Presentation on theme: "2010 Dynamics SL Year End Event December 15, 2010"— Presentation transcript:
12010 Dynamics SL Year End Event December 15, 2010
2Top 5 Year End Support Questions Where do we get year end updates?Log into CustomerSourceTax updates not out yet for Payroll TablesUsually last week of December they are issued. Load them AFTER closing payroll for the year.Can’t print AP checks with a check date of 2011?Error 532 Date must be in an open 1099 calendar year when printing checks.Go to AP, Processes, Close 1099 YearCan only have two 1099 calendar years’ worth of dataCan 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.My 1099 balances are wrong, how can I fix them?Log into SL with a user that has initialize rights for vendor maintenance.Turn initialize mode on, go to AP, Vendor Maintenance, 1099 tab will now have numbers that are black and you can change them.Closed payroll and now I need to do a check for 2010, 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 W2’s are based on check dates of checks.
3Introduction to Closing Year End vs. MonthlyExcept for Tax reporting in AP an PR there technically is no differenceYear vs. PeriodIn Reality there is a differenceAccuracy of Standing AccrualsBudget FulfillmentCovenant ReportingPerformance ReportingTax implicationsEtc.However, Remember we don’t have to worry about not being able to post back or forward in all modulesWhy do we have closingsIt is used to help us measure how we (as a company) are performingIt is a Snap Shot of our financial position at one point in timeWhat are the biggest problems at closingTiming/Cut-offReconciliations
4Timing/Cut-offIt should allow for reports to be published quick enough for Management to react to the information before the next period close.Planning for Year-EndWhat can be done ahead of timeWith an integrated system like SL we recommend closing as close to Work Day 1 as possibleEasier to Coordinate consistency between modulesMinimize problems with Cash ManagerMost important, It should be consistent period after period including Year End.
5Reconciliations Reconcile the Sub-Ledgers to the General Ledger AR, AP, Inventory, Cash Manager, Payroll, etc.For Problem Sub-Ledgers consider reconciling on an interim basisMake sure the Sub-Ledger is correcti.e. that there are no problems within the Sub-LedgerMake sure there are no Unprocessed batchesDon’t delay in releasing or posting batches
6General LedgerThe GL should be the last module you close for the Period or YearEnter all Standard JE’s and adjusting JE’sGenerate Recurring JE’sEnsure all sub-modules have been reconciled to the GLAnalyze all transactions in Suspense accounts. Correct and postVerify all GL batches have been released and postedReview Batch Register in Summary FormatField = batch. Status; Operator = IN; Value = B,H,S,UVerify all Allocations have been generated and postedRun Trial BalanceAssets = LiabilitiesCurrent Year Income = Profit & Loss StatementRun Financial Statements (look at key #’s such as Revenue, GP, specific accts)
7Accounts PayableIf you are using the Inventory module and the Purchasing module then you need to coordinate AP closing with InventoryEnsure all available Supplier’s invoices have been enteredVerify recurring batches have been generated and postedVerify all batches have been released and postedReview Batch Register in Summary FormatField = batch. Status; Operator = IN; Value = B,H,S,U,K and RVerify Vendor Trial Balance agrees with Vendor Aged ReportVerify Vendor Trial Balance agrees with the General Ledger Trial Balance. If not then:Was a reconciliation completed last periodRun 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.
8Accounts Payable Other Items related to Accounts Payable Processing 1099’s1099 forms are updated based on check dates – not period-to post1099 Calendar Year Control (Allows for two active 1099 years)Date must be in an open 1099 year when printing AP ChecksYou should purge the Oldest year only after you have completed the final printing of 1099 formsYear End Updates for 2010 are available now for downloadSL 7.0 all versionsSL 6.5 sp2 & sp3No changes to the formFew updates to the 1099 Electronic file
9Accounts Payable Other Items related to Accounts Payable (Continued) Processing 1099’s (Continued)How do we know they are correctQuick & Dirty CheckCompare Payments in Vendor History Report ( ) to 1099 Preview ( )Select field = Vend1099 ; Operator is equal; Value = ‘1’If on a fiscal year, you may have to use MS QueryDetail CheckDown load KB zip file from Boyer WebsiteReport for all paid documents to 1099 Vendors regardless if a 1099 box was usedNote : Pay special attention to Prepayments and Adjusting DebitsCauses for Incorrect 1099’sVendor was not originally set up as a 1099 VendorVouchers entered to an incorrect 1099 Box
10Accounts Payable Other Items related to Accounts Payable Processing 1099’s (Continued)How do we Correct 1099’s1099 amounts can be manually corrected using Initialize Mode in the Vendor Maintenance screen.Can try running the rebuild 1099 history option in the AP Integrity checkPSTL tool to assist in rebuilding 1099 information for paid vouchers that were not originally entered as 1099 vouchers. $Filing ElectronicallyIf more than ’s you must file electronically to the IRSIf more than ’s you must file electronically to the State of MNSee Fact Sheet 2a from MN Dept of Revenue
11Accounts 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’ screenEnsure 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 ModuleVerify all Recurring Invoices have been generated and posted for the periodVerify all batches have bee released and postedBatch Register in Summary FormatField = batch. Status; Operator = IN; Value = B,H,S,UVerify Customer Trial Balance agrees with the AR Aging Report
12Accounts Receivable (Continued) Verify the Customer Trial Balance agrees to the General Ledger Trial Balance. If not then:Was a reconciliation completed last periodRun a Detail GL for the AR account(s) and look for transactions that did not originate in ARRun the AR Account Distribution Report by Transaction Type. Look for documents that were debited and credited to the AR account.
13InventoryIf 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’ screenEnsure all items that have been physically shipped are recorded as issues into Inventory and as Invoices in the AR ‘Invoice/Memo’ screenVerify all batches have been released and postedBatch Register in Summary FormatField = batch. Status; Operator = IN; Value = B,H,S,UPost all transactions to the General Ledger
14Inventory (Continued) Compare the Inventory Valuation Report to the Inventory Trial BalanceRun GL Transaction 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 BalanceRun 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
15Cash ManagerThe Cash Manager is both Date sensitive and Period Sensitive.It is date sensitive when updating the Cash ManagerIt is period sensitive when updating the General LedgerThe Reconciliation function is two foldA reconciliation between the Bank Statement and the Cash ManagerA reconciliation between the Cash Manager and the General LedgerWe recommend that you disassociate the ‘Cash Manager to the General Ledger reconciliation’ in the Bank Reconciliation screen and perform two separate reconciliationsCash Manager to the General LedgerBank Statement to the Cash Manager
16Cash Manager (Continued) Reconcile the Cash Manager to the General LedgerVerify all batches have been released and posted.This includes the batches from CA, GL, AP, AR and PRVerify all Recurring Items have been generated and postedBalance the General Ledger Balance to the Daily Cash Balance. If not then:Verify the reconciliation was completed at the end of the last periodReview the GL Transaction report in ‘Unposted’ format. Include future periodsReview 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)
17Cash Manager (Continued) Reconcile the Bank Statement to the Cash Manager. If not thenVerify the beginning balance on the Bank Statement agrees Statement Balance on the last Bank ReconciliationRecord any transaction on the Bank Statement that is not in SLRun the Bank Reconciliation report. This may list differences that might assist you in reconciling the bank statementExtract Cleared Deposits and Cleared Checks to ExcelCompare to the summary information on the Bank Statement to isolate the difference
18PayrollThe 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 2011 payroll calculation will not work until the year end close for Payroll has been completed in 2010.The preferred method for Month-End and Quarter-End Payroll closing is 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. You will either have to accrue or reverse a portion of the expenses to match the Payroll expense in the right period
19Payroll (Continued) Month-End Procedures Verify all Payroll Batches have been released and postedBatch Register in Summary FormatField = batch. Status; Operator = IN; Value = B.H,K,S,R and UPost all transactions to the General LedgerReconcile the Payroll module to the General Ledger. If not thenCompare the P&L Accounts in the Account Distribution report in summary format with the General Ledger Trial BalanceRun the GL Transaction report in Unposted format and include future periodsRun the Detail GL report and look for transactions that did not originate in PayrollVerify that last month was reconciledConsider reconciling the “Earnings Deductions’ report in Total Format to the following reports941 WorksheetUnemployment Worksheets (both Federal and State)
20Payroll (Continued) Quarter-End Procedures Same procedures as Month-End proceduresReconcile the “Earnings Deductions’ report in Total Format to the following reports941 WorksheetUnemployment Worksheets (both Federal and State)Consider testing W-2’sUse the ‘Earnings Deduction’ report in Detail Format
21Payroll (Continued) Year-End Procedures Same procedures as Month-End and Quarter-End proceduresVerify 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 OptionInstall Year-End updates.Note: this can be completed before or after you close Payroll for the yearYear End Updates for 2010 are available now forSL 7.0 all versionsSL 6.5 sp2 & sp3Load 2011 Tax update. This must be completed after you close the Payroll for the year. Tax tables will be available later this month.
22Payroll (Continued) Year-End Procedures Update deduction and earnings information for employeesSuch as new SUTA rate, new Insurance rates, etc.Note: Clear Hire Act Check Box on Employee Maintenance Screen.. Assuming it is not extended.Prepare W-2’s
23W-2 ProcessingThe W2 calculation process is used to calculate W2’s and can be run at anytime, as well as, multiple timesCan be run by pay group and by employee if necessaryCan be run for any calendar year that you are retaining detail (i.e. after Payroll has been closed for the year)After the calculation has been processed you can review by running the W2 formsCompare to ‘Earnings Deduction’ report in Detail Format Or, after calculation review in Employee W2 History screenCorrections to W2’s can be made in Employee W2 History screenMust be in Initialize modeIf corrections are made (make sure to select ‘Protect Edited W2 Information’ is checked in the W2 calculation screen. This way edited information will not changeCorrections to Employee History screenMust be in initialize mode
24W-2 Processing (Continued) Run W2’s or prepare W2’s using using W2 Electronic fileElectronic filing of W2 data is supported for federal filing onlyHowever, Minnesota accepts EFW2 fileIf more than ’s you must file electronically to the IRSIf more than ’s you must file electronically to the State of MNSee Fact Sheet 2 from MN Dept of Revenue
25W-2 Processing (Continued) Tips on W2 ProcessingSome issues require modifying maintenance screensMissing State Employer ID Deduction Maintenance(History)/W2 ControlMissing Federal Employer ID Company MaintenanceIncorrect Boxes Deduction or EarningsSome issues require corrections on Employee W2 History screenIncorrect wages reported due to incorrect setup of tax exempt deductionsAdjustments for taxable items such as taxable life insuranceUse 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 authorityQTD & 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
26Questions & Comments Questions? Is there anything you expected from the course that we did not cover?Contact information :Bud Brenneman Colleen McCoshen