The end of the year is upon us, and that means that alongside all the hustle and bustle of the holidays, another busy season is due to follow—Year-end closing. If you are using Microsoft Dynamics GP, there are a lot of resources, steps, and procedures to close the year out strong. Today, we would like to share tips, tricks, and helpful links to help you have a stress-free close.
Updates and Notes in Each Supported Version of GP
In November, Microsoft released the U.S. year end update to CustomerSource, along with a blog discussing the fixes and changes. Often, year end updates bring necessary payroll updates, hotfixes, and compliance updates to companies on mainstream support (currently 2015, 2016, 2018). Among the changes:
Payroll (GP 2015, 2016, 2018)
As always, year-end updates make large-yet necessary changes to U.S. Payroll, including Payroll and Payables Changes and Updates for ACA Reporting.
- Form 1099-DIV: Box 5 Section 199A dividends has been inserted in to a previously blank space on the Payables 1099-DIV form. Existing box numbers were renumbered from Box 5-14 to 6-15. Box 5 was previously Investment expenses. Investment expenses is now Box 6 (all subsequent boxes have been incremented as well).
- Form 1096: Two new form option checkboxes added.
- Form 1099-R: additional Distribution Codes C and M for Box 7 allowed to be entered on Edit 1099-R window. These codes and amounts associated with them will then be printed on the Print 1099-R form.
- ACA Form 1094-C: Checkboxes in box 22 Certifications of Eligibility have shifted on form 1094-C.
- ACA Form 1095-C: Formatting updates.
- Forms Not Changing in 2018 Year-End Update: Among the forms that will not change in 2018 are W-3, W-2, W-4, 1099-INT and 1099-MISC
Dynamics GP 2018
Dynamics GP 2018 (version 18.00.0672), including GP 2018 R2, sees fixes surrounding the Web Client Letter Writing Assistant (in R2), as well as the following modules:
- System: Potential error with the ASIEXP86 table (SmartList Favorites Columns Master) when you upgrade to Dynamics GP 2018 R2.
- Payroll: Aside from much larger Payroll changes in GP year-end, Microsoft notes that there are a few things to watch for in the event you key a transaction outside the pay code start/end date or if the start date falls between pay period dates. Further, the Mandatory arrears information is not populated in the APR_APR30300 table.
- Project Time and Expenses: A few changes include that PTE Timesheets may be updated with incorrect billing status using various tab orders in Web Client, an incorrect billing status that may be used when using looking glass to select a cost category to add a new item to a multi-line timesheet. Microsoft also notes that the entry window may slow when making edits to previously saved lines.
- VAT: A few changes made when calculating VAT regarding purchasing tax amounts, sales returns and credit memos, and purchasing returns and credit memos. Purchasing tax amounts from GL entries are subtracting from boxes 2 and 7, instead of adding to boxes 4 and 7 on the VAT Summary. Sales returns and credit memos are not deducting total taxable amount from box 6 on VAT return, and voids from box 1 and box 6. Purchasing returns & credit memo’s, voids are not deducting total taxable amount from box 7 on VAT return, and invoices not updating box 4.
Dynamics GP 2016
Fewer notes made in GP 2016 (version 16.00.0741). Primarily, you may experience internment workflow email failure, as well as the came VAT notes made in GP 2018. For companies printing
Dynamics GP 2015
GP 2015 adds changes to Payables forms 1099-DIV, 1096 and Payroll 1099-R (Pension).
The 14-Step Year-End Close Checklist for General Ledger in GP
The year-end close needs to be completed in a specific order to avoid errors or miscalculations during the closing procedure.
- Complete the posting procedures and the closing procedures for other modules (only required if GL is integrated with other modules): Post final transactions in all modules except for GL and complete month-end for all modules before completing year-end in each module. Per KB 888003, Microsoft recommends you close in the following order Inventory > Receivables Management > Payables Management > Fixed Asset Management > Analytical Accounting.
- Post the final adjusting entries in General Ledger: Make entries to correct errors.
- Print an account list to verify the posting type of each account. Determine which accounts are closed to retained earnings (moved to balance sheet) and which go to profit and loss.
- Close the last period of the fiscal year (optional): prevents transactions from being posted to the wrong period or to the wrong year.
- Perform file maintenance on the Financial series group of modules (optional): Run the check links procedure on the Financial series group of modules.
- Verify the settings in the General Ledger Setup window: Determine whether you want to keep historical records and verify that the box is checked or unchecked in the Maintain History area.
- Make a backup: Backups are critical to reduce the pain if anything goes wrong.
- Print a final Detailed Trial Balance report: Use the Trial Balance Report window to print Detailed Trial Balance Report.
- Print the year-end financial statements: Print any year-end financial statements that are required including but not limited to Balance Sheet, Profit and Loss Statement, Statement of Cash Flows, and Statement of Retained Earnings.
- Set up a new fiscal year: You must set up a new year before closing this year.
- Close the fiscal year: point to Toolson the Microsoft Dynamics GP menu, point to Routines, point to Financial, and then click Year-End Closing. See notes on using divisional retained earnings accounts here.
- Close all the fiscal periods for all the series (optional): Done to prevent transactions from being posted from any module to a closed period.
- Adjust the budget figures for the new year, and then print the financial statements: Adjust budget figures in Excel-Based Budgeting, Budget Maintenance, or Single-Account Budget Maintenance.
- Make a backup: This backup gives you a permanent record of the company’s financial position at the start of the new year.
Knowledge Base article 888003 explores a wide range of questions and answers about closing the year, providing helpful tips and tricks to make the year easier. Additionally, get more information about 2018 year-end close here.
Additional Information: Microsoft Dynamics GP Year-End Blog Series
There is a lot more information about closing the year in Microsoft Dynamics GP, much more than we can cover in a blog on the topic. From the blog series on year-end updates to the knowledge base articles, below are helpful resources for easing your close:
- General Ledger: Year-End Blog, KB 888003
- Inventory: Year-End Blog, KB 872713
- Receivables Management: Year-End Blog, KB 857444
- Payables Management: Year-End Blog, KB 875169
- Fixed Assets: Year-End Blog, KB 865653
- Payroll: Year-End Blog, Documentation: U.S. Payroll, KB 850663, W-2 Tips and Tricks, Affordable Care Act, Canadian Payroll
- Analytical Accounting: Year-End Blog, KB 960356
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