Learn the steps for closing key Dynamics GP modules, including (but not limited to) GL, AR, AP and Payroll.

1. Presented by: Tami Johnson
tjohnson@socius1.com

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

3. Module Close Order
• Inventory Control
• Receivables Management
• Payables Management
• Fixed Assets
• Analytical Accounting
• General Ledger
Payroll is independent from other modules

4. 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.

5. Guidelines

6. 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

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

8. 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

9. 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

10. 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)

11. 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

12. US Payroll Year End Close Checklist
• KB 850663: “Year-end Closing Procedures for
Microsoft Dynamics GP Payroll”

13. 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

14. 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

15. US Payroll Year End Close Procedures
• (Optional:) Close fiscal periods for the payroll
series for 2012
• Install the payroll tax update for 2013

16. Remove Year-End Wage File

17. Remove Year-End Wage File

18. Deduction Missing from W-2
• Edit box and
label in
deduction
setup
• Roll down to
employees

19. 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

20. US Payroll Year End Close
Alternate 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

21. 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

22. 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

23. 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

24. Inventory Control Year End Close
Results
• Additional Options
– Remove Discontinued Items
– Remove Sold Receipts
– Remove Sold Lot Attributes
– Update Item’s Standard Cost

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

26. 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

27. Inventory Control Year End Close
Procedures
• Close the fiscal periods for the Inventory series
(optional)
• Make a final backup

28. Inventory Control Year End Close
Procedures
• 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

29. Inventory Control Year End Close
Guidelines
• 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

30. Inventory Control Year End Close
Additional 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”

31. 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

32. Receivables Management Year End Close
Results
• 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)

33. 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)

34. Receivables Management Year End Close
Results

35. Receivables Management Year End Close
Checklist
• KB 857444: “Year-end closing procedures for
Receivables Management in Microsoft
Dynamics GP”

36. Receivables Management Year End Close
Procedures
• 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.

37. Receivables Management Year End Close
Procedures
• Affects tax
details
• Closing the tax
year deletes
the prior year
data
• BACKUP!

38. Receivables Management Year End Close
Guidelines
• 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

39. Receivables Management Year End Close
Additional Resources
• 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”

40. 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

41. Payables Management Year End Close
Results
• 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

42. 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.

43. Payables Management Year End Close
Results

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

45. Payables Management Year End Close
Procedures
• 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.

46. 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."

47. Payables Management Year End Close
Guidelines
• 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

48. 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

49. Payables Management Year End Close
Guidelines
• Change aounts
month by month
or for the entire
year.

50. 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.

51. 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

52. 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

53. 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

54. Fixed Assets Year End Close
Results

55. Fixed Assets Year End Close
Checklist
• KB 865653: “The year-end closing procedures
for the Fixed Asset Management module in
Microsoft Dynamics GP”

56. 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

57. 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

58. Fixed Assets Year End
Guidelines
• You must depreciate all assets through the last
day of the current FA year before you close the
year

59. 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.

60. 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.

61. 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

62. Analytical Accounting Year End Close
Results

63. Analytical Accounting Year End Close
Results

64. Analytical Accounting Year End Close
Checklist
• KB 960356 : “The year-end close procedures for
Analytical Accounting”

65. 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

66. 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

67. 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

68. 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

69. 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

70. 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

71. 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

72. 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.

73. 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.

74. General Ledger Year End Close
Procedures
• Adjust the budget figures for the new year, and
then print the financial statements.
• Make a backup.

75. 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

76. 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

77. General Ledger Year End Close
Guidelines

78. General Ledger Year End Close
Additional 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”

79. General Ledger Year End Close
Additional 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”

80. Thank You!
Happy
Year!
New