1. Year-End Close Procedures
Month-End and
Year-End Close Procedures
Tracey Wright
Graham O’Bray

2. Agenda Month End Procedures Year End Procedures Master Posting
Receivables procedures
Reconciling subledgers to GL
Close fiscal periods (optional)
Year End Procedures
Inventory Control
Receivables Management /Payables Management
Fixed Assets
General Ledger/ Analytical Accounting
Canadian Payroll
The order that the modules should be closed are the order that the modules are listed here in the agenda (and also listed at the top of the GL year-end KB #888003). Note that Payroll year-end procedures are independent from the other modules and is always performed at the end of the calendar year.

3. Master Posting Tools > Routines > Master Posting
View all open batches originating from any module
Post all batches for the month
Ensure all entries are posted through the GL

4. Receivables Month End Aging Paid Transaction Removal
Unlike payables, receivables is aged only when the process runs
Affects the aging buckets on the trial balance
Can be automated on the server by a system admin
Paid Transaction Removal
Moves fully applied documents to History
History documents do not show on statements
Customer Statements

5. Reconciling subledgers to the GL
Need to compare subledger reports to the GL for:
Accounts Receivable / Accounts Payable
Bank
Inventory
Accrued Purchases
Why do we do this?
Need to prove the amounts on your balance sheet!

6. Reconciling subledgers to the GL
Why would the subledgers go out of balance?
Direct entries to the control accounts
Unposted GL entries that originated in a subledger
Deleting/voiding GL entries that were posted in the subledger
Manually closing purchase orders

7. Reconciling Receivables to GL
Do I balance today?
Receivables Summary Inquiry
GL Summary Inquiry

8. Reconciling Receivables to GL
Did I balance at month end?
Receivables Historical Aged Trial Balance report
GL Summary Inquiry / GL Trial Balance Summary report

9. Reconciling Receivables to GL

10. Reconciling Payables to GL
Same as receivables 
Compare Payables Summary Inquiry to GL Summary Inquiry
Compare Payables Historical Aged Trial Balance to GL Trial Balance

11. Reconciling Bank to the GL
Compare the adjusted book balance on the bank reconciliation to the GL
Bank reconciliation posting journal
GL Summary Inquiry or GL Trial Balance report
If you use Multicurrency, be sure to compare the Functional (Canadian) currency.

12. Reconciling Bank to GL

13. Reconciling Accrued Purchases to GL
Point in time (current) reconciliation
Compare:
Received Not Invoiced report
GL Summary Inquiry or GL Trial Balance report

14. Reconcile Inventory to GL
Compare:
Stock Status (print right at month end) or the Historical Inventory Trial Balance
The Historical Stock Status is not intended to match the GL
GL Summary Inquiry or GL Trial Balance for the Inventory account

15. Close Fiscal Periods Tools > Setup > Company > Fiscal Periods
Soft close to prevent users from posting to that period
Can be reopened at any time
Can choose which modules to close

16. Year End Closing Close in this order: Inventory Control
Receivables Management /Payables Management
Fixed Assets
General Ledger/ Analytical Accounting

17. Inventory Control Year End
When should the close be done?
The Inventory module should be closed at the end of your Fiscal year, before any new transactions that would affect inventory quantities are posted

18. Inventory Year End
What does the year end close process do and/or affect?
Transfers all summarized current-year Quantity, Cost and Sales amounts to last-year  
Updates each Item’s Beginning Quantity from the Quantity on Hand at each site (turnover report)
Zeros the Quantity Sold field in the Item Quantities Maintenance (Cards - Inventory – Quantities/Sites) for each Site
Gives you the option to: Remove Discontinued Items, Remove Sold Receipts, Remove Sold Lot Attributes, and Update Item’s Standard Cost

19. Inventory Year End What steps should I take to close the year?
Enter and post all Purchase Order Processing, Invoicing/Sales Order Processing, and Inventory transactions for the current year
Reconcile SOP, POP and then Inventory
Tools > Utilities > Sales > Reconcile – Remove Sales Documents
Tools > Utilities > Purchasing > Reconcile Purchasing Documents
Tools > Utilities > Inventory > Reconcile
Reconcile must be done when no one in Sales, Purchasing or Inventory windows
Inventory Yearend close

20. Receivables Management Year End
What does the year end close process affect?
Customer Finance Charge Summary
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)
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)
Smartlist YTD and LYR fields

21. Receivables Year End

22. Receivables Management Year End
What steps should I take to close the year?
Post all transactions for the current year
Make sure all transactions for the new year are saved, not posted
Tools > Routines > Sales > Year-End Close
You will notice that we have two KB's around closing Receivables Management(KB857444) and Payables Management (KB875169) - both instructions say to 'Close the tax year by going to MDGP | Routines | Company | Tax Year-End Close. You will only have to do that once, typically after both RM/PM are closed out. The reason that we list it in both sections is because some users may not use both the RM and PM modules.

23. Payables Management Year End
What does the Year End Close Process do?
In the Vendor Yearly Summary Window:
Calendar close- transfers the 1099 Amounts from Year to Date Column to Last Year column ONLY in the Amounts Since Last Close view
Fiscal close – transfers all other amounts from the Year to Date column to the Last Year column ONLY in the Amounts Since Last Close view
This window can be viewed as Fiscal or Calendar Year
Smartlist YTD and LYR fields .
NOTE: Remember that the Year End Close only affects the Vendor Yearly Summary window for the Amount Since Last Closed View which will affect other areas like SmartList YTD, LYR, and LTD amounts and also some summary reports. It will not affect the printing of your 1099s. If these amounts are incorrect because the year end close was not done at the correct time and you would like to fix them support does have scripts that can be ran to correct the Vendor Yearly Summary window.

24. Payables Management Year End
What steps should I take to close the year?
Post all transactions for the current year
Make sure transactions for the new year are saved, not posted
Tools > Routines >Purchasing > Year-End Close

25. Fixed Assets Year End When should the Year End Close be done?
Fixed Assets Year End Close should be processed after Payables Management is closed, and before closing the General Ledger
Each book can be closed separately, but ALL books must be closed before you can do any processing in Fixed Assets for the new year

26. Fixed Assets Year End What does the Year End Close process do?
In the 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
In the 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

27. Fixed Assets Year End Close
What does the Year End Close process do?
(continued)
In the Book Setup Window (Microsoft Dynamics GP >> Tools >> Setup >> Fixed Assets >> Book):
The Current Fiscal Year is increased for each closed book
Dynamics GP 2015 has Fixed Assets Year End report (Status report of all assets affected by the close)

28. Fixed Assets Year End Close
What steps should I take to close the year?
You must depreciate all assets through the last day of the current FA year before you close the year
Print all the reports that you will need for the year you are closing (Especially important for GP 10.0 and GP 2010)
Take a backup
Tools > Routines > Fixed Assets > Year-End

29. Analytical Accounting Year End Close
When should the year-end close be done?
There is no separate year-end close process for AA. It automatically closes along with the GL year-end close, so any steps to check AA data should be done prior to closing the GL year.
If your last year end close was version 10 or prior, please contact Prophet to run scripts prior to the year end close.

30. Analytical Accounting Year End Close
What does the GL Year End Process do in AA?
Automatically moves open year AA data to historical tables (AAG3000x  AAG4000x)
Update AA tables with Balance Brought Forward (BBF) entry to match BBF in GL
Any dimensions marked to be included in Year End close will be consolidated and tied to BBF entry

31. Analytical Accounting Year End
What are some important points to remember?
AA automatically closes with General Ledger
Run through scripts in KB if you suspect any data inconsistencies between AA and GL
Make a backup
Make sure AA is installed and enabled on workstation where GL is being closed!

32. General Ledger Year End Close
When should the Year End Close be done?
The General Ledger Year End Close should be done after you have completed the Year End close process for all other modules
Other modules should be closed in the following order:
Inventory
Receivables
Payables
Fixed Assets

33. General Ledger Year End Close
What does the Year End Close process do?
The year end close routine moves all open year transactions from the GL20000 table to the GL table
Creates balance brought forward (BBF) journal entries are created in the GL20000
Removes inactive GL accounts without a balance/history.
GP 2013/GP 2015 will also clear out Unit Accounts if marked
The balances for all Balance Sheet accounts are rolled forward to the new year
The beginning balance in the new year for BS accounts will be the same as the ending balance from the prior year you are closing

34. General Ledger Year End Close
What does the Year End Close process do? (Cont.)
The Profit and Loss (P&L) accounts are rolled into Retained earnings account(s). P&L accounts have a zero balance at the beginning of the new year
The Fiscal Period tables are updated to mark the year just closed as a historical year
Automatically closes Analytical Accounting
Year-end Close Report prints (cannot reprint)

35. General Ledger Year End Close
What steps should I take to close the year?
Make a backup!
Check hard drive space on server. GL20000 table will double in size during year end close.
Check posting type on GL accounts in Smartlist
In smartlist go to Financial > Accounts
Tools > Routines > Financial > Year-End Close
Let run to completion, even if it appears to have stopped
Take backup after year end close and keep in permanent records

36. General Ledger Year End Close
What are some important points to remember?
Make a backup! Don’t bypass errors!
If any errors or issues – RESTORE TO BACKUP
Have all other users out of Dynamics GP when you perform the year end close
Make sure that you have enough free space on the server to allow for the GL20000 table to double in size
The year end close routine does appear to hang at 50%, but it is still processing, so let it run
Print year end report to file and retain in permanent records

37. General Ledger Year End Close
What are some important points to remember? (Cont.)
Microsoft Dynamics GP 2013:
Maintain inactive accounts in YEC window
Progress bar in YEC window
Option to clear balance per unit account
Microsoft Dynamics GP 2013 R2:
Checkbox to “Reverse Historical Year” in YEC window so you can un-do a year-end close
Quality issue Divisional Retained Earnings stays unmarked – Fixed in GP 2013

38. And you are done!

39. Canadian Payroll Year End
Happens at the end of the calendar year. No closing needed at fiscal year if different.
Canadian Payroll update must be installed prior to running payroll in the new year
All prior service packs, hotfixes, compliance, and year end updates are included
The update must be installed at all servers and workstations that have a Microsoft Dynamics GP installation otherwise a version error will occur

40. Canadian Payroll Year End
Release Dates
2014 Year End Update & 2015 Tax Update
Target Release 12/19
Follow year end close steps in Canadian Payroll Update manual or in KB
Run year end close routines after the last 2014 payroll and before the first 2015 payroll
Take a backup
Transfer all payroll amounts to last year
Update TD1 amounts
Print T4s
Canadian Payroll Year End and Tax Updates for Microsoft Dynamics GP 2013
Canadian Payroll Year End and Tax Updates for Microsoft Dynamics GP 2010

41. Questions Slide deck will be available at www.prophet.ca
Password UserGroup2014
Resource handout for year end close referencing the detailed TK articles from Microsoft available