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Dynamics GP 10 and 2010 year end closing procedures

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  • 1. Dynamics GP v10 or 2010Year End Close Procedures
  • 2. Table of ContentsTips for a Successful Year-End .................................................................................................................. 3 STEPS FOR YOUR PLANNING STAGE ..................................................................................................... 3 STEPS TO COMPLETE BEFORE YEAR-END .............................................................................................. 3Summary of Year-End Closing Procedures: .............................................................................................. 5 Create a Pre Year-End closing backup .................................................................................................. 5Close Inventory Management.................................................................................................................. 6 Summary steps .................................................................................................................................... 6 Detailed steps .................................................................................................................................. 6Inventory Year-End Q & A ...................................................................................................................... 10Close Receivables Management ............................................................................................................ 11 Confirm that the Receivables Management month end process steps have been completed. ........ 11 Summary steps .................................................................................................................................. 11 Detailed steps ................................................................................................................................ 11Receivables Management Year-End Closing Tips .................................................................................... 13Close Payables Management ................................................................................................................. 15 Confirm that the Payables Management month end process steps have been completed. ............. 15 Summary steps .................................................................................................................................. 15 Detailed steps ................................................................................................................................ 15Close Fixed Assets ................................................................................................................................. 21 Summary Steps:................................................................................................................................. 21 Detailed Steps................................................................................................................................ 21Multicurrency ........................................................................................................................................ 25 Closing a Year .................................................................................................................................... 25Closing a Year in General Ledger ............................................................................................................ 26 Summary steps .................................................................................................................................. 26 Detailed steps ................................................................................................................................ 27General Ledger Year-End Closing Tips .................................................................................................... 32General Ledger Year-End Q & A ............................................................................................................. 35ACE MICROTECHNOLOGY, INC. Page 2
  • 3. Tips for a Successful Year-EndYear-end is a very hectic time for everyone. At ACE we want to make sure that you get the bestsupport possible during this time. So, we have listed the following tips to help you prepare foryear-end.While we strive to have complete and accurate information, your best referral sources foryear-end issues will be CustomerSource located at http://www.microsoft.com/en-us/dynamics/default.aspx and the Microsoft Support Blog athttp://blogs.msdn.com/b/dynamicsgp/default.aspx?wa=wsignin1.0.CustomerSource is available to you if you are enrolled in an enhancement plan. Please checkCustomerSource for up-to-the-minute information for your year-end closing. Pay specialattention to Knowledge Base and Support Hot Topics.Also, you should review CustomerSource for a payroll tax update status. These updatesare only available on the internet. DO NOT WAIT UNTIL THE LAST MINUTE!!! After yourupdate is loaded, verify that the tax tables are updated. You can do this by comparing the taxschedules in the system (Setup >> System >> Payroll Tax) to those listed in the IRS publication(Circular E). Please make sure to use the Annual table for the comparison to the FED tax code.You will also need to verify the FICA tax cutoff for the Social Security portion in the FICAS taxcode. This extra step will provide assurance that the update affected the files correctly and thatemployee checks will have the proper amounts withheld for taxes. Please note that no tax orform updates for 9.x or below are available from Microsoft.STEPS FOR YOUR PLANNING STAGE  SELECT AN OPTIMAL TIME to do the year-end closing. Plan for adequate time before the next critical task needs to be performed.  DEVELOP A WORK PLAN – a detailed and step by step work plan for your year-end closing will help to ensure that no vital steps of the closing are left out.  DEVELOP A CONTINGENCY PLAN!! There can be instance where things might not proceed as planned. Please have a contingency plan established if such a situation should arise. This contingency plan MUST include having a complete backup of Dynamics GP and data that can be easily restored if it is necessary to get up and running again.STEPS TO COMPLETE BEFORE YEAR-END  Back up all existing data and code. Be sure this backup can be restored if necessary.  Perform Check Links procedures on all tables. This will ensure that data is at the highest integrity before you perform the year-end closing.ACE MICROTECHNOLOGY, INC. Page 3
  • 4.  Make a second backup after the year-end close. If you need to restore from a backup, you will have a backup after the year-end close that can be restored. If you do not make this backup, you would be forced to restore a backup from before your year-end closing and then redo the year- end closing again.Please note that the following modules do not have a year-end closing routine:Sales Order ProcessingPurchase Order ProcessingBank ReconciliationMulticurrencyHuman ResourcesProject AccountingService Call ManagementContract AdministrationPreventive MaintenanceFor procedures related to Payroll please contact ACE Support to obtain a copy of ourDynamics GP v10 or 2010 Payroll Period-End, Quarter-End and Year-End CloseProcedures documentACE MICROTECHNOLOGY, INC. Page 4
  • 5. Summary of Year-End Closing Procedures: 1. Create a Pre Year-End Closing Backup of all the Company SQL Database 2. Close Inventory Management 3. Close Receivables Management 4. Close Payables Management 5. Close General Ledger 6. Close Fixed Assets 7. Create a Post Year-End Closing Backup of the Company SQL DatabaseCreate a Pre Year-End closing backupCreate a backup before you close the year. Put the backup in safe, permanent storage. This backupmakes sure that you have a permanent record of the companys 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 youquickly 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. Use the appropriate method: o 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 PreYearEndClosingBackupYYYY.ACE MICROTECHNOLOGY, INC. Page 5
  • 6. Close Inventory ManagementFollow 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 transactionhistory for the items for which you have been keeping a summarized Sales History. The Quantity Soldfield for each item is set to zero. These steps also update the amount in each items Beginning Quantityfield to the Quantity on Hand field at each site.Summary steps 1. Post all transactions for the year. 2. Reconcile inventory quantities. 3. Complete a physical inventory count, and then post any adjustments. 4. Print additional reports. 5. Make a backup. 6. Close the year. There is no Year End Closing report for Inventory. 7. Close the fiscal periods for the Inventory series (optional). 8. Make a final backup.Detailed steps 1. Post all transactions for the year. Make sure that all transactions for the current fiscal year have been entered and posted for Invoicing, Sales Order Processing, Purchase Order Processing, Inventory, and Manufacturing before you close the year. This is so the 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. 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 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.ACE MICROTECHNOLOGY, INC. Page 6
  • 7. 3. Complete a physical inventory count, and then post any adjustments. a. 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 point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Inventory, and then click Stock Calendar. b. The Stock Count Cycle Assignment window can be used if you want to assign one stock count frequency to many items. c. 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. d. 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. 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. 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 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.ACE MICROTECHNOLOGY, INC. Page 7
  • 8. 5. Make a backup. Make a backup of all company data. This is advised 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: a. 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. b. Updates the amount in the items 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. c. Zeros the Quantity Sold field in Item Quantities Maintenance window for each site. d. Removes purchase receipts and cost change history for items that have been completely sold. (Option selection) e. Removes any discontinued items from the Item records that have been completely sold. (Option selection) f. Removes any lot attributes from the records of lot numbered items if they have been completely sold. (Option selection) g. 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. (Option selection) h. Use the Inventory Year-End Closing window to close the year. The following options are available: o Remove discontinued items 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, you will be unable toACE MICROTECHNOLOGY, INC. Page 8
  • 9. 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 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. Remove: Sold Receipts and Cost Change History Prior To. You 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, LIFO Perpetual, or 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 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. i. Update an items standard cost Click to select the Items 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 items current cost or the amount you most recently paid for the item. When you have selected all the options that you want, click Process to start the year-end closing process. When the year is being closed, you will be unable to post, reconcile quantities, change valuation methods, or change decimal places for items. There is no Year End Closing report for Inventory. 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 point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods.ACE MICROTECHNOLOGY, INC. Page 9
  • 10. 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 companys financial position at the time that you closed the year.Inventory Year-End Q & AQ1: How is the Average Cost of an Item updated throughout the year and during the year-end closingprocess when using the Average Perpetual Method of Costing?A1: If you are using the Average Perpetual Costing Method, all Receipts for each Item will be averagedto determine the Average Cost. Even if Quantities are sold, the Average does not change until anotherPurchase Receipt for the Item is posted to the Inventory Purchase Receipts File. The year-end closingprocess does not change the Average Cost, but it will remove the Purchase Receipts that have beencompletely sold. The next time a Receipt is entered, the Average Cost will be revalued with the Receiptsthat remain in the Inventory Purchase Receipts File.Q2: Can the Inventory Year-End Closing window (Routines >> Inventory >> Year-EndClose) be used throughout the year to update the standard Cost of Items if using thePeriodic Valuation Method?A2: This is not recommended because the Beginning Quantity field is updated during the year-endclosing process. This would make that field incorrect on reports such as the Turnover Report.ACE MICROTECHNOLOGY, INC. Page 10
  • 11. Close Receivables ManagementConfirm that the Receivables Management month end process steps have been completed.It is not necessary to perform the Receivables Management Fiscal Year-end Close on December 31st.You do not have to wait until you close before posting Receivables batches to the New Year. However,the Calendar Year-end close is not Date Sensitive. This procedure should be done at Year-end(December 31st). The Calendar Year-end closing affects only finance charge amounts.Closing the CALENDAR Year (Sales Area >> Routines >> Sales >> Year-End Close) will clear the calendaryear-to-date finance charges and move them to the Last Year calendar field in Customer Finance ChargeSummary (Sales Area >> Cards >> Sales >> Summary >> Finance Charges).Closing the FISCAL Year (Sales Area >> Routines >> Sales >> Year-End Close) will transfer amounts otherthan the calendar year-to-date finance charge amounts to the Last Year column in Customer Summary(Sales Area >> Cards >> Sales >> Summary). It will only transfer those amounts that fall into the fiscalyear being closed. Amounts entered for the new fiscal year will remain in the Year-to-date column.Note: Although Receivables Management is date sensitive, the following items are updated based onthe closing of Receivables Management and is not date sensitive:  The SmartList objects  The Receivables Management summary reports  The Amounts Since Last Close view in the Customer Summary windowTherefore, we recommend that you follow these steps so that the SmartList objects, the ReceivablesManagement summary reports, and the Amounts Since Last Close view contain the correct information.Summary steps 1. Post all the sales and receivables transactions for the year. 2. Close the year.Detailed steps 1. Post all the sales and receivables transactions for the year and perform the month end close process. 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 post the new year transactions, these areas will contain incorrect information.ACE MICROTECHNOLOGY, INC. Page 11
  • 12. 2. Close the year a. Point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Sales, and then click Year-End Close. i. 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. b. 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 detailsThe calendar year-end process in Microsoft Dynamics GP clears the following fields in the CustomerSummary window:  Finance Charges CYTD  Total # FC YTD  Total Finance Charges YTD  Total Waived FC YTD  Unpaid Finance Charges YTDThe calendar year-end process updates the amounts in the following fields:  *Finance Charges LYR Calendar  *Total # FC LYRFiscal year detailsThe fiscal year-end process in Microsoft Dynamics GP clears the following fields in the CustomerSummary window:  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 YTDACE MICROTECHNOLOGY, INC. Page 12
  • 13. 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 LYRReceivables Management Year-End Closing Tips 1. Closing the calendar year will clear the calendar year-to-date finance charges and move them to the last year field on the customer records. 2. This information is not date-sensitive so the Calendar Year-End close should be done at the end of the calendar year. 3. If you have Finance charges to post into the New Year wait until you have performed the Calendar Year-End Close so your summary information at Sales Area >> Cards >> Sales >> Summary >> Credit Summary will not be misstated for finance charges. 4. The calendar year-end close in Receivables will take place at the end of the calendar year regardless of when your fiscal year-ends. If your calendar year coincides with the fiscal year, you will close both at the end of the calendar year 5. The YTD Finance Charges do not automatically print on the statements in December and January. If you want them to print on the statements you must modify them using the following procedures. The procedure for getting the YTD finance charges on the December and January statements takes two different steps, one for each month. December: Create a modified version of the statement and link the Customer MSTR Summary file to the report. a. In the Report Layout window, place the CYTD Finance Charges field (in the Customer MSTR Summary file) on the report. b. Save the report and print it. January: Create a modified version of the statement and link the Customer MSTR Summary file to the report. a. In the Report Layout window, place the LYTD field (in the Customer MSTR Summary file) on the report. b. Save the report and print it.ACE MICROTECHNOLOGY, INC. Page 13
  • 14. 6. If you wait until after January to run the Calendar Year-end Close, any finance charges assessed during January will not update the year-to-date finance charges until after the calendar year-end close 7. Closing the fiscal year will transfer all amounts other than the calendar year-to-date finance charge amounts to last year (using the Transaction Date) 8. (OPTIONAL) You can reconcile Fiscal and Calendar Year information by running a Reconcile on Calendar or Fiscal Year information. This will reconcile your summary information to your detailed transactions. Summary information will be updated accordingly (Sales Area >> Utilities >> Reconcile >> Mark Calendar or Fiscal Year).ACE MICROTECHNOLOGY, INC. Page 14
  • 15. Close Payables ManagementChanges in the Year-End Update that Affect PayablesOn the 1099-DIV form, boxes 2c, 2d, 3, 4, 5, 6, 8 and 9 have been moved so that the information isprinted in the appropriate box, which fixes an issue from previous releases.Confirm that the Payables Management month end process steps have been completed.Note: Although the Payables Management module is date-sensitive, the SmartList objects, the PayablesManagement summary reports, and the Amounts Since Last Close view of the Vendor Yearly Summarywindow are updated based on the closing of the Payables Management module. Therefore, werecommend that you follow these steps so that the SmartList objects, the Payables Managementsummary reports, and the Amounts Since Last Close view of the Vendor Yearly Summary window arecorrect.We recommend that you post all transactions for the calendar year before closing theyear. To enter future-period transactions before closing the year, create a batch with newtransactions, but do not post it until after the year has been closed.Summary steps 1. Post all transactions for the year. 2. Print the Aged Trial Balance with Options report. 3. Print the Vendor Period Analysis Report. 4. Install the Payroll year-end update (for 1099 changes, optional) 5. Make a backup that is named "Pre-1099 Edits." 6. Verify the 1099 information and edit it if it is required. 7. Print the 1099 statements. 8. Make a backup that is named "Pre Year-End." 9. Close the year. 10. Close the fiscal periods. 11. Close the tax year. 12. Make a backup that is named "Post Year-End."Detailed steps 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 Payables Management are not date-sensitive:ACE MICROTECHNOLOGY, INC. Page 15
  • 16.  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 post new year transactions. 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. 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: A. On the Reports menu, point to Purchasing, and then click Trial Balance. B. In the Reports list, click Aged Trial Balance with Options. 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 A. On the Reports menu, point to Purchasing, and then click Analysis. B. In the Reports list, click Period. 4. Install the Payroll year-end update (optional) 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.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 companys 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. 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. 6. Verify the 1099 information and edit it if it is required To print the 1099 edit list, follow these steps:ACE MICROTECHNOLOGY, INC. Page 16
  • 17. 1. Point to Routines, point to Purchasing, and then click Print 1099. 2. On the File menu, click Print. To edit the 1099 information for a vendor, follow these steps. To open the "1099 Details" window, use one of the following methods. Method 1 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: o Dividend o Interest o Miscellaneous 4. In the Display area, click Month or Year, and then type 2012 in the Year field. 5. In the Amount column, type the correct 1099 amount. 6. Click Save. Method 2 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 2012. 4. In the Month/Period field, select the appropriate month or period. 5. Click the "1099 Details" button that appears next to the 1099 Amount field. 6. In the Amount column, type the correct 1099 amount. 7. Print the 1099 statements Note You can do this at any time. To print the 1099 statements, follow these steps: 1. Point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing, and then click Print 1099. 2. In the 1099 Year field, type 2011. 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 locatedPayers name, street address, city, state, and ZIP Print 1099 windowCode/Postal CodePayers Federal Identification number Print 1099 windowRecipients name, address, and Zip Code/Postal Code Primary Address of the Vendor Maintenance windowACE MICROTECHNOLOGY, INC. Page 17
  • 18. Recipients identification number Tax ID field of the Vendor Maintenance Options windowAmounts for boxes 1-9 on the Dividend Form or 1-16 on 1099 Amount field in the Vendor Yearlythe 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: Greenshades Accounting Software, Inc. 7800 Belfort Parkway Suite 220 Jacksonville, FL 32207 General: 1-800-209-9793 (Toll-Free) Sales: 1-800-209-9793x2 (Toll-Free) sales@greenshades.com http://www.greenshades.com 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 companys 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. 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. 9. Close the year To close the year, follow these steps: A. Point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing, and then click Year-End Close. B. 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. C. 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: A. On the Cards menu, point to Purchasing, and then click Summary. B. In the Vendor ID field, type a vendor ID to view, and then click Yearly.ACE MICROTECHNOLOGY, INC. Page 18
  • 19. Calendar year detailsWhen you have finished printing the 1099 forms, you are ready to close the calendar year. Werecommend that you print an Aged Trial Balance with Options Report to show the status of each vendoraccount. If you are closing the fiscal year along with the calendar year, we recommend that you print theVendor Period Analysis Report and the Vendor Year-to-Date Summary reports for your permanentrecords because these amounts will be transferred to last year during the year-end closing process. Thecalendar year-end process in Microsoft Dynamics GP will clear the 1099 Amount Year to Date field andthen transfer the amount to the 1099 Amount Last Year field for the Amounts Since Last Close view ofthe Vendor Yearly Summary window.Fiscal year detailsThe 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  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 YTDThe amounts in these fields will also be updated in the Amounts Since Last Close view of the VendorYearly 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 10. Close the fiscal periodsACE MICROTECHNOLOGY, INC. Page 19
  • 20. 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. 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. 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: A. Point to Company, and then click Tax Year-End Close. B. Click to select the Close Year check box and the Print Report check box. C. Click Process. When you are prompted to continue with the year-end close. Click Yes. Note We recommend that you keep a paper copy of the year-end report together with your permanent year-end audit records. 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 companys 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. 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.ACE MICROTECHNOLOGY, INC. Page 20
  • 21. Close Fixed AssetsChanges in the Year-End UpdateFixed Assets New Special Depreciation AllowanceBest practices recommend closing Payables Management before closing Fixed Assets since Fixed Assetsis not a date-sensitive module. This way you can ensure all transactions coming from Payables havebeen capitalized in the Fixed Assets system. Also, we suggest closing Fixed Assets prior to performing theGeneral Ledger year-end close.The year-end routine can be run at a separate time for each fixed asset book or it can be run for allbooks at the same time, however, it must be completed before processing any fixed asset transactionsin the new year.Before the year-end process is performed, be sure that depreciation has been calculated through thelast day of your fiscal year. You will also want to interface to General Ledger and print any reports thatprint year-to-date depreciation.Year-end will zero out year-to-date depreciation and year-to-date maintenance. It will also copy quantityto beginning quantity, cost basis to beginning cost, salvage to beginning salvage, and life-to-datedepreciation to beginning reserve.It is recommended that you rebuild your fixed assets fiscal year calendar file after you change the FiscalPeriod Setup or add additional years to the setup. To rebuild the calendar, go to (Financial Area >>Utilities >> Fixed Assets >> Build Calendar)Summary Steps: 1. Perform all the year-end closing procedures for Payables Management. 2. Enter all the fixed asset transactions for the current fiscal year. 3. Depreciate all assets through the last day of the current fiscal year. 4. Perform the GL Posting (GL Interface) process. 5. Run any year-end reports that you want to keep as part of the year-end financial records. 6. Verify that the Fixed Assets calendar is built correctly. 7. Verify that the quarters are set up correctly for all the fiscal years. 8. Create a backup. 9. Perform the fixed assets year-end closing routine. A report is not generated during the fixed assets year-end closing routine. 10. Make a backup that is named "Post Year-End."Detailed StepsACE MICROTECHNOLOGY, INC. Page 21
  • 22. 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. 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. 3. Depreciate all assets through the last day of the current fiscal year 1. 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. 5. Perform the GL Posting (GL Interface) process (optional) 1. Point to Routines, point to Fixed Assets, and then click GL Posting. 2. In the Beginning Period box, type 2012-012. Note The 2012-012 placeholder represents period 12 of the fiscal year 2012. If you are not running on a calendar fiscal year, or if you have more than 12 periods, the period that you type is different. 3. In the Ending Period box, type 2012-012. 4. In the Transaction Date box, type the last date of the current fiscal year, or type the date when you need the posting to affect the general ledger. 5. Click Continue. 6. When you receive a message that the batch number is being created, click Continue. 7. In the Report Destination window, click to select the Printer check box, and then click OK. Note You may want to keep this report as part of the year-end financial records. 6. Run any year-end reports that you want to keep as part of the year-end financial records The year-to-date depreciation amounts for previous fiscal years are not kept in Fixed Asset Management. Therefore, you must print any reports that contain this information before you close the year. There are several reports available for fixed assets. We recommend that you print the following reports:ACE MICROTECHNOLOGY, INC. Page 22
  • 23.  Annual Activity: To print the Annual Activity report, point to Fixed Assets on the Reports menu, and then click Activity.  Additions: To print the Additions report, point to Fixed Assets on the Reports menu, and then click Transaction.  Retirements: To print the Retirements report, point to Fixed Assets on the Reports menu, click Transaction, and then click Retirements in the Reports list.  Transfers: To print the Transfers report, point to Fixed Assets on the Reports menu, click Transaction, and then click Transfers in the Reports list.  Depreciation Ledger: To print the Depreciation Ledger report, point to Fixed Assets on the Reports menu, click Depreciation, and then click Depreciation Ledger in the Reports list.  Property Ledger: To print the Property Ledger report, point to Fixed Assets on the Reports menu, click Inventory, and then click Property Ledger in the Reports list.  Fixed Assets to General Ledger Reconciliation: To print the "Fixed Assets to General Ledger Reconciliation" report, point to Fixed Assets on the Reports menu, click Activity, and then click Fixed Assets to General Ledger Reconciliation in the Reports list. If you have more than one fixed asset book, we recommend that you also print the following reports:  Book to Book Reconciliation: To print the "Book to Book Reconciliation" report, point to Fixed Assets on the Reports menu, and then click Comparison.  Book to Book YTD Depreciation Comparison: To print the "Book to Book YTD Comparison" report, point to Fixed Assets on the Reports menu, click Comparison, and then click Book to Book YTD Depreciation Comparison in the Reports list. 7. Verify that the Fixed Assets calendar is built correctly (This step is optional.) 1. Point to Utilities, point to Fixed Assets, and then click Build Calendar. 2. Click Inquire, and then click Verify. When you are prompted to verify the periods, click OK. 3. In the Report Destination window, click Screen, and then click OK. 8. Verify that the quarters are set up correctly for all the fiscal years 1. Point to Setup, point to Fixed Assets, and then click Quarter. 2. Make sure that the following boxes are not empty: o Start Date o Mid Date o End Date Note These boxes must exist for each quarter. If any box is empty, type the appropriate date in that box. 9. Create a backup This backup should be stored off-site together with the rest of the year-end documentation. This backup gives you a permanent record of the companys financial position at the end of the year. Additionally, this backup can be restored later if it is required. Making a backup guarantees that you can quickly recover if a power fluctuation or other problem occurs during the year-end closing procedures.ACE MICROTECHNOLOGY, INC. Page 23
  • 24. To create a backup in Microsoft Dynamics GP, follow these steps: 1. Point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup. 2. In the Company Name list, click the company name. 3. Change the path of the backup if you must, and then click OK. 10. Perform the fixed assets year-end closing routine 1. Point to Routines, point to Fixed Assets, and then click Year End. 2. Verify that the fiscal year that is displayed for each book is the current fiscal year. (The current fiscal year is the year that you are closing. 3. Click a book that you want to close, and then click Insert. Repeat this step until all the books that you want to close have been inserted. Note Microsoft Dynamics performs the following procedures during the year-end closing routine:  In the Asset General Information window, the Quantity field is copied to the Begin Quantity field of the Expand Quantity window.  In the Expand Last Maintenance window, the YTD Maintenance amount is cleared.  In the Asset Book window, the YTD Depreciation Amount is cleared.  The following procedures are performed: o The Cost Basis field is copied to the Begin Year Cost field. o The LTD Depreciation field is copied to the Begin Reserve field. o The Salvage Value field is copied to the Begin Salvage field.  In the Book Setup window, the Current Fiscal Year field is increased by one.Note A report is not generated during the fixed assets year-end closing routineACE MICROTECHNOLOGY, INC. Page 24
  • 25. MulticurrencyClosing a YearIf you use Multicurrency Management, you will close the year using the Year-End Closing window just asyou would for General Ledger. However, different reports will be printed for MulticurrencyManagement.The Multicurrency Year-End Closing Report will be printed in place of the General Ledger Year-EndClosing Report if you use Multicurrency Management. The Multicurrency Year-End Closing Reportdisplays the profit and loss accounts that were closed to the retained earnings account when the year-end closing process was complete, along with functional and originating amounts that were closed.If you have not assigned all currency IDs to your retained earnings account using the Select AccountCurrencies window, the Multicurrency Retained Earnings Exception Report also will be printed. Thisreport displays all retained earnings accounts for which multicurrency transactions were closed, eventhough the currency for the multicurrency amounts was not assigned to the retained earnings account.If you did not intend to close these accounts to the retained earnings account, you can use this report todetermine amounts you will need for correcting these transactions.For more information on closing the year, refer to the General Ledger documentation.If you want to review the Multicurrency Year-End Closing Report, Multicurrency Retained EarningsException Report or General Ledger Year-End Closing Report, refer to the online sample reports.Multicurrency Management – Year-EndConsolidating & closing a periodIf you use Multicurrency Management, you will consolidate periods using the PeriodConsolidation window and close periods using the Fiscal Periods Setup window, just as youwould do using General Ledger. However, different reports will be printed if you also useMulticurrency Management.The Multicurrency Period Consolidation Report will be printed in place of the General Ledger PeriodConsolidation Report if you are using Multicurrency Management. The Multicurrency PeriodConsolidation Report includes all multicurrency transaction detail that is consolidated into summaryinformation during the period consolidation process.ACE MICROTECHNOLOGY, INC. Page 25
  • 26. Closing a Year in General LedgerClosing a General Ledger year transfers financial account and transaction information from open year tohistory (if you keeping history records), and prepares the General Ledger for a new fiscal year. You canenter General Ledger transactions for the next fiscal year without closing the current year, leaving fiscalyears open until all adjusting entries have been entered and posted to the correct periods. Dynamics GPallows unlimited open years. If you use Management Reporter or FRx for reporting, you will need toclose the year to have correct balance-forward reports or add some additional columns to computebeginning balances.In addition to transferring open-year amounts to transaction and account history, the year-end closingprocess will:  Reconcile and summarize the General Ledger balances that have accumulated throughout the year.  Transfer open-year profit and loss amounts to the Retained Earnings account.  Zero all profit and loss account balances after closing to the Retained Earnings account.  Summarize balance sheet accounts, bringing the balances forward as the accounts’ beginning balances in the new fiscal year.  Remove inactive accounts with zero balances.  Print the Year-End Closing Report.Up to this point, you should have entered all final adjusting entries for the fiscal year and printed finalfinancial statements. (You can set up a group of year-end reports in the Financial Groups window thatwill collectively print the financial statements and trial balance each time you close the fiscal year.)When the year-end closing process is complete, print the financial statements again and compare thebalances.**Note - During the Year-End Close, all records that will be moved during the routine are put in atemp table before moving to the GL30000. Therefore, there is a need for free disk space equaling thesize of the GL20000 table.Summary steps 1. Complete the posting procedures and the closing procedures for other modules. Note This step is only required if General Ledger is integrated with other modules. 2. Post the final adjusting entries in General Ledger. 3. Print an account list to verify the posting type of each account. 4. Close the last period of the fiscal year. Note This step is optional. 5. Optional: Perform file maintenance on the Financial series group of modules.ACE MICROTECHNOLOGY, INC. Page 26
  • 27. 6. Verify the settings in the General Ledger Setup window. (Maintain History for Accounts and Transactions is marked if you want to keep history records) 7. Make a backup. 8. Print a final Detailed Trial Balance report. 9. Print the year-end financial statements. 10. Set up a new fiscal year (if it has not been setup already). 11. Close the fiscal year. 12. Close all the fiscal periods for all the series. Note This step is optional. 13. Adjust the budget figures for the new year, and then print the financial statements. 14. Make a backup.Detailed steps 1. Complete the posting procedures and the closing procedures for other modules. Only follow this step if General Ledger is integrated with other modules. If General Ledger is not integrated with other modules, skip this step. 1. Post final transactions in all the modules except in General Ledger. 2. Complete the month-end procedure and the quarter-end procedure for all the modules except for General Ledger. 3. Complete the year-end closing procedures for each module in the following order: 1. Inventory Management 2. Receivables Management 3. Payables Management !!! Payroll year-end procedures are independent of those in other modules, and are performed at the calendar year-end 2. Post the final adjusting entries in General Ledger. The adjusting entries include all the entries that correct errors that were made when transactions were recorded. The adjusting entries also include journal entries that are used to assign revenues or expenses to the period in which the revenues were earned or in which the expenses were incurred. If you have to track initial adjusting entries or post-audit entries separate from other fiscal periods, auditing periods can be set up in General Ledger. This feature enables separate tracking of the adjusting entries that are made after the year is closed. The Second Closing Period feature in General Ledger allows you to have a second closing period with the same From/To date as the last day of the first closing period. This can allow you to enter initial adjusting entries in the first closing period, and post-audit entries in the second closing period 14. (This allows for separate tracking of the adjusting entries made after the year is closed.)ACE MICROTECHNOLOGY, INC. Page 27
  • 28. NOTE: If using Fixed Assets you cannot have a second closing period. To successfully post into period 14 these requirements must be met: a. The additional fiscal periods must be set up before closing the year. b. The year must then be closed. c. In the Fiscal Period Setup Window, you must mark all the financial periods as closed, except period 14. With these requirements being met, a transaction could be posted to 12/31/06 and it will be considered a part of period 14. If you must make any adjusting entries to allocate revenue, expenses, or depreciation to the year that you are closing, use the Transaction Entry window or the Quick Journal Entry window to make adjusting entries in General Ledger. Note If you are using closing periods and you reconcile, the transactions all move to the first period with the start date. 3. Print an account list to verify the posting type of each account. The posting type determines whether an account is closed to the retained earnings account or whether an account brings a balance forward to the next fiscal year. If the account balance will be brought forward at the end of the year, the posting type must be set to Balance Sheet. If the account balance will be closed to a retained earnings account at the end of the year, the posting type must be set to Profit and Loss. Use the Account Maintenance window if you must change the posting type for an account. Follow these steps to print an account list:  On the Reports menu, point to Financial, and then click Account.  In the Reports list, select All Accounts, and then click New.  In the Option box, type all accounts.  Click to select the Inactive Accounts check box. Note The year-end close process is designed to delete inactive General Ledger accounts that have no current year activity.  Click Destination to specify a report destination, and then click OK.  Click Print. 4. Close the last period of the fiscal year. (optional) You can use the Fiscal Periods Setup window to close all fiscal periods that are still open for the year. This prevents transactions from being posted to the wrong period or to the wrong year. NotesACE MICROTECHNOLOGY, INC. Page 28
  • 29. o Make sure that you post all the transactions for the period and for the year for all modules before you close the fiscal periods. Later, if you have to post transactions to a fiscal period that you already closed, you must return to the Fiscal Periods Setup window to reopen the period. o If you use Microsoft FRx, keep one period in the most recent historical year open to prevent the following error message: “FRX Print Engine Failed to Load the Company Calendar”. 5. Optional: Perform file maintenance on the Financial series group of modules. Run the check links procedure on the Financial series group of modules. 6. Verify the settings in the General Ledger Setup window. If you want to keep historical records, you must click to select the Accounts check box and the Transactions check box in the Maintain History area of the General Ledger Setup window. The account history lets you print financial statements and calculated budgets from historical information. The transaction history lets you print detailed historical trial balances. The transaction history also lets you view the transaction details. If these check boxes are selected, both the account history and the transaction history are updated during the year-end closing routine. 7. Print a final Detailed Trial Balance report. Use the Trial Balance Report window to print a year-end Detailed Trial Balance report. Note We recommend that you post all transactions for the period and for the year for all modules before you print the Detailed Trial Balance report. If you post additional transactions later, we recommend that you print a new Detailed Trial Balance report. 8. Print the year-end financial statements. Print any year-end financial statements that are required. The most common financial statements include the following statements: o Balance Sheet o Profit and Loss Statement o Statement of Cash Flows o Statement of Retained Earning 9. Set up a new fiscal year. Before you can perform the year-end closing routine, you must set up a new fiscal year by using the Fiscal Periods Setup window. 10. Close the fiscal year. To close the fiscal year, follow these steps:ACE MICROTECHNOLOGY, INC. Page 29
  • 30. f. Use the appropriate step:  In Microsoft Dynamics GP 10.0 or Microsoft Dynamics GP 2010, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Financial, and then click Year-End Closing. g. Specify an account in the Retained Earnings Account box. The account that you specify in the Retained Earnings Account box is the account to which the years profit and loss accounts are closed. The default account is the account that you specified in the General Ledger Setup window. All current-year earnings or current-year losses are transferred to the account that you specify in the Retained Earnings Account box. If you want to distribute the retained earnings for the year to more than one account, you can specify an allocation account to distribute the retained earnings amount to the appropriate accounts. For example, you could set up an allocation account to divide the earnings between several departments in the business. Or, you could transfer the years profit or loss to accounts that contain a specific account segment. This process is known as closing to a divisional retained earnings account. h. Specify the number that you want to use as the first journal entry number for the next fiscal year in the Starting Journal Entry box. You can accept the default number. The default number is one more than the highest journal entry number that is posted for the current year. Or, you can specify a new number. The journal entry number that you specify is used as the journal entry number for the Year-End Closing report. i. To start the routine, click Close Year. Important Click Close Year one time. If you click more than one time, you will close more than one year during the process. Also, if the progress window appears to stop at 50 percent, do not restart the routine. As long as the hard disk is processing, let the process continue. If you are maintaining the account history, the year-end closing routine transfers all current-year information for each account in the chart of accounts to the account history. If you are maintaining the transaction history, the year-end closing routine also transfers all current-year information for each account in the chart of accounts to the transaction history. The process then prepares the accounting system for a new fiscal year. In addition to transferring current- year figures to the transaction history and to the account history, the year-end closing routine does the following: o The year-end closing routine reconciles and summarizes the general ledger balances that accumulated throughout the year. o The year-end closing routine removes accounts that are marked as inactive if the accounts match the criteria for deleting a posting account. Inactive accounts that have been set up as budget accounts can also be deleted if they have no activity for the year.ACE MICROTECHNOLOGY, INC. Page 30
  • 31. These accounts can be deleted even if budget amounts from past years are associated with these accounts. o The year-end closing routine moves all profit and loss account balances to the retained earnings account. o The year-end closing routine summarizes balance sheet accounts and brings the balances forward as the beginning balances of the account in the new fiscal year. o The year-end closing routine prints the Year-End Closing report. When the year-end closing routine is complete, the Year-End Closing report is printed. This report lists the accounts that were closed and the transactions that were created to close those accounts. The Year-End Closing report is part of the audit trail. Save this report for the companys permanent records. The Year-End Closing report cannot be reprinted. When closing is complete, the Year-End Closing Report will be printed. This report lists the accounts that have been closed and the transactions created to close them. The Year-End Closing Report is part of the audit trail and should be saved with your companys permanent records. Note If you use Microsoft SQL Server, and if database maintenance is not automated, we recommend that you perform database maintenance after you close the year. For more information about recommended database maintenance procedures, click the following article number to view the article in the Microsoft Knowledge Base: 866439 (https://support.microsoft.com/kb/866439/ ) Recommended maintenance with SQL Server for Microsoft Dynamics GP databases 15. Close all the fiscal periods for all the series. (optional) After you complete the closing procedures for all the modules, use the Fiscal Periods Setup window to mark all the periods for all the series as closed. We recommend that you do this to prevent transactions from being posted from any module to any period that you closed. After a period is marked as closed, transactions cannot be posted to the period unless you reopen the period. Later, if you must post a transaction to a closed period, return to the Fiscal Periods Setup window to reopen the period. 16. OPTIONAL: Adjust the budget figures for the new year, and then print the financial statements. Adjust the budget figures by using one of the following windows: o Excel-Based Budgeting o Budget Maintenance o Single-Account Budget Maintenance Print the "Profit and Loss" statement to verify that profit and loss accounts were closed to the retained earnings account. Print the balance sheet to verify that the balance sheet accounts indicate that the balances were brought forward.ACE MICROTECHNOLOGY, INC. Page 31
  • 32. 17. Create 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 companys 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. Use the appropriate method: o In Microsoft Dynamics GP 10.0 or Microsoft Dynamics GP 2010, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup. o In Microsoft Dynamics GP 9.0, click Backup on the File menu. 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 PostYearEndClosingBackup2011.General Ledger Year-End Closing Tips  The year-end closing does not have to be done right at year-end (although it is recommended). General Ledger is the ONLY module that does not have to have the year-end closing routine done right at year-end.  Typically, adjusting entries will have been entered before closing the fiscal year in General Ledger. Adjusting entries that need to be made after the close of the year can be made and posted to the most recent closed year, provided that ‘Allow Posting to History’ and ‘Maintain History’ are marked in General Ledger Setup. If an entry is posted to the closed year, an automatic second entry is created to update the beginning balances.  If someone has an account that is supposed to be setup as a Profit and Loss account but was mistakenly setup as a Balance Sheet account, the Profit and Loss account will have a beginning balance brought forward. You would also have a problem with a Balance Sheet account mistakenly setup as a Profit and Loss account, the Balance Sheet account will not have a beginning balance after the year-end close is run. To correct these situations use the following steps: Profit and Loss Account Set Up as a Balance Sheet Account If a Profit and Loss account was setup 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. Back up your dataACE MICROTECHNOLOGY, INC. Page 32
  • 33. 2. Be sure that the account(s) is still set to the INCORRECT Posting Type. If Multicurrency IS a registered module, go to Multicurrency Setup (Setup - Financial - Multicurrency) and unmark Maintain History for General Ledger Accounts. If Multicurrency IS NOT a registered module, rename the MC40000.* files located in the companys Finance directory. 3. Go to Setup - Financial - General Ledger, Tools – Setup – Financial – General Ledger and unmark Maintain History for Accounts and Transactions. 4. In this same window, be sure Allow Posting to History is marked. Choose OK to save the changes. 5. Go to Transactions - Financial - General and enter the appropriate journal entry. Be sure the transaction date is in the closed year so that the entry goes into history 6. Post this entry. The posted transaction(s) will only affect the current year because we have turned off the maintaining history options. It will post a beginning balance transaction into the new year and therefore the accounts will now have the correct balances. 7. Go to Setup - Financial - General Ledger Tools – Setup – Financial – General Ledger and remark Maintain History for Accounts and Transactions. 8. In this same window, be sure that Allow Posting to History is set correctly. Choose OK to save the changes. 9. If Multicurrency is a registered module, go to Multicurrency Setup (Tools – Setup >> Financial – Multicurrency) and remark to Maintain History for General Ledger Account. If Multicurrency is not registered, rename the MC40000.* back to the original name. 10. Go to Cards - Financial - Account and bring up the account(s) with the incorrect Posting Type and change the posting type to the correct one.Balance Sheet Account Set Up as a Profit and Loss AccountIf a Balance Sheet account was setup as a Profit and Loss account, the Balance Sheet account will have abeginning balance of ZERO after the Year-End close. To correct this situation use the following steps: 1. Back up your data 2. Be sure that the account(s) is set to the CORRECT Posting Type using the Account Maintenance window. 3. Go into the Tools >> Setup >> Financial >> Multicurrency and unmark Maintain History for General Ledger Account. Note: If not registered for Multicurrency, rename the MC40000.* files located in the companys Finance directory.ACE MICROTECHNOLOGY, INC. Page 33
  • 34. 4. Go to Tools >> Setup >> Financial >> General Ledger and unmark Maintain History for Accounts and Transactions. 5. In this same window, be sure Allow Posting to History is marked. Choose OK to save the changes. 6. Go to Transactions >> Financial - General and enter the appropriate journal entry. Be sure the transaction date is in the closed year so that the entry will update beginning balances. 7. Post the transaction(s). The posting procedure will only affect the current year, because you have turned off the maintaining history options. It will post a beginning balance transaction in the new year and, therefore, the accounts will now have the correct balances. 8. Go to Financial Area >> Setup >> General Ledger and remark Maintain History for Accounts and Transactions. 9. In this same window, be sure that Allow Posting to History is set correctly. Choose OK to save your changes. 10. If Multicurrency is a registered module, go to Tools >> Setup >> Financial >> Multicurrency and remark to Maintain History for General Ledger Account. If Multicurrency is not registered, rename the MC40000.* back to the original name.  If you do not close General Ledger at year-end, the user will not get accurate financial statements for the new year. Beginning balances for the new year are not created until the year- end close process is completed. Therefore, your financial statements for the new year will only reflect current year activity when the year-end closing process is completed. This happens whether the financial statements are printed from Advanced Financial or from FRx.  If a transaction in General Ledger originated in Bank Reconciliation, you will not be able to drill back to Bank Reconciliation from General Ledger after the General Ledger year-end close has been performed.ACE MICROTECHNOLOGY, INC. Page 34
  • 35. General Ledger Year-End Q & ADivisional retained earnings accountsQ: I have these retained earnings accounts set up in my chart of accounts:100-3300-00 Retained Earnings Division 100200-3300-00 Retained Earnings-Division 200300-3300-00 Retained Earnings-Division 300The segment I am closing on is the division (first segment). Where will the accounts with a 400 divisionclose into, i.e. 400-4100-00 Sales >>division 400?A: Before performing the year-end close, the system will verify that all retained earnings accounts thatare needed exist. If a 400 divisional retained earnings account isnt found, the year-end closing will notproceed. An error will occur, and then you will have to set up the needed account.Unit accounts at year-endQ: What happens to unit accounts during a year-end closing?A: Unit accounts are treated as balance sheet accounts and will have a balance brought forward whenthe year is closed.Note: There is a script from Microsoft to clear the beginning balancesBeginning balances showing for sales and expense accounts or Year-End with wrongaccount typeQ: I performed the year-end closing procedure, and beginning balances were brought forward for someof my sales and expense accounts. Why did this happen, and what can I do to correct this?A: In the Account Maintenance window, verify the selection made for Posting Type. Sales and expenseaccounts need to have Profit and Loss selected on this line. To make corrections now, restore a backup,change the selection in this window, and close the year again or see the General Ledger Tips section forinstructions to correct this after the close has been run.Exclusive useQ: I am getting ready to close my year in General Ledger. Must everyone exit Dynamics GP before thisroutine is performed?A: We recommend that users at other client computers do NOT continue to work in Dynamics GP duringthe year-end closing procedure. The reason is that transactions may need to be reentered if problemsoccur during the closing procedure.Allocating net profitQ: I would like to allocate my net profit into my retained earnings or capital accounts on a monthlybasis. Also, net profit is supposed to be allocated to three different retained earning or capital accounts.Is this possible?A: No. However, you could enter a non-financial account in the Account Maintenance window. Enter anumber outside of your current account numbering scheme. This account will act as a holding orsuspense account for the net income/loss. Every month you can post an adjusting entry to the threecapital accounts that you wish to adjust; for the offset account, use the holding/suspense account.When the year-end close is completed, use the suspense account for the retained earnings account. Thiswill offset all the manual adjustments made to the suspense account all year. Be sure that the holdingACE MICROTECHNOLOGY, INC. Page 35
  • 36. account does not show up on reports. Also, when formatting the Balance sheet, put the NP line as thelast line on the Advanced Financial Analysis statement and put a page break before it. The Balance Sheetneeds an NP line, but that would show the net income/loss two times, so it should be formatted off thefinancial statement, or use a report type of other.Invalid statusQ: Why do I have an invalid status on some of my financial reports?A: If a report is marked to use the accelerator file, any changes made to accounts through either theAccount Maintenance, Unit Account Maintenance, Mass Modify Chart of Accounts, or Year-End Closingwindows will cause the status of financial report printing options to change to Invalid. Before printingfinancial statements, you will want to update the accelerator file using Reports-Financial-UpdateFinancial Accelerator Information so that your financial statement reflects the most current informationabout your chart of accounts.Non-financial accountsQ: How are non-financial accounts closed at year-end?A: If the non-financial account is set up with a Balance Sheet posting type, the accounts balance will bebrought forward during the year-end close. If the non-financial account is set up with a Profit and Lossposting type, the accounts balance will be closed to retained earnings during the year-end close.Errors/warnings regarding the Year-End CloseQ: When I attempt to post a batch in General Ledger, the message "Batches cannot be posted while theyear-end close is in progress" appears. The year-end closing is not being run in General Ledger. Whatshould I do?A: Have all users exit any transaction entry window, then, in a SQL Query Tool, run the following queries:DELETE SY00800 (against the DYNAMICS database)DELETE DEX_SESSION (against the tempdb database)DELETE DEX_LOCK (against the tempdb database)Q: The following alert message appears when I attempt to close the year in General Ledger: "Sorry,another user is closing the year." No one else is closing the year. What should I do?A: In a SQL Query Tool, run the following query against the company database:DELETE GL50100Q: I started the Year-end Close process in General Ledger and a warning message appears. It says "Asingle -use batch or quick journal transaction has not been posted yet. Do you wish to continue closing?"Is there something wrong?A: This message appears if you have unposted batches in General Ledger. If the batches need to beposted before closing the year-end, choose Cancel. If the batches do not need to be posted beforeclosing the year, choose Continue.Q: I am performing the Year-end Close in General Ledger and it appears to be hanging at 50%. It lookslike my workstation has locked up. What should I do?A: If your Year-to-Date Transaction Open file is large, it may take a while for the Year-end Closeprocedure to complete. If your hard drive is still processing, it is not locked up and you should leave itACE MICROTECHNOLOGY, INC. Page 36
  • 37. running. If your hard drive is not processing you should restore a backup, do File Maintenance on all filesin the Financial series and start the Year-end Close again.Analytical accountingAnalytical Accounting is integrated with the General Ledger closing process. When GL is closed, AA datawill move from open tables to history tables.To create BBF entries in AA, go to the following windows and set up the options appropriately  Analytical Accounting Options window (Administration area page under Setup | Company | Analytical Accounting) – ‘Include dimensions in the year-end close’  Transaction Dimension Maintenance window (Financial area page under Cards | Analytical Accounting) – ‘Consolidate balances during year-end close’ACE MICROTECHNOLOGY, INC. Page 37