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Year-End Processing in Microsoft Dynamics GP

Year-End Processing in Microsoft Dynamics GP

Closing out your year in Microsoft Dynamics GP? We recently hosted a webcast on the processes you need to follow in order to complete the year end closing processes including 1099 printing and more in Microsoft Dynamics GP. Here are the highlights and tutorials on what you need to do, but if you have any questions please contact our support team.

Moderated by Stephanie Smith, GP expert Diana Wilson shared the best practices in year-end closing, as well as answering questions from attendees. View the webcast here.

Process Overview Notes

Install the latest Year End Patch from Customersource

Read the Year End Close Knowledge Base from Customersource for all active modules, with main modules linked below. Note: If you do not have a Customersource account, please contact your partner or contact Brittenford to get set up.

Select a time when users do not need to be in GP (allot several hours for this, as all users must be out of GP while year-end close is running)

Post as many transactions as possible

Run a Full Backup prior to running close. For larger companies, it is recommended you run a backup prior to each module close as well.

Process Summary

  • Review General Ledger accounts to make sure posting type is correct (balance sheet or income statement)
  • Review general ledger setup to make sure retained earnings account is correct

Closing Process

Once all users are out of GP:

  • Run Suggested Reports (all modules)
  • Run File Maintenance (recommended): Provides good clean slate for next year.
  • Backup Database(s)
  • Run Year-End Processes (Calendar, Fiscal, or Both)
  • Run Recommended Reports again and verify against pre-close reports
  • Backup Database(s) Again

It cannot be stressed enough, do not allow users back into GP until all modules have been verified.

Order of Modules to Be Closed and Notes on Closing

  • Inventory: KB 872713
  • Receivables Management: KB 857444
  • Payables Management: KB 875169
    • Print Aged Trial Balance with Options and Vendor Period Analysis Vendor History for your records
    • Verify the open AP balance from the Aged Trial Balance Report ties to the General Ledger Trial Balance Report for the AP Account
    • Print 1099s
    • Close the Accounts Payable Module for the Year
    • If using Greenshades for 1099s, download updates before running 1099s
  • Fixed Asset Management: KB 865653
    • Run Final Month of Year Depreciation
    • Run the GL Interface (GL Posting)
    • Note: The year-to-date depreciation amounts for previous fiscal years are not kept in Fixed Asset Management. Therefore, you must print any reports that contain this information before you close the year.
    • Fixed Assets has a separate calendar, verify correct setup.
    • Select only the book(s) to be closed
    • Note: This Module is the most sensitive to year end close and the most difficult to correct, so verify carefully before proceeding with the year end close process
  • Analytical Accounting: KB 960356, KB 2910626
  • General Ledger: KB 888003
    • Verify all modules have been closed for the year
    • Verify Account setup is correct (Balance Sheet or Income Statement)
    • Verify General Ledger setup is correct
    • Print GL Detail Report, Trial Balance, and Financial Reports prior to closing and compare to reports after closing.
    • After closing for the year, run the Trial Balance Report for 12/31 and compare the report to the Trial Balance after closing. Verify year-to-date accounts closed properly into Retained Earnings and identify any discrepancies.
    • Run the Trial Balance report for January 2016. Verify the beginning balances tie to the ending balances from the 12/31/2015 Trial Balance report.

Payroll Year End Updates

If you have the payroll module through GP, complete this as a separate process before the beginning of next year, following the instructions on KB 850663.

To download payroll year-end updates for GP 2013 and 2015, please follow the links below.

Please note that as mainstream support for Microsoft Dynamics GP 2010 ended on 10/13/2015, tax and year-end updates are no longer issued. If you use GP 2010 and would like to prevent headaches in 2016, please contact us at sales@brittenford.com to learn more about preserving your support.

Changes in Payroll and 1099 Year End Updates

There are a few payroll and 1099 year-end updates to note in GP:

  • Payroll:
    • No W-2 or W03 Form Changes
    • EFW2 Changes (Electronic Filing)
    • Product Quality Fixes around Payroll Year-End
    • Affordable Care Act (ACA) Updates
  • Form 1099:
    • 1099-DIV: Form and Application Changes
    • 1099-INT: Form and Application Changes
    • 1099-MISC: Form and Application Changes
    • 1096: Form Change (Printing only available for 2013 or higher)
  • Fixed Asset Luxury Auto Depreciation Changes

Notes on Year-End Closing

  • Year-End Closing Must be completed prior to running January GL reports so that BBF and Retained Earnings are correct
  • Year-End Adjustments can be made for one year prior (adjustments will automatically adjust retained earnings and BBF)
  • Only 2 years can be open (vs. Historical) at one time
  • Closing AP before 2016 is no longer necessary (2010 or higher) as the module is now date sensitive. However, the following are based on closing of the Payables Management Module:
    • SmartList objects
    • Payables Management summary reports
    • “Accounts Since Last Close” view of Vendor Yearly Summary window
  • Do Not Post any 2016 transactions before closing 2015

Dates and Deadlines

Filing deadlines for Forms 1097, 1098, 1099, 3921, 3922, or W-2G are February 29, 2016 if on paper, or March 31, 2016 if filing electronically.

Notes on 1099s

Note: The following process will be different for Greenshades users and users of GP prior to 2013.

Screenshots and detailed explanations are available in the webcast.

  • 1099 Edit List: Go to Purchasing -> Routines -> Print 1099. Note: You will need to manually select each type of 1099
  • Verify 1099 Setup is Correct in GP: Go to Purchasing -> Setup -> Payables. Check that 1099s meet IRS Minimums.
  • Changing 1099 Amounts for Vendors: Purchasing -> Transactions -> Edit 1099 Transaction Info
  • Mass Change 1099 Vendors: Purchasing -> Utilities -> Update 1099 Information
  • Changing Vendors Not Originally Marked for 1099: Refer to KB 918536 for more information
  • Testing Print Setup: Print the 1099 Report on blank paper to determine that forms are correctly aligned, and change the Print 1099 options.

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

Please download the entire webcast for complete explanations from GP Expert Diana Wilson.

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