2018 Year End Best Practices Elaine Foley

ELF EMPLOYED But first, a joke What is the employment tax status of Santa’s helpers? ELF EMPLOYED

Starting the YE Close Process Best resource: Knowledge Base Article: 888003 Everyone out Take Company Offline in GP2013 R2 or higher Backups You Your IT Team Your GP Partner https://support.microsoft.com/en-us/help/888003/year-end-closing-procedures-for-general-ledger-in-microsoft-dynamics-g

What Should I Close First? SOP POP Inventory Receivables Payables Fixed Assets General Ledger Payroll Agenda slide Analytical Accounting

Sales Order Processing

What Should I Keep in Mind? No official close process Good time to clean up records Run “Reconcile – Remove Sales Documents” Post all invoices for the period before closing

Purchase Order Processing

What Should I Keep in Mind? No official close process Good time to clean up records Run “Reconcile Purchasing Documents” Remove Completed Purchase Orders

Inventory

What Should I Keep in Mind? Close at the end of your Fiscal Year before you post any transactions in the new year that would affect Inventory Run Reconcile No YE Closing report Knowledge Base Article: 872713 Inventory KB: https://support.microsoft.com/en-us/kb/872713 Open article and show Detailed steps vs. Summary steps

What Happens When I Close the Year for Inventory? 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 Gives you the option to: Remove Discontinued Items, Remove Sold Receipts, Remove Sold Lot Attributes, and Update Item’s Standard Cost

Receivables

What Should I Keep in Mind? Close on time! Numerous YTD accumulators are cleared Post all invoices for the year before closing Close before any invoices are posted in the new year Knowledge Base Article: 857444 RM KB: https://support.microsoft.com/en-us/kb/857444

Payables

What should I keep in mind? Close on time! Numerous YTD accumulators are cleared Post all transactions for the year before closing Close before any invoices/checks are posted in the new year 1099s can be printed at any time Knowledge Base Article: 875169 PM KB: https://support.microsoft.com/en-us/kb/875169

Fixed Asset Management

Fixed Assets Refer to The Year-End Closing Procedures for the Fixed Asset Management Module in Microsoft Dynamics GP Knowledge Base Article: 865653 FAM KB: https://support.microsoft.com/en-us/kb/865653

What Happens When I Close the Year for Fixed Assets? In the Asset General Information window: 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: The YTD Depreciation Amount is cleared. The Cost Basis field is copied to the Begin Year Cost field. The LTD Depreciation field is copied to the Begin Reserve field. The Salvage Value field is copied to the Begin Salvage field. In the Book Setup window: The Current Fiscal Year field is increased by one. YE Closing Report for GP2015 or higher

General Ledger

What Happens When I Close the Year for the General Ledger? In addition to transferring the data from the current year table to the history table, the YE close does the following: Reconciles and summarizes the GL balances. Can remove accounts that are marked as inactive if the accounts match the criteria for deleting a posting account. Moves all P&L account balances to the R/E account. Summarizes B/S accounts and brings the balances forward as the beginning balances of the account in the new fiscal year. Prints the Year-End Closing report BBF automatically done for AA: 960356 AA KB: https://support.microsoft.com/en-us/kb/960356

Odds & Ends After the GL Close Clearing BBF in Unit Accounts Knowledge Base Article: 857582 No longer an issue in GP2013 or higher Fixing accounts with wrong Posting Type at YE Knowledge Base Article: 864913 Or Reverse Historical Year in GP2013 R2 or higher Posting to historical year Unit Accounts KB: https://support.microsoft.com/en-us/kb/857582 Wrong Posting Types KB: https://support.microsoft.com/en-us/kb/864913

Payroll

Payroll Year End Close When Should I Do the Payroll YE Close? After all current year pay runs are complete Before processing pay runs in the new year After making a backup What Does the Payroll YE Close Do? Creates ‘Year End Wage’ file containing annual wage information used to generate W2’s, W3’s, 1099's, 1094/1095’s and Magnetic Media for the year being closed Knowledge Base Article: 850663 AA KB: https://support.microsoft.com/en-us/kb/960356 Acknowledge that not many people use Payroll

Payroll Overview – Before Processing a Pay Run in 2019: Required: Year End update applied All 2018 pay runs completed Year End Wage File created Backup of company database made Payroll Tax update for 2019 installed Optional: Print W-2s Create W-2 Electronic File

2018 Year End Update* Supported Versions GP2015 GP2016 GP2018 Build Number 14.00.1159 16.00.0741 18.00.0672 Estimated Release Date Available Now! *Need to install prior to creating the YE wage file Can install the 2018 US YE Update even if your 2018 payrolls are not complete IMPORTANT: Create the YE Wage file on 2018 tax tables – NOT 2019 The 2018 U.S. Payroll Year-End Update is currently targeted to release in mid November 2018.  

2018 Year End Update Continued Will only be available for GP2015, GP2016 & GP2018 (for R2) customers NOT available for GP2010 or GP2013 All inclusive of prior updates Will bump you up to R2 Modules with Changes: Payroll Payables Changes to 1099 – DIV and 1096 forms Link for 2018 payroll update : https://docs.microsoft.com/en-us/dynamics-gp/payroll/us-year-end 2018 R2 was released in October Technically only run the update for clients using payroll on 2015 or later Reminder that this pertains to everyone!!

2018 YE Update Changes Specific to Payroll No W-2, W-3, or W-4 Form changes Product Quality Fixes around Payroll Year-End Affordable Care Act Updates – Form and Code changes Link for 2018 payroll update : https://docs.microsoft.com/en-us/dynamics-gp/payroll/us-year-end

2019 –Tax Updates on the Horizon 2019 Tax Update – Round 1 Targeted Release = Mid-December 2018 Tax Table Update Only Do Not Install until All 2018 Payrolls Are Complete 2019 Tax Update – Round 2 Targeted Release = Mid-January 2019 Specific to payroll

Summary of Year End Closing Procedures Close Inventory Close Receivables Close Payables Close Fixed Assets Review Analytical Accounting Close GL Note: Payroll has a separate and unrelated year end close to the other modules Please note that the following modules do not have a year-end closing routine: Sales Order Processing Purchase Order Processing Bank Reconciliation

Where can I find additional Information? Sikich Article Knowledge Base Article: 888003 Microsoft Dynamics GP - 2018 Year-End Closing Blog https://www.sikich.com/insight/microsoft-dynamics-gp-year-end-close-dont-sweat-it/

GP 2013 GP 2018 R2 Mainstream support ended on 4/10/2018 Payroll tax and year-end updates will no longer be released GP 2018 R2 Released October 1st Year-end update is included

Questions?