Year-end closing procedures for Receivables Management in Microsoft Dynamics GP

Several clients have asked for detailed steps for closing the Receivables Management module in Dynamics GP.

The information below comes from Microsoft Support, Article ID: 857444, updated September 16, 2016. We hope this helps with the Receivables year end close.

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Year-end closing checklist

You can use this checklist for the end of the fiscal year and for the end of the calendar year. 

Note Although Receivables Management is date sensitive, the following items are updated based on the closing of Receivables Management:

• The SmartList objects
• The Receivables Management summary reports
• The Amounts Since Last Close view in the Customer Summary window

Therefore, we recommend that you follow these steps so that the SmartList objects, the Receivables Management summary reports, and the Amounts Since Last Close view contain the correct information:

1. Post all the sales and receivables transactions for the year.
2. Make a pre-year-end closing backup.
3. Close the year.
4. Close the fiscal periods. (This step is optional.)
5. Close the tax year.
6. Make a post-year-end closing backup.

Step 1: Post all the sales and receivables transactions for the year

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 enter transactions for the next year, these areas will contain incorrect information. However, if you have to change the information, you can change the information in the Amounts Since Last Close view in the Customer Summary window and in the Customer Finance Charge Summary window. The following areas are the areas of Microsoft Dynamics GP that are not date sensitive.

• The Amounts Since Last Close view in the Customer Summary window
  --To open the Amounts Since Last Close view in the Customer Summary window, follow these steps:
  1. On the Cards menu, point to Sales, and then click Summary.
  2. In the Customer Summary window, type a customer ID in the Customer ID box.
  3. In the Summary View list, click Amounts Since Last Close.
• The Customer Finance Charge Summary window
  To open the Customer Finance Charge Summary window, follow these steps:
  1. On the Cards menu, point to Sales, and then click Summary.
  2. In the Customer Summary window, type a customer ID in the Customer ID field.
  3. Click Finance Charges.
• The SmartList objects
  To view the SmartList columns that are affected, follow these steps:
  1. In Microsoft Dynamics GP, click Columns on the Microsoft Dynamics GP menu, click SmartList, expand Sales, expand Customers, and then click Add.
  2. Select the following items in the Available Columns list.
     Note The items that are flagged with an asterisk are affected by the calendar year-end close. All the other items are affected by the fiscal year-end close.
     • Average Days to Pay - Year
     • Finance Charges CYTD*
     • Finance Charges LYR Calendar*
     • High Balance LYR
     • High Balance YTD
     • Number of ADTP Documents - LYR
     • Number of ADTP Documents - Year
     • Number of NSF Checks YTD
     • Total # FC LYR*
     • Total # FC YTD*
     • Total # Invoices LYR
     • Total # Invoices YTD
     • Total Amount of NSF Check YTD
     • Total Bad Debt LYR
     • Total Bad Debt YTD
     • Total Cash Received LYR
     • Total Cash Received YTD
     • Total Discounts Available YTD
     • Total Discounts Taken LYR
     • Total Discounts Taken YTD
     • Total Finance Charges LYR*
     • Total Finance Charges YTD*
     • Total Returns LYR
     • Total Returns YTD
     • Total Sales LYR
     • Total Sales YTD
     • Total Waived FC LYR*
     • Total Waived FC YTD*
     • Total Writeoffs LYR
     • Total Writeoffs YTD
     • Unpaid Finance Charges YTD*
     • Write Offs LYR
     • Write Offs YTD
  3. Click OK.
  4. Click OK.

Step 2: Make a pre-year-end closing backup

Create a backup before you close the year. Put the backup in safe, permanent storage. This backup makes sure that you have a permanent record of the company's 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. In Microsoft Dynamics GP, 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 PreYearEndClosingBackup20XX. (Enter the year for the XX placeholder.)

Step 3: Close the year

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Sales, and then click Year-End Close.
2. 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.
3. 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 details
The calendar year-end process in Microsoft Dynamics GP clears the following fields in the Customer Summary window:

• Finance Charges CYTD
• Total # FC YTD
• Total Finance Charges YTD
• Total Waived FC YTD
• Unpaid Finance Charges YTD

The calendar year-end process updates the amounts in the following fields:

• *Finance Charges LYR Calendar
• *Total # FC LYR

Fiscal year details
The fiscal year-end process in Microsoft Dynamics GP clears the following fields in the Customer Summary 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 YTD

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 LYR

Step 4: Close the fiscal periods (This step is optional)

To prevent users from accidentally posting transactions to the wrong period or to the wrong year, use the Fiscal Periods Setup window to close all fiscal periods that are still open for the year. Before you close fiscal periods, verify that you have posted all the transactions for the period and for the year for all modules. If you must later post transactions to a fiscal period that you already closed, you can return to the Fiscal Periods Setup window to reopen the period so that you can post the transactions.
To close a fiscal period, follow these steps:

1. In Microsoft Dynamics GP, 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 Sales check box for the period that you want to close.

Step 5: Close the tax year

Note Follow these steps only after you complete the year-end closing procedures for all the sales and purchasing modules.
To close the tax year, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Company, and then click Tax Year-End Close.
2. Click to select the Close Year check box, and then click to select the Print Report check box.
3. Click Process.
   Note We recommend that you keep a paper copy of the year-end report together with the permanent year-end audit records.

Step 6: Make 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 company's 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. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.
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 PostYearEndClosingBackup20XX. (Enter the year for the XX placeholder.)

Year-to-date finance charges on customer statements for December and for January

Year-to-date finance charges are not automatically printed on customer statements for December and for January.

December statements

To add the year-to-date finance charges to the December statements, follow these steps:

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Customize, and then click Report Writer.
2. In the Product list, click Microsoft Dynamics GP, and then click OK.
3. Click Reports.
4. Use the appropriate method:
   • If you have not previously modified the statement form, click the statement form that you print in the Original Reports list, click Insert, and then click the statement form in the Modified Reports list.
   • If you previously modified the statement form, click the statement form in the Modified Reports list.
5. Click Open.
6. In the Report Definition window, click Tables.
7. In the Report Table Relationships window, click RM Customer MSTR, and then click New.
8. In the Related Tables window, click Customer Master Summary, and then click OK.
9. Click Close.
10. Click Layout.
11. In the resource list in the Toolbox box, click Customer Master Summary.
12. In the field list, drag Finance Charges CYTD to the layout of the report. You can position this field in any section of the report.
13. On the File menu, click Microsoft Dynamics GP. When you are prompted to save the changes, click Save.
14. If you have not previously modified this report, you must grant security to the report. To do this, use the steps below:
    1. On the Microsoft Dynamics GP menu, point to Tools, point to Setup, point to Systems, and then click Alternate/Modified Forms and Reports.
    2. In the ID box, enter the user ID.
    3. In the Product list, click
       Microsoft Dynamics GP.
    4. In the Type list, click Reports.
    5. Expand Sales, and then expand the node of the modified form.
    6. Click Microsoft Dynamics GP (Modified).

January statements

To add the year-to-date finance charges to the January statements, follow these steps:

1. Follow steps 1 through 11 in the "December statements" section.
2. In the field list, drag Finance Charges LYR Calendar to the layout of the report. You can position this field in any section of the report.
3. Follow steps 13 and 14 in the "December statements" section.

Please contact us for more information on managing your year end close or contact us about  how we can help you with a Dynamics implementation or upgrade.

Send an email to Support@dynamicsmct.com or call us at Toll Free:  +1.780-555-6144.

Submitted by Judith Hirst CPA, CMA MCP Senior Financial Analyst

www.dynamicsmct.com

Five Reasons To Keep The Vendor (Supplier) List Clean

Figure 1 – The push broom used to keep shop floors clean

Most organizations have a safety policy in place.  High on the list of safety is keeping the premises clean and tidy.  An extension of this "clean and tidy" practice should be to keep the vendor list clean in the ERP system.

Why? Here are five reasons to keep the vendor list clean.

1. The longer and messier that the vendor list is, the more likely coding errors will happen. 
2. This increases the chances of the wrong vendor being paid for an invoice assigned to them in error.
3. Now, there are two voids to process, one for the cheque payment, and one for the invoice.
4. If Vendors have not been used in the last two years, inactivate them to reduce the risk that invoices will inadvertently be assigned to them. (In Dynamics GP, for example, run a SmartList to show vendors that have not received payment for the last two years, and then inactivate them.)
5. Managing the vendor list and reviewing it quarterly or semiannually will help to minimize the occurrence of fraudulent vendors, that is, vendors who submit the same invoice under different names.  You will catch these errors  because  you are watching.

The team at Dynamics MCT Consulting has been implementing Microsoft Dynamics ERP Business Solutions for more than 15 years and provides a full range of Microsoft Dynamics services.  Please contact us for more information on capabilities or how we can help you with a Dynamics implementation.

Send an email to Support@dynamicsmct.com or call us at Toll Free:  +1.780-555-6144.

Submitted by Judith Hirst CPA, CMA MCP Senior Financial Analyst

www.dynamicsmct.com

Year End Inventory Close in Dynamics GP 2010 to GP 2015

 

Some clients have asked for an inventory checklist for the year end close.  Microsoft has provided one in Article ID: 872713.  It applies to Dynamics GP versions:

· Microsoft Dynamics GP 2015

· Microsoft Dynamics GP 2013

· Microsoft Dynamics GP 2010

Microsoft Dynamics GP 10.0

 

INVENTORY YEAR END CLOSE CHECKLIST

 

1. Post all transactions for the year.

Make sure that all Invoicing transactions, Sales Order Processing transactions, and Inventory transactions for the current year have been entered and then posted before you close the year. This is true so that historical information is accurate for the year you are closing, and year-to-date amounts are accurately stated for the new year.

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, follow this step: 

                o In Microsoft Dynamics GP, 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.

3. Complete a physical inventory count, and then post any adjustments.

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. To open the Stock Count Entry window, point to Inventory on the Transactions menu, and then click Stock Count Entry.

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

To access the Reports palette, point to Inventory on the Reports menu. Use selections from the Inventory Reports palette to print these reports. 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.

5. Make a backup.

Make a backup of all company data. This is true 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:

o 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.

o Updates the amount in the item's 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.

o Zeros the Quantity Sold field in Item Quantities Maintenance window for each site.

o Removes purchase receipts and cost change history for items that have been completely sold.

o Removes any discontinued items from the Item records that have been completely sold.

o Removes any lot attributes from the records of lot numbered items if they have been completely sold.

o 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.

o Uses the Inventory Year-End Closing window to close the year.

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, follow this step: 

o In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods.

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 company's financial position at the time that you closed the year.

Year End Checklist for Dynamics GP–General Ledger

 

December 31 has come and gone, and now, if your year end is December 31, you need to start thinking about year end closing, and preparing financial statements.

As all accountants know, the year end process can be a big job and this makes it rather daunting. 

Microsoft has provided a year end closing checklist for Dynamics GP General Ledger and the supporting modules in their article - Article ID: 888003 - Last Review: November 19, 2015 - Revision: 27.0

The information in this document works with the following versions.

• Microsoft Dynamics GP 2015
• Microsoft Dynamics GP 2013
• Microsoft Dynamics GP 2010

Note that in the information below, the checklist comes first and then is supported by detailed explanations.   Note that while you can click on the links, the links may not be available or you may not have access to CustomerSource or PartnerSource.  Do not worry about that because, as mentioned earlier, the detail information is below the checklist.

Check this blog for other posts about  information about year end closing for individual modules.

 

Remember – the most important thing to do before you start the closing is to make a backup of the company.

 

Year-end closing checklist

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.
6. Verify the settings in the General Ledger Setup window.
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.
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.

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
      For more information, click the following article number to view the article in the Microsoft Knowledge Base:

872713  (https://support.microsoft.com/kb/872713/ ) Year-End Closing procedures in Inventory Control in Microsoft Dynamics GP

2. Receivables Management
   For more information, click the following article number to view the article in the Microsoft Knowledge Base:

857444  (https://support.microsoft.com/kb/857444/ ) Year-end closing procedures for Receivables Management in Microsoft Dynamics GP

3. Payables Management
   For more information, click the following article number to view the article in the Microsoft Knowledge Base:

875169  (https://support.microsoft.com/kb/875169/ ) Year-end closing procedures for the Payables Management module in Microsoft Dynamics GP

4. Fixed Asset Management
   For more information, click the following article number to view the article in the Microsoft Knowledge Base:

865653  (https://support.microsoft.com/kb/865653/ ) The year-end closing procedures for the Fixed Asset Management module in Microsoft Dynamics GP

5. Analytical Accounting
   For Microsoft Dynamics GP 10.0 Service Pack 2 and greater, functionality was added to consolidate balances for dimensions in Analytical Accounting. Please review KB 960356 to make sure you have properly marked the dimensions that you want to be consolidated during the year-end process. Please note that there is no separate year-end process that needs to be run in the Analytical Accounting module. When the year-end close process is run for General Ledger, it will automatically consolidate the balances and move the transactions in Analytical Accounting for dimensions that were properly marked. We encourage you to ensure your AA data matches GL data by executing the scripts in KB 2910626 (https://support.microsoft.com/kb/2916026) before closing the GL year.
   For more information, click the following article number to view the article in the Microsoft Knowledge Base:

960356  (https://support.microsoft.com/kb/960356/ ) The year-end close procedures for Analytical Accounting in Microsoft Dynamics GP 10.0 Service Pack 2 and in later versions

2. Note Year-end procedures for Payroll are independent of the procedures in other modules. These procedures are always performed at the end of the calendar year. For more information, click the following article number to view the article in the Microsoft Knowledge Base:
3. 850663  (https://support.microsoft.com/kb/850663/ ) Year-end closing procedures for Microsoft Dynamics GP Payroll

4. 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 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.
   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. For more information about how to create auditing periods, click the following article number to view the article in the Microsoft Knowledge Base:

871679  (https://support.microsoft.com/kb/871679/ ) How to set up an adjusting period in General Ledger in Microsoft Dynamics GP

Note If you are using closing periods and you reconcile, the transactions all move to the first period with the start date.

5. 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.

1. In the Reports list, select All Accounts, and then click New.
2. In the Option box, type all accounts.
3. 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. For more information, see Q17 in the Frequently Asked Questions section.
4. Click Destination to specify a report destination, and then click OK.
5. Click Print.
5. Close the last period of the fiscal year.
   This step is 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.
   Notes

• 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.
• 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.

For more information, click the following article number to view the article in the Microsoft Knowledge Base:

874932  (https://support.microsoft.com/kb/874932/ ) "Failed to Load Company Calendar" checklist for FRx

7. Optional: Perform file maintenance on the Financial series group of modules.
   Run the check links procedure on the Financial series group of modules.
8. 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.
9. Make a backup.
   Make a backup of all company data, and then put the backup in safe permanent storage. The backup gives you a permanent record of the company's financial position at the end of the year. The backup can then be restored later if it is required.
10. 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.
11. Print the year-end financial statements.
    Print any year-end financial statements that are required. The most common financial statements include the following statements:
    • Balance Sheet
    • Profit and Loss Statement
    • Statement of Cash Flows
    • Statement of Retained Earnings
12. 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.
13. Close the fiscal year.
    To close the fiscal year, follow these steps:

0. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Financial, and then click Year-End Closing.
1. 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 year's 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 year's profit or loss to accounts that contain a specific account segment. This process is known as closing to a divisional retained earnings account. For more information, click the following article number to view the article in the Microsoft Knowledge Base:

850615  (https://support.microsoft.com/kb/850615/ ) How to use divisional retained earnings accounts in General Ledger in Microsoft Dynamics GP

See the "Frequently asked questions" section for more information about how to close to divisional retained earnings accounts.

2. 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.
3. 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:

• The year-end closing routine reconciles and summarizes the general ledger balances that accumulated throughout the year.
• 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. These accounts can be deleted even if budget amounts from past years are associated with these accounts.
• The year-end closing routine moves all profit and loss account balances to the retained earnings account.
• 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.
• 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 company's permanent records. The Year-End Closing report cannot be reprinted.
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

14. Close all the fiscal periods for all the series.
    This step is 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.
15. 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:
    • Excel-Based Budgeting
    • Budget Maintenance
    • 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.
If you are using Advanced Financial Analysis to print the financial statements, you must update the report layout to reflect the current fiscal year. To do this, follow these steps:

3. On the Reports menu, point to Financial, and then click Advanced Financial.
4. In the Reports list, select the financial statement, click Open, and then click Layout.
5. Double-click each column button to verify the Column Definition for the column. For example, double-click the C1 button or the C2 button.
6. If the column type is set to Period Range, to Year-to-Date, or to Variable Year-to-Date, select the current fiscal year in the Year list, and then click OK.
7. Repeat steps 13a through 13d for each column of each report.
15. Make a backup.
    Make a backup of all the company data, and then put the backup in safe permanent storage. The backup gives you a permanent record of the company's financial position at the start of the new year. This backup can be restored later if it is required.

 

For assistance with your year end close, please contact Dynamics MCT Consulting Ltd at Support@dynamicsmct.com.

 

Post submitted by:

Judith Hirst BA CPA, CMA MCP