2014 Dynamics SLYear End Event

Top 6 YE Questions

Closing Modules

AP / 1099’s

Payroll

W-2’s

Project Series

Opening Remarks• Welcome and Introductions• Archive Program• Dynamics SL 2015 – What is it? When? How?

Top 6 Y/E Questions

Top 6 Year End Support Questions1. Where do we get year end updates?

• Log into CustomerSource• https://

mbs.microsoft.com/customersource/northamerica/SL/downloads/taxregulatoryupdates/MSDSL2014yrendtaxpaid

• Tax updates - Load them AFTER closing payroll for the year

2. Can’t print AP checks with a check date of 2015?• Date must be in an open 1099 calendar year when printing

checks.• Go to AP, Processes, Close 1099 Year

• Can only have two 1099 calendar years’ worth of data

3. Can I close just the GL period instead of closing year?• No, must close year the period option will not work.• You can post back to any period or year if your GL Setup

posting option is set to allow postings to closed fiscal periods.

Top 5 Year End Support Questions4. My 1099 balances are wrong, how can I fix them?• Log into SL with a user that has initialize rights for vendor

maintenance screen.• Turn initialize mode on, go to AP, Vendor Maintenance, 1099 tab

will now have numbers that are black and you can change them.

5. Closed payroll and now I need to do a check for 2014, can I do that?

• Yes, when you run calculation in payroll just make sure you use a check date that is in the calendar year 2014. W2’s are based on check dates of checks.

6. Where can I get 1099 or W-2 forms?• IRS website

http://www.irs.gov/Businesses/Online-Ordering-for-Information-Returns-and-Employer-Returns

• Order online from Deluxe Business Checks and Solutions at the following website: http://www.microsoftbusinesschecks.com

• http://www.asillc.com/Solomon_Software/Files/ASI_W2_Order_Form.pdf

• Office supply stores

Top 6 Year End Support Questions

Top 5 Year End Support QuestionsAccounts Payable 1099s• 1099-MISC Form Changes • Box 11 – Foreign tax paid is no longer used to report foreign tax

paid on payments. The form layout remains the same. However, Box 11 is now dimmed and no longer used.

• Box 12 - Foreign country or U.S. possession is no longer used to report the name of the foreign country or U.S. possession for which the foreign tax was paid and reported in Box 11. Box 12 is now dimmed and no longer used.

• Filing 1099 Forms: You can file 1099 forms electronically or on paper. For more information, see “Filing Information Returns Electronically (FIRE)” on page 15.

• 1099 Electronic File Changes • Payer “A” Record Changes: • Box 11 - Foreign Tax Paid is removed in field positions 28 – 43,

Amount Code “9” is no longer a valid value.

Changes in the Year End Updates

Top 5 Year End Support QuestionsPayroll W-2s• No changes were required for the layout of the W-2 form or the W-3

form.

• W-2 Electronic File Changes • RA Submitter Record Changes:

• Location Address in positions 274 – 295 is now required entry field

• RO Employee Record Changes: • The HIRE Exempt Wages and Tips field in positions 100 - 110 is removed

• RU Total Record Changes: • The HIRE Exempt Wages and Tips field in positions 130 - 144 is removed

• RW Employee Wage Record Changes: • The Advanced Earned Income Credit field in positions 265 - 275 is removed

• RT Total Record Changes: • The Advanced Earned Income Credit field in positions 115 - 129 is removed

• RO Record Changes: • The Box 12, Code Z, money field name in positions 115 – 129 is changed from “Income Under Section 409A

on a Nonqualified Deferred Compensation Plan” to “Income Under a Nonqualified Deferred Compensation Plan That Fails to Satisfy Section 409A”

• RU Record Changes: • The Box 12, Code Z, money field name in positions 89 - 99 is changed from “Income Under Section 409A on

a Nonqualified Deferred Compensation Plan” to “Income Under a Nonqualified Deferred Compensation Plan That Fails to Satisfy Section 409A”

Changes in the Year End Updates

Closing/Timing/Reconciliation

Introduction to Closing Year End vs. Monthly

• Except for Tax reporting in AP and PR there technically is no difference Year vs. Period

• In Reality there is a difference Accuracy of Standing Accruals Budget Fulfillment Covenant Reporting Performance Reporting Tax implications Etc.

• However, Remember we don’t have to worry about not being able to post back or forward in all modules

Introduction to Closing Why do we have closings

• It is used to help us measure how we (as a company) are performing

• It is a Snap Shot of our financial position at one point in time

What are the biggest problems at closing• Timing/Cut-off• Reconciliations

Timing / Cut-off It should allow for reports to be published quick enough for

Management to react to the information before the next period close.

Planning for Year-End• What can be done ahead of time

With an integrated system like SL we recommend closing as close to Work Day 1 as possible• Easier to Coordinate consistency between modules• Minimize problems with Cash Manager

Most important, It should be consistent period after period including Year End.

Reconciliations Reconcile the Sub-Ledgers to the General Ledger

• AR, AP, Inventory, Cash Manager, Payroll, etc.• For Problem Sub-Ledgers consider reconciling on an interim basis

Make sure the Sub-Ledger is correct• i.e. that there are no problems within the Sub-Ledger

Make sure there are no Unprocessed batches• Don’t delay in releasing or posting batches

General LedgerThe GL should be the last module you close for the Period or

Year

Enter all Standard JE’s, adjusting JE’s, and Generate Recurring JE’s Ensure all sub-modules have been reconciled to the GL Analyze all transactions in Suspense accounts. Correct and post Verify all GL batches have been released and posted

• Review Batch Register in Summary Format• Field = batch. Status; Operator = IN; Value = B,H,S,U• Use Quick Query/Financial/General Ledger/Batches (filter status “is

not”, “P” or “V”) Verify all Allocations have been generated and posted Run Trial Balance

• Assets = Liabilities• Current Year Income = Profit & Loss Statement

Run Financial Statements (look at key #’s such as Revenue, GP, specific accts)

Accounts ReceivableIf you are using Order Management and Inventory then the AR module should be closed at the same time as Accounts Payable. There is an exception to this rule. If you are also using Flexible Billings, then AR will need to stay open until the Project Billing review process has been complete.

If using Order Management, ensure all shipments made prior to month end have been invoiced and processed thru the Sales Journal to AR ‘Invoice/Memo’ screen Ensure all activity such as Payments, Invoices, CM’s & DM’s that

relate to activity completed in the prior period have been entered into the AR Module

Verify all Recurring Invoices have been generated and posted for the period

Verify all batches have been released and posted• Batch Register in Summary Format• Field = batch. Status; Operator = IN; Value = B,H,S,U• Use Quick Query/Financial/General Ledger/Batches (filter status “is

not”, “P” or “V”) Verify Customer Trial Balance agrees with the AR Aging Report

Accounts Receivable Verify the Customer Trial Balance agrees to the General Ledger

Trial Balance. If not then:• Was a reconciliation completed last period• Run a Detail GL for the AR account(s) and look for transactions that did

not originate in AR• Run the AR Account Distribution Report by Transaction Type. Look for

documents that were debited and credited to the AR account.

InventoryIf you are using Order Management and Purchasing then the closing of the Inventory module must be coordinated with the closing of the AR module and the AP module.

Ensure all items that have physically been received are recorded as receipts either thru the Inventory Receipts screen or the Purchasing ‘Receipt/Invoice’ screen

Ensure all items that have been physically shipped are recorded as issues into Inventory and as Invoices in the AR ‘Invoice/Memo’ screen

Verify all batches have been released and posted Batch Register in Summary Format Field = batch. Status; Operator = IN; Value = B,H,S,U Use Quick Query/Financial/General Ledger/Batches (filter module IN and

status “is not”, “P” or “V”) Post all transactions to the General Ledger

Inventory Compare the Inventory Valuation Report to the Inventory Trial

Balance• Run GL Transactions report in ‘Unposted’ format with an ending period

in a future period. Note all transactions with a Journal Type of IN, PO, OM. These will have affected the Valuation Report an not the Trial Balance.

• Run the ‘Inventory Trial Balance/Valuation Variance’ report . Analyze any item that shows up on this report.

Compare the Inventory Trial Balance report to the General Ledger Trial Balance. If not then:

• Verify the Inventory Trial Balance was reconciled to the General Ledger Trial Balance at the end of the last period.

• Run the Detail GL report an review transactions which affected the Inventory account(s) that do not have a Journal Type of IN, OM or PO

Cash Manager The Cash Manager is both Date sensitive and Period Sensitive.

• It is date sensitive when updating the Cash Manager• It is period sensitive when updating the General Ledger

The Reconciliation function is two fold• A reconciliation between the Bank Statement and the Cash Manager• A reconciliation between the Cash Manager and the General Ledger

We recommend that you disassociate the ‘Cash Manager to the General Ledger reconciliation’ in the Bank Reconciliation screen and perform two separate reconciliations Cash Manager to the General Ledger Bank Statement to the Cash Manager

Cash Manager Reconcile the Cash Manager to the General Ledger

• Verify all batches have been released and posted. This includes the batches from CA, GL, AP, AR and PR Use Quick Query/Financial/General Ledger/Batches (filter module CA and

status “is not”, “P” or “V”)• Verify all Recurring Items have been generated and posted• Balance the General Ledger Balance to the Daily Cash Balance. If not

then: Verify the reconciliation was completed at the end of the last period Review the GL Transaction report in ‘Unposted’ format. Include future periods Review the Detail GL for transactions that do not have a Journal Type of GL, AP, AR, PR

or CA. Also look for transactions that do have a transaction type of IN,CM,DM,VO,AD,AC, etc.

• Make required adjustment. (Note: this may require an OA,OD,OP or OM transaction. (i.e. adjustments to CM but not the GL)

AP & 1099’s

Accounts Payable

Integration and Development

Full ReadFull Write

Full ReadLimited Write

If you are using the Inventory module and the Purchasing module then you need to coordinate AP closing with Inventory Ensure all available Supplier’s invoices have been entered Verify recurring batches have been generated and posted Verify all batches have been released and posted

• Review Batch Register in Summary Format• Field = batch. Status; Operator = IN; Value = B,H,S,U,K and R• Use Quick Query/Financial/General Ledger/Batches (filter module AP and status

“is not”, “P” or “V”) Verify Vendor Trial Balance agrees with Vendor Aged Report Verify Vendor Trial Balance agrees with the General Ledger Trial Balance. If

not then:• Was a reconciliation completed last period• Run a Detail GL for the AP account(s) and look for transactions that did not

originate in AP (or PR if Deductions are set up by Vendor) • Run the AP Account Distribution Report by Transaction Type. Look for documents

that were debited and credited to the AP account.

Accounts Payable 1099’s

Integration and Development

Full ReadFull Write

Full ReadLimited Write

Processing 1099’s New 2014 form :

http://www.irs.gov/pub/irs-prior/f1099msc--2014.pdf

The 1099 box 11 – "Foreign tax paid" and box 12 – "Foreign country or U.S. possession" that were added in the 2013 year end updates will be removed in the 2014 form.

1099 forms are updated based on check dates – not period-to post

1099 Calendar Year Control (Allows for two active 1099 years)• Date must be in an open 1099 year when printing AP Checks• You should purge the Oldest year only after you have completed the

final printing of 1099 forms

Year End Updates for 2014.• SL 2011 SP1, FP1, SP2 and SL2015

There will be changes to the 1099 forms and electronic media available for download the first half of December.

• Older versions (includes SL2011 without a SP)You may have to find an alternative method to printing 1099’s. This could be manual adjustments to the form or a different program to print the 1099’s.

Accounts Payable 1099’s

Integration and Development

Full ReadFull Write

Full ReadLimited Write

Processing 1099’s (Continued) How do we know they are correct

• Quick & Dirty Check Compare Payments in Vendor History Report (03.671.00) to 1099

Preview (03.730.00) Select field = Vend1099 ; Operator is equal; Value = ‘1’ If on a fiscal year vs. calendar year, you may have to use MS

Query

• Causes for Incorrect 1099’s Vendor was not originally set up as a 1099 Vendor Vouchers entered to an incorrect 1099 Box Be careful to include payments to vendors using a credit/debit

card and any bartering of goods or services

Accounts Payable 1099’s

Integration and Development

Full ReadFull Write

Full ReadLimited Write

Using Quick Query to Assist in the Year End Vendor Clean-up

1. Who Will Get a 1099?Quick Query/Financial/Accounts Payable/Vendor DetailsThe standard query pulls all the vendors which will require you to sort or filter on the third column “1099 Vendor”. To sort just click on the column heading. To filter click the arrow on the upper right hand side of the window to expand the filter criteria. Select the 1099 Vendor field, “is”, enter “1” (“0” for non 1099 vendors), and press tab to update the list. 1.

Accounts Payable 1099’s

Integration and Development

Full ReadFull Write

Full ReadLimited Write

Using Quick Query to Assist in the Year End Vendor Clean-up

2. Missing Information?After reviewing the list of your 1099 vendors use the same instructions as #1 to pull the same query information. Right click on the column headings and select “Choose Columns”. In the left window scroll down until

you find the “Tax Registration Number” then select “Add” then “OK”, your query will refresh with the tax ID on the right had side of the report. Using the excel icon on the top of the window you an export all the data to create a mailing list for your vendors to get W9’s or to call. Make your adjustments in the Vendor Maintenance window on the 1099 Info tab.

Accounts Payable 1099’s

Integration and Development

Full ReadFull Write

Using Quick Query to Assist in the Year End Vendor Clean-up

3. Validate Transaction Amounts.Quick Query/Financial/Accounts Payable/1099 Vendor BalancesIf you are using multiple companies this query will pull a separate row per company and vendor.

To filter click the arrow on the upper right hand side of the window to expand the filter criteria. Select the Company ID field, “is”, and enter the company ID you are looking at, then press tab to update the list. There will probably more columns then you want to look at, to remove columns right click on the column heading and select “Remove Column”. This query will give you the 1099 balance by vendor and by the 1099 box number. Export to excel using the excel icon on the top of the window.

Accounts Payable 1099’s

Integration and Development

Full ReadFull Write

Using Quick Query to Assist in the Year End Vendor Clean-up

The next step is to pull the vendor history. Quick Query/Financial/Accounts Payable/Vendor History. If you are using multiple companies follow the above instructions to filter to one company. You will need to filter this query to only show the fiscal year that you will be running 1099’s for. To add an additional click the button to add an additional filter. Once you have everything filtered you can export to excel using the excel icon on the top of the window.

Now that you have the 1099 Vendor Balances and the Vendor History in excel documents you can use a vlookup formula to pull in the Vendor History YTD Payments into the 1099 Vendor Balances document to look for any vendors that have purchases that may not match the 1099 amounts. Make your balance adjustments in the Vendor Maintenance window on the 1099 Info tab, in Initialization Mode.

Accounts Payable 1099’s

Integration and Development

Full ReadFull Write

Full ReadLimited Write

Processing 1099’s (Continued)• How do we Correct 1099’s

• 1099 amounts can be manually corrected using Initialize Mode in the Vendor Maintenance screen.

• Can run the rebuild 1099 history option in the AP Integrity check

Filing Electronically• If more than 250 1099’s you must file electronically to the IRS• Link for IRS 1099-MISC instructions

http://www.irs.gov/pub/irs-pdf/i1099msc.pdf• Link for MN Department of Revenue 1099 e-Services fact sheet http

://www.revenue.state.mn.us/businesses/withholding/factsheets/factsheet02a.pdf

Project Series

Close Period in Project Controller

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Project Series

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Project Series

Notes about Closing

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Project Series

Possible Errors / Warnings

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• Open AP Batches Exist Look for any AP batches that are in the current or previous periods that are not yet released. Check Voucher and Adjustment, Quick Voucher and Pre-Payment and Manual Check Entry. Run the Batch Register Report to confirm the open batches. You will need to delete, release or change the period number on these batches before the close can continue. Important - You must check all companies in the current database for this situation, not just the company you are currently logged in to. Do the same for the other modules that the error message states there are open batches in, i.e. GL, AR, etc.

• Warning: NN Timecards are Unposted This is a warning only and does not prevent the rollover. If ignored, then any timecards in the current period will be posted into the new period. You cannot post transactions into a closed project period. Print the Time Card Report which can be found in the Time & Expense for Projects module Note that MM/DD/YYYY is the last week ending date in the current period of Project If no records appear on the Timecard Report, the unposted timecards may contain no hours. The Timecard Report does not display timecards with no hours in it. Find the relevant timecards from the report, complete/reject/delete and approve them.

Project Series

Possible Errors / Warnings

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• Warning: NN Labor Entries are not Posted to GL Run GL Labor Posting in the Time and Expense module which can be found in the Time and Expense for Projects module under Processes. Fiscal Period to Post is entered using the YYYY-MM format. Important – You must run this process for all companies in the current database, not just the company you are currently logged in to.

• Untransferred AP Transaction exist Run Financial Transaction Transfer for Accounts Payable (or other modules that are stated in the error message) from the Project Controller module. It is good practice to run it for All. Enter the Fiscal Period in a MM-YYYY format.

• Unposted Allocations in current of prior period Manually re-run allocator for each unprocessed batch in Allocation Processor from the Allocator module. In the Batch Selection frame, specify the period, system code and batch number and click Allocate Company. If the Batch Selection field in greyed out, change the setup in Project Controller Setup from the Project Controller module. Check the Selection by Batch checkbox as shown below and return to the Allocation Processor screen.

Project Series

Other Items

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Project Series

Fiscal Period Maintenance

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Project Series

Payroll

Payroll• The Payroll module must be closed for the Year-End in the

accounting period that contains the 12/31/XX date. (i.e. where the check date is on or before 12/31/XX) and after the last Pay Period.

• When you close the Payroll module for the Year it creates new deduction records for the next year based on the deduction records for the current year. Therefore, the 2015 payroll calculation will not work until the year end close for Payroll has been completed in 2014.

• It is preferable to close the Month or Year in Payroll before the accounting period ending date. However, it is not a requirement. – Consider a bi-weekly payroll which has 26 Pay periods in an

Accounting System with 12 Periods. It might be more convenient to process a payroll with a check date after the accounting end date and post to a previous period. You will either have to accrue or reverse a portion of the expenses to match the Payroll expense in the right period

Payroll• Month-End Procedures

1. Verify all Payroll Batches have been released and posted• Batch Register in Summary Format• Field = batch. Status; Operator =NOT IN; Value = P, C, V

2. Release and/or post all transactions to the General Ledger3. Reconcile the Payroll module to the General Ledger

• Compare the P&L Accounts in the Account Distribution report in summary format with the General Ledger Trial Balance. If there are issues consider:– Run the GL Transaction report in Unposted format and include future

periods– Run the Detail GL report and look for transactions that did not originate

in Payroll– Verify that last month was reconciled

4. Consider reconciling the “Earnings & Deductions’ report in Total Format to the following reports• 941 Worksheet• Unemployment Worksheets (both Federal and State)

5. Print the Check Register for the period6. Close the period

Payroll• Quarter-End Procedures

Same procedures as Month-End procedures

Reconcile the “Earnings & Deductions’ report in Total Format to the following reports• 941 Worksheet• Unemployment Worksheets (both Federal and State)

Consider testing W-2’s• Use the ‘Earnings & Deduction’ report in Detail Format

Payroll• Year-End Procedures

Same procedures as Month-End and Quarter-End procedures

Verify all calculations for the current year are processed and cleared prior to closing the year. (i.e. there should not be anything in the check preview report)

Close the Payroll using the Year Closing Option

Install Year-End updates

– Note: this can be completed before or after you close Payroll for the year

Load 2015 Tax Table updates. This must be completed after you close the Payroll for the year.

– Tax tables from Microsoft will be available later this month.

Update deduction and earnings information for employees

– Such as new SUTA rate, new Insurance rates, etc.

Prepare W-2’s

Payroll• ACA reporting for 2015 and beyond

The Affordable Care Act (ACA) imposes significant information reporting responsibilities on employers starting with the 2015 calendar year.

New 1094 / 1095 forms to report information on healthcare benefits offered to eligible employees www.irs.gov/pub/irs-dft/f1094c--dft.pdf http://

mcgladrey.com/content/mcgladrey/en_US/what-we-do/services/tax/tax-alerts/new-information-reporting-requirements-under-the-affordable-care.html

http://www.insightaccountinggroup.com/news-views/state-federal-articles/year-end-payroll-preperation-tips-2014/

SL Software solution Silver Brook Systems Solution for those using the payroll system in SL www.silverbrook.com/ACA/ACA-Demo-2014-12-04.wmv

W-2 Processing

W-2 Processing The W2 Calculation process is run to calculate W2’s and can

be done at anytime, or multiple times if needed- Can be run by pay group and by employee if necessary

- Can be run for any calendar year that you are retaining detail (i.e. after Payroll has been closed for the year)

After the calculation is processed you can review by printing the W2 forms Compare to ‘Earnings Deduction’ report in Detail Format Or, after calculation review in Employee W2 History screen

Corrections to W2’s can be made in Employee W2 History screen Must be in Initialize mode If corrections are made (make sure to select ‘Protect Edited W2

Information’ is checked in the W2 calculation screen. This way edited information will not change

Corrections to Employee History screen Must be in initialize mode

W-2 Filing Run W2’s or prepare W2’s using W2 Electronic file Electronic filing of W2 data is supported for federal filing only

However, Minnesota accepts EFW2 fileIf more than 250 W2’s you must file electronically to the IRSIf more than 25 W2’s you must file electronically to the State of MN

See Fact Sheet 2 from MN Dept of Revenue

W-2 ProcessingTips on W2 Processing Some issues require modifying maintenance screens

Missing State Employer ID Deduction Maintenance(History)/W2 Control

Missing Federal Employer ID Company MaintenanceIncorrect Boxes Deduction or Earnings

Some issues require corrections on Employee W2 History screen Incorrect wages reported due to incorrect setup of tax exempt deductions Adjustments for taxable items such as taxable life insurance

Use Earnings & Deductions – Total format to balance to W2 information for state wages and state withholding amounts to the forms that are filed with your taxing authority

QTD & YTD information on the Earnings & Deduction report and the Unemployment Tax worksheet come from data in the Employee History screen. If an error is found in either report, correct in the Employee History screen

W-2 Deadlines

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