2012 Microsoft Dynamics GP Year End Closing

Presented by: Tami Johnsontjohnson@socius1.com

Agenda

• Guidelines & Recommendations• US Payroll• Inventory Control• Receivables Management• Payables Management• Fixed Assets• Analytical Accounting• General Ledger

Module Close Order

• Inventory Control• Receivables Management• Payables Management• Fixed Assets• Analytical Accounting• General Ledger

Payroll is independent from other modules

Guidelines

• Mainstream support for Dynamics GP 10 has ended. All customers current on their enhancement and running Dynamics GP 10 have been transitioned to extended support.

• All updates for Dynamics GP 10 end with the Round 1 U.S. tax tables for 2013 Payroll reporting releasing in January.

• To continue receiving updates, you must upgrade to GP 2010 or GP 2013.

Guidelines

Recommendations

• Use your resources– CustomerSource– Microsoft Dynamics GP Solutions Support– Socius

• Be prepared– Make sure all day-to-day activities are completed

• Be methodical– Review and follow year-end checklists– Verify ISV compatibility– Make backups

Recommendations

• Other Resources– GPUG (www.gpug.com)– GPWindow.com– MyGPSearch.com– Internet search

US Payroll Year End Close

• Required Installation this year• Supported versions– Dynamics GP 10.0– Dynamics GP 2010 – Dynamics GP 2013

• Release Dates– 2012 Year End Update – Final updated released!– 2013 Tax Update (Round 1) – Mid-December 2012– 2013 Tax Update (Round 2) – January 2013

Payroll Year End Changes

• No W-2 or W-3 Form Changes• EFW2 Changes (Electronic Filing)• 2013 New Medicare Taxes on High Earners• Product Quality Fixes around Payroll Year-End

Payroll Year End Changes

• What about GP 10?– Will receive the 2012 Payroll Year-end Update– Will receive the 2013 Round 1 Payroll Tax Update– Will not receive the code changes needed for 2013

Q1 941 form update (Pending IRS finalization)

2013 Round 1 Tax

• FICA Social Security Limit $113,700• FICA Employee Social Security Rate 6.2• 2013 New Medicare Taxes on High Earners– Employee only after $200,000 extra .9 (2.35)

• State – Kansas• Circular E not final

US Payroll Year End Close Checklist

• KB 850663: “Year-end Closing Procedures for Microsoft Dynamics GP Payroll”

US Payroll Year End Close Procedures

• Verify that you have installed the latest 2012 payroll tax update

• Complete all pay runs for the current year • Complete all month-end, period-end, or

quarter-end procedures for the current year • Make a backup of the original file • Install the Year-End Update • Create the Year-End file • Make a backup of the new file

US Payroll Year End Close Procedures

• Verify W-2 and 1099-R statement information • Print the W-2 statements and the W-3

Transmittal form • Print the 1099-R forms and the 1096

Transmittal form • (Optional:) Create the W-2 Electronic file • (Optional:) Archive inactive employee Human

Resources information • Set up fiscal periods for 2013

US Payroll Year End Close Procedures

• (Optional:) Close fiscal periods for the payroll series for 2012

• Install the payroll tax update for 2013

Remove Year-End Wage File

Remove Year-End Wage File

Deduction Missing from W-2

• Edit box and label in deduction setup

• Roll down to employees

US Payroll Year End Close Alternate Procedures

Follow this checklist if 2013 pay runs must be processed prior to completing the 2012 year-end closing procedures

• Verify that you have installed the latest 2012 payroll tax update

• Complete all pay runs for the current year • (Optional:) Complete all month-end, period-

end, or quarter-end procedures for the current year

• Make a backup of the original file • Install the Year-End Update

US Payroll Year End CloseAlternate Procedures

• Create the year-end file• Make a backup of the new file • Verify W-2 and 1099-R statement information • (Optional:) Archive inactive employee Human

Resources information • Set up Fiscal Periods for 2013 • (Optional:) Close the fiscal periods for the

Payroll series for 2012 • Install the payroll tax update for 2013

US Payroll Year End Close Alternate Procedures

• Process the 2013 pay runs. The user date must be set to 2013.

• Print the W-2 statements and the W-3 Transmittal form

• Print the 1099-R forms and the 1096 Transmittal form

• (Optional:) Create the W-2 Electronic file

Inventory Control Year End Close

• The Inventory module should be closed at the end of your Fiscal year, before any new transactions that would affect inventory quantities are posted

Inventory Control Year End Close Results

• Transfers all summarized current-year Quantity, Cost and Sales amounts to last-year for the Items for which you have been keeping summarized Sales History

• Updates each Item’s Beginning Quantity from the Quantity on Hand at each site

• Zeros the Quantity Sold field in the Item Quantities Maintenance (Cards - Inventory – Quantities/Sites) for each Site

Inventory Control Year End Close Results

• Additional Options– Remove Discontinued Items– Remove Sold Receipts– Remove Sold Lot Attributes– Update Item’s Standard Cost

Inventory Control Year End Close Checklist

• KB 872713: “Year-End Closing Procedures in Inventory Control in Microsoft Dynamics GP”

Inventory Control Year End Close Procedures

• Post all transactions for the year• Reconcile inventory quantities (GP or PSTL)• Complete a physical inventory count, and then

post any adjustments• Print additional reports• Make a backup• Close the year

Inventory Control Year End CloseProcedures

• Close the fiscal periods for the Inventory series (optional)

• Make a final backup

Inventory Control Year End CloseProcedures

• Make restorable backups when recommended in KB 872713

• Reconcile Sales Order Processing and/or Purchase Order Processing, in addition to the Inventory module prior to closing

• Reconcile Order: SOP, POP, and then Inventory

Inventory Control Year End CloseGuidelines

• If you are using Dynamics GP 2010 or Dynamics GP 10.0 SP2 or later, year-end may be a good time to implement the Historical Inventory Trial Balance (HITB) report

Inventory Control Year End CloseAdditional Resources

• KB 872713 : “Year-End Closing procedures in Inventory Control in Microsoft Dynamics GP”

• KB 864622: “Information about the order in which the reconcile procedures should be run in Microsoft Dynamics GP”

• KB 855316: “Inventory Accidentally Closed Twice”

• KB 872182: “Inventory year end close does not remove discontinued items”

Receivables Management Year End Close

• The Calendar Year end close should be done at the end of the calendar year prior to posting any transactions in the next calendar year

• The Fiscal Year end close should be done at the end of the fiscal year prior to posting any transactions in the next fiscal year

• The Calendar Year end close clears the Calendar Year-to-Date Finance Charges and moves them to the Last Year Calendar field in Customer Finance Charge Summary (Cards| Sales|Summary|Finance Charges)

Receivables Management Year End Close Results

• The Fiscal Year end close transfers all amounts other than the Calendar YTD Finance Charge amount to the Last Year column in Customer Summary using the Amounts Since Last Closed View (Cards|Sales|Summary)

Receivables Management Year End CloseResults

Receivables Management Year End CloseResults

• KB 857444: “Year-end closing procedures for Receivables Management in Microsoft Dynamics GP”

Receivables Management Year End Close Checklist

• Post all the sales and receivables transactions for the year.

• Make a pre-year-end closing backup. • Close the year. • Close the fiscal periods. (This step is optional.) • Close the tax year (RM and PM at the same

time)• Make a post-year-end closing backup.

Receivables Management Year End Close Procedures

Receivables Management Year End Close Procedures

• Affects tax details

• Closing the tax year deletes the prior year data

• BACKUP!

• Make restorable backups when recommended in KB 857444

• Receivables Management is not completely date sensitive

• As there are some date sensitive features the best option to close the year on time

Receivables Management Year End Close Guidelines

• KB 857444 : “Year-end closing procedures for Receivables Management in Microsoft Dynamics GP”

• KB 851140 : “Information about performing the year-end closing procedure in Receivables Management in Microsoft Dynamics GP after December 31”

• KB 856865: “Removing outdated statement runs from the Reprint Statements Window”

Receivables Management Year End CloseAdditional Resources

Payables Management Year End Close

• The Calendar Year End Close Routine should be run at the end of the Calendar year prior to posting transactions in the next Calendar year

• The Fiscal Year End Close Routine should be run at the end of the Fiscal year prior to posting transactions in the next Fiscal year

• The Calendar Year End Close process transfers the 1099 Amounts from the Year to Date column to the Last Year column in the Amounts Since Last Close view in the Vendor Yearly Summary window

Payables Management Year End Close Results

• The Fiscal Year End Close Process transfers all other amounts from the Year to Date column to

the Last Year column in the Amounts Since Last Close view

*If the amounts are incorrect in the Amount Since Last Close View contact support for scripts that can be ran to correct the amounts.

Payables Management Year End Close Results

Payables Management Year End Close Results

• KB 875169: “Year-end closing procedures for the Payables Management module in Microsoft Dynamics GP”

Payables Management Year End Close Checklist

• Post all transactions for the year. • Print the Aged Trial Balance with Options

report. • Print the Vendor Period Analysis Report. • Install the Payroll year-end update (optional) • Make a backup that is named "Pre-1099 Edits." • Verify the 1099 information and edit it if it is

required.

Payables Management Year End Close Procedures

• Print the 1099 statements. • Make a backup that is named "Pre Year-End." • Close the year. • Close the fiscal periods. • Close the tax year. • Make a backup that is named "Post Year-End."

Payables Management Year End Close Procedures

• Make sure transactions for the new year are saved, but not posted

• Payables Management is not fully date sensitive, so it is still recommended that you process your year end closing routines at the actual year end

Payables Management Year End Close Guidelines

• 1099 Information will not auto-populate if the transactions were not processed as 1099 transactions at the time of the posting– Use KB 918536 to correct this. – Use 1099 Details window to edit 1099 amounts individually

(Cards | Purchasing | 1099 Details)– PSTL 1099 Modifier

Payables Management Year End Close Guidelines

Payables Management Year End Close Guidelines

• Change aounts month by month or for the entire year.

Payables Management Year End Close Changes

• 1099 DIV and 1099 MISC– Movement of fields and checkboxes to accommodate

forms.– Increase and decrease in height of fields to accommodate

forms.

• (Optional) IRS will allow filers to truncate/mask a recipients ID numbers (SSN, ITIN or ATIN).– Since this is optional and not for all ID numbers, no

change will be made to mask the ID number in Microsoft Dynamics GP.

Fixed Assets Year End Close

• The Fixed Assets Year End Close should be run after closing Payables Management, but before closing the General Ledger

• Each book can be closed separately, but you must close all books before doing any processing in Fixed Assets for the new year

Fixed Assets Year End Close Results

• Asset General Information Window (Cards | Fixed Assets | General):– The YTD Maintenance amount is cleared from the Expand

last Maintenance Date Window – The Quantity is copied to the Begin Quantity field in the

Expand Quantity Window

Fixed Assets Year End Close Results

• Asset Book Window (Cards | Fixed Assets | Book):– The YTD Depreciation Amount is cleared– Cost Basis is copied to Begin Year Cost field– Life to Date Depreciation is copied to Begin Reserve field– Salvage Value is copied to Begin Salvage field

• The Current Fiscal Year is increased for each closed book

Fixed Assets Year End Close Results

Fixed Assets Year End Close Checklist

• KB 865653: “The year-end closing procedures for the Fixed Asset Management module in Microsoft Dynamics GP”

Fixed Assets Year End Close Procedures

• Perform all the year-end closing procedures for Payables Management

• Enter all the fixed asset transactions for the current fiscal year

• Depreciate all assets through the last day of the current fiscal year

• Perform the GL Posting (GL Interface) process• Run any year-end reports that you want to keep

as part of the year-end financial records

Fixed Assets Year End Close Procedures

• Make sure hat the Fixed Assets calendar is built correctly

• Verify that the quarters are set up correctly for all the fiscal years

• Create a backup• Perform the fixed assets year-end closing

routine

Fixed Assets Year End Guidelines

• You must depreciate all assets through the last day of the current FA year before you close the year

Fixed Assets Year End Changes

• Luxury Auto Maximum Depreciation Deduction Amounts– The maximum depreciation deduction amounts allowed for

luxury vehicles has been updated for assets placed in service in calendar year 2012 to comply with IRS Guidelines: http://www.irs.gov/irb/2012-14_IRB/ar09.htm

• Low Value Asset Bug 59651 has been fixed– Low value assets (less than a penny per period) can now be

depreciated without a problem. The system will not hang.

Analytical Accounting Year End Close Results

• When the year-end close process is run for General Ledger in Microsoft Dynamics GP, it automatically moves the Analytical Accounting transactions from current to historical AA tables.

Analytical Accounting Year End Close Results

• Analytical Accounting year end close option– This option enables balance brought forward entries on

dimensions– Analytical Accounting data closes with General Ledger

regardless of whether this option is marked

Analytical Accounting Year End Close Results

Analytical Accounting Year End Close Results

Analytical Accounting Year End Close Checklist

• KB 960356 : “The year-end close procedures for Analytical Accounting”

Analytical Accounting Year End Close Procedures

• Check the data (see KB 960356 for scripts)• Make sure that AA dimensions are set to close

with GL– Tools|Setup|Company|Analytical Accounting|Options– Cards|Financial|Analytical Accounting|Transaction

Dimensions

• Move data to history for the earlier closed years, if applicable

• Run GL year-end close process to move AA balances and create BBF's

Analytical Accounting Year End Close Procedures

• Move data to history for the earlier closed years, if applicable

• Run GL year-end close process to move AA balances and create BBF's

General Ledger Year End Close

• The General Ledger Year End Close should be done after you have completed the Year End close for all other modules

• Other modules should be closed in the following order:– Inventory– Receivables– Payables– Fixed Assets

General Ledger Year End Close Results

• The year end close process closes all Profit and Loss accounts out to Retained Earnings, leaving the P&L accounts with a zero balance at the beginning of the new year

• All Balance Sheet accounts are updated with the beginning balance in the new year which will be the same as the ending balance from the year you are closing

General Ledger Year End Close Results

• The Retained earnings account(s) are updated with the amount from all P&L accounts if you close to one Retained Earnings account, or with the amount from the P&L accounts in that division if you close to divisional Retained Earnings

• The Retained Earnings accounts are the only Balance Sheet accounts that should have a different beginning balance than the ending balance from the year that you are closing

General Ledger Year End Close Results

• The year end close routine moves all open year transactions from the GL20000 table to the GL30000 table

• Balance brought forward journal entries are created in the GL20000

• The Fiscal Period tables are updated to mark the year that you are closing as historical

• Inactive GL Accounts removed• Moves AA data to history and creates BBF entries

on dimensions

General Ledger Year End Close Checklist

• KB 888003: “Year-end closing procedures for General Ledger in Microsoft Dynamics GP”

FAQ section covers most common year end close issues

General Ledger Year End Close Procedures

• Complete the posting procedures and the closing procedures for other modules.Post the final adjusting entries in General Ledger.

• Print an account list to verify the posting type of each account.

• Close the last period of the fiscal year.• Optional: Perform file maintenance on the

Financial series group of modules.

General Ledger Year End Close Procedures

• Verify the settings in the General Ledger Setup window.

• Make a backup.• Print a final Detailed Trial Balance report.• Print the year-end financial statements.• Set up a new fiscal year.• Close the fiscal year.• Close all the fiscal periods for all the series.

General Ledger Year End Close Procedures

• Adjust the budget figures for the new year, and then print the financial statements.

• Make a backup.

General Ledger Year End Close Guidelines

• Remember to make restorable backups as needed and follow ALL the steps in KB 888003

• Make sure that you have enough free space on the server to allow for the GL20000 table to double in size

• Perform the Year End Close at the server• Have all other users out of Dynamics GP when

you perform the year end close

General Ledger Year End Close Guidelines

• The year end close routine does appear to hang at 50%, but it is still processing, so let it run

General Ledger Year End Close Guidelines

General Ledger Year End CloseAdditional Resources

• KB 871679: “How to set up an adjusting period”• KB 850615: “How to use divisional retained

earnings accounts”• KB 864913: “Changing the posting type on an

account after you close the year” • KB 850741: “ Retained Earnings account not

found”

General Ledger Year End CloseAdditional Resources

• KB 857582: “Query to clear beginning balances for unit accounts”

• KB 856550: “General Ledger year end close still in process and batches cannot be posted”

• KB 2452542: “Inactive GL Accounts deleted during Year-End Close process for General Ledger”

Thank You!

Happy

New

Year!