(703) 860-6945           Brittenford is now Wipfli! Learn More

Tips, Tricks, and Frequently Asked Questions about Closing the Books in Dynamics GP

Tips, Tricks, and Frequently Asked Questions about Closing the Books in Dynamics GP

Closing out the year in Dynamics GP requires a very specific set of behaviors to complete. Following our last blog on the closing procedures yesterday, we would today like to dig into additional tips and tricks, as well as answer frequently asked questions about completing the closing process.

Frequently Asked Questions

In their guide to year-end close, Microsoft addressed a wide range of questions about completing the process. We will address some of these below, but for more information on how to complete the close, we recommend you take a look at their blog:

Do You Have to Close the Fiscal Year before the First Day of the Next Fiscal Year?

While the routine does not have to be completed before the next year begins, Microsoft recommends you close the year out as soon as possible. In the event you have two open years at the same time, learn more in KB Article 866371.

Can You Make Adjusting Entries after Closing the Year?

In the event that you have the posting to history box checked in the GL Setup window, you can post an entry to the most recent historical year. If you post an entry to a closed year, a second entry is automatically made that updates the beginning balances for the current fiscal year.

After Performing Closing, Beginning Balances Were Brought Forward for Some Sales and Expense Accounts and Some Asset Accounts also Closed to Retained Earnings Accounts, Why?

The posting type that is specified in the Account Maintenance window for the account determines whether a balance is brought forward for the account or whether the account is closed to the retained earnings account. There are three ways to address this:

  • Restore from a backup, correct the posting type, and then run the Year End Closing routine again.
  • Take the steps prescribed in KB 864913 to make changes without restoring the backup.
  • In GP 2013 R2, users may follow the steps to Reverse Historical Year. Click Reverse Historical Year, verify the Year to Open displayed, click Process; the year will be reopened as if it was never closed. Change the posting type and run the close again.

After Trying to Run a Close Using Divisional Retained Earnings, I received the following Message: “Retained Earnings Account Not Found.” Why?

This often occurs because GP runs a validation to see if all required divisional retained earnings accounts exist under the following nnn-nnnn-nn format where the first string represents the department. In this case, if sales account 400-4100-00 exists, there must be a retained earnings account to match. Without the matching retained earnings account, GP will display the “Retained Earnings account not found” message.

KB articles 850615 and 850741 explore this topic in more detail.

During the Year-End Close, What Happens to Unit Accounts?

When completing year-end close, unit accounts are treated as balance sheet accounts, including a balance that is brought forward when the year is closed. Please read KB 857582 on how to handle this.

Is It Possible to Allocate Certain Net Profit to Earnings Accounts and Other Net Profit to Capital Accounts?

In short, no, you can not directly do this. However, you can specify a non-financial account in the Account Maintenance window. By using a number that is not in your current account numbering scheme, you can treat this account as a “suspense account” in which you can post an adjusting entry to the three capital accounts that you want to adjust.

When the year-end closing routine is finished, use the suspense account as the retained earnings account. This offsets all the manual adjustments that you made to the suspense account during the year. Make sure that the suspense account does not appear on reports.

Why is the Status of Some Financial Reports Set to Invalid?

If a report is configured to use the accelerator file, any changes that are made to accounts in any one of the following windows causes the status of the financial report printing options to change to Invalid:

  • Account Maintenance
  • Unit Account Maintenance
  • Mass Modify Chart of Accounts
  • Year-End Closing

Before you print financial statements, you must update the accelerator file. To do this, follow these steps:

  1. On the Reportsmenu, point to Financial, and then click Update Financial Accelerator.
  2. Click Update, and then click Continue.
  3. Close the Update Financial Accelerator Information window.

How Do You Use Non-Financial Accounts in Year-End Closing?

Depending on whether you have the account configured to Balance Sheet or Profit and Loss, the non-financial accounts will be closed out differently. If the non-financial account is configured to use the Balance Sheet posting type, the account balance is brought forward during the year-end closing routine. If the non-financial account is configured to use the Profit and Loss posting type, the account balance is closed to the retained earnings account during the year-end closing routine.

What Should You do When You Receive the Message, “Batches cannot be posted while the Year-End Close is in progress”?

This is an issue that requires users to close out of the transaction entry window and delete the SY00800 file if you are using a Microsoft SQL database. To do this, run the following statement on the DYNAMICS database. “delete SY00800 where BACHNUMB = ‘GL_Close’” Please read KB 856550 to understand more.

Can You Print a Corrected Trial Balance Report if the Year Has Been Closed?

Yes, you can print a corrected Trial Balance report for the year that is closed. To do this, follow these steps:

  1. On the Reportsmenu, point to Financial, click Trial Balance, and then click New.
  2. In the Optionfield, type With Adjustments.
  3. In the Includearea, click to select the Posting Accounts check box.
  4. In the Yeararea, click to select the History check box, and then select the historical year in the Year
  5. Click Destinationto specify a report destination, and then click OK.
  6. Click Print.

How Does GP Determine the Financial Statement Printed?

The category determines the type of financial statement that is printed when you use quick financial statements for the account that you are adding. The category is either the Balance Sheet category or the “Profit and Loss” category. You must format the reports to print the accounts that you want in Advanced Financial Analysis and in Microsoft FRx. The posting type is used during the year-end closing routine to determine the accounts that close to the retained earnings account and to determine the account that carries a balance forward. The posting type does not affect the financial statements.

When Trying to Complete Year-End Closing, You Receive an Error Message, “Single-Use Batch or a Quick Journal Transaction Had Not Been Posted”

If you receive this message, it happens if an unposted single-use batch or an unposted quick journal transaction exists in General Ledger. While the error does not absolutely prevent you from completing the year-end routine, you may continue if you do not want to post the single-use batch or the quick journal transaction.

Why Did the Year-End Closing Process Delete Some GL Accounts That May be Tied to Budgets?

In Microsoft Dynamics GP 2010 and Microsoft Dynamics GP 10.0, the year-end closing process will automatically delete GL accounts that are marked as inactive and have no activity in the current year. In Microsoft Dynamics GP 2013 and Microsoft Dynamics GP 2015, there is new functionality in the Year-End Closing window to Maintain Inactive Accounts. This allows you to have inactive accounts without a balance automatically deleted, or to maintain all inactive accounts, or just those used in Budgets.

If I had a failed year end close, can I use the Reverse Historical Year checkbox in the Year-End Closing window in Microsoft Dynamics GP 2013 R2 (and later versions), to try to fix it or ‘un-do’ it?

This feature was designed to reopen a GL year that was successfully closed. If you get an error message we recommend to make a screenprint of the error message and restore to a backup immediately. Open a support incident with Microsoft Dynamics Support for further assistance.

Housekeeping Tips

Before doing anything to close out the year, there are a few basics you should complete throughout the year-end close process discussed in our blog yesterday.

  • Run Backups Before and After Close: One of the most important things Microsoft notes in their blog is that you need to have a current backup. This will give you peace of mind and prevent you from losing work if an error occurs. In the event that you do see an error, take a screenshot of the error and restore your backup.
  • Log Out: Another important note is to make sure that all users log out of Dynamics GP before completing the year-end close.
  • Perform the Year-End Process at the Server
  • Leave Space: During the closing process, files will temporarily double in size. Leave room for this to happen.
  • Double Check Posting Types: It’s important to make sure that these are set up properly, as some of the most common issues occur when these are not set up.
  • Test First: In order to prevent errors, you may want to perform a test run of the close in a test company. By doing this, you will be alerted of any errors that will likely occur during the real close so that you do not need to recover data from backup. Additionally, it will let you know approximately how long the close will take to complete.
  • Let the Process Run: Don’t tinker. The process may hang up or display a not responding message. Don’t touch it. If there is an error, GP will let you know. Please note that if you use Analytical Accounting, the closing process will take longer.
  • Turning off Currency Translation before Close Could Speed up the Process: Some users elect to ‘turn off’ Currency Translation (Microsoft Dynamics GP >> Tools >> Setup >> Financial >> Multicurrency) prior to closing the year, and then set up currency translations again after the year is closed to speed up the year-end closing process.
  • Click the “Close Year” Button Only Once: If you click the button twice, GP will close two years. If this happens, you will end up with invalid data and incorrect historical year assignments that will need to be fixed. This is as important as making a backup, because if you do not have a backup, you will need to hire a consulting firm to reopen the year. We’re glad to help, but you can avoid this.

Questions? Need Assistance? Contact Us Today!

At Wipfli, we’ve been in the business of supporting Microsoft Dynamics GP for years, and have helped companies like yours to ensure a speedy, accurate, and hassle-free close. In tomorrow’s blog, we will cover additional tips and answer other commonly asked questions, but if you don’t have time to read that one and you take one thing from this blog, let it be this: Make backups. We can’t stress that enough.

If there are any close issues, please contact support@brittenford.com immediately to resolve questions or concerns.

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

GP User? Learn the Secrets to Improved Travel and Expense Management

Is your organization wasting away in manual processes for travel and expense management, spending even more time sending the data back to GP? Learn more about ExpenseConnect for Concur and GP, and just how much time it can save you.

Learn More