the fiscal period is open (Administration Pane: SETUP-COMPANY-FISCAL PERIODS).
7. Enter the appropriate journal entry (Financial Pane: TRANSACTIONS-FINANCIAL-GENERAL). Be sure
the transaction date is in the closed year so that the entry will update Beginning Balances.
For example, if the Balance Sheet Account should have a Debit Beginning Balance, you would make an entry similar to the one that follows: Debit the Balance Sheet Account and Credit the Retained Earnings
Account. Enter one transaction for each Account that had an incorrect Posting Type.
8. Click Post to post the transaction(s). The posting procedure will only affect the current year since the
maintaining history options have been turned off. It will post a Beginning Balance transaction into the new year, therefore the Accounts will now have the correct balances.
9. Remark Maintain History for Accounts and Transactions in the General Ledger Setup window (Financial
Pane: SETUP-FINANCIAL-GENERAL LEDGER).
10. In the same window, be sure that Allow Posting to History is set correctly. Choose OK to save your changes.
11. If Multicurrency is a registered module, go to Multicurrency Setup (Financial Pane: SETUP-
FINANCIAL-MULTICURRENCY) and remark to Maintain History for General Ledger Account.
If Multicurrency is not registered, run the following statement in SQL against the Company database:
UPDATE MC40000 SET MNSUMHST=1
