1. Year End Process Breakdown
Presented by: Mt Pleasant Waterworks - Kelly Hobart

2. YEAR END Dynamics Great Plains
What actually occurs during the year end process???
You know you want to know…

3. Every year… Everyone puts out ‘How to complete the year end’
But what if we already know that and wanted to know more???

4. Well, here’s the more…

5. Breakdown (and a few must haves)
Plan for a time when ALL users are out of the system
BACKUP BACKUP BACKUP (in between each module)
- Sounds like overkill I know, BUT you will never be sorry when you actually need it!
When was the last time you performed check links???
There is a best practices order to follow! (we will cover that)
Some modules do not have a year-end routine (we will cover that)

6. Let’s GO…

7. Preferred order of closing modules
Step 1 – Backup
Step 2 – Close Inventory Management
Step 3 – Backup
Step 4 – Close Receivables Management
Step 5 – Backup
Step 6 – Close Payables Management
Step 7 – Backup
Step 8 – Close Fixed Assets
Step 9 – Review Analytical Accounting Settings (if Used)
Step 10 – Close General Ledger
Step 11 – Backup
Step 12 – Let the users back in to GP
NOTE: Payroll year end close is separate and unrelated to other modules and if using payroll must be done after final year payroll and before next payroll processing…
Not written in stone
GL is always last

8. Why so many backups??? Accidentally chose wrong options…
Closed out of order…
Missed a step in the process…
Module did not close properly…
So many reasons to just BACKUP

9. So Let’s talk about the process step by step

10. FIRST Install Year End Update Perform Check Links Create a pre-close backup
Tax/Payroll update is done after final payroll of the year and before new payroll of the year….

11. The following modules do not have a year-end closing routine:
Sales Order Processing
Purchase Order Processing
Bank Reconciliation
Multicurrency
Human Resources
Project Accounting
Service Call Management
Contract Administration
Preventive Maintenance
Just a note:

12. Closing Inventory

13. Inventory When: End of fiscal year What does it actually do:
Transfers all summarized current-year quantities, costs, and sales amounts to last-year, for the items that you are maintaining 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 window (Cards > Inventory > Quantities/Sites) for each site.
Gives you options to:
Remove discontinued items
Remove sold purchase receipts
Remove sold lot attributes
Update items standard cost
There is not a calendar year end for Inventory Module – should always be done at end of fiscal year
Complete a physical inventory count and post any adjustments prior to close

14. Inventory Prep Work: Post all transactions for the year
Reconcile inventory quantities
Complete physical inventory and post any adjustments
Print additional reports
Make a backup
Need more information:
MSDYNGP Inventory Close Procedures
Transaction posting to include: all Invoicing transactions, sales order processing transactions, and inventory transactions for the current year. Necessary so historical information is accurate for the year you are closing, and year to date amounts are accurately stated for the new year.
Do not post any batches for the new year until you have completed the close.
Reconcile Inventory – Tools > GP > Utilities > Inventory > Reconcile
This will find any differences and the quantities will be adjusted. If adjustments are made they will be reflected on the reconcile report.
Suggested reports: Stock status report; Purchase Receipts Report; Turnover Report; Transaction History Report; Serial Number List; Lot Number List
Access here: Inventory > Reports
BACKUP (suggested backup name: PreInvCloseFY2019Fabrikam / PostInvCloseFY2019Fabrikam)

15. Inventory Year End Closing Tips:
The year-end close must be done before any transactions for the new year have been posted.
If you are using SOP and or POP, reconcile these modules in addition to the Inventory Module PRIOR to closing. Use this order:
SOP
POP
Inventory
You have the option of marking Discontinued Items, Sold Receipts, or Sold Lot Attributes. If marked, all items, sold receipts or sold lot attributes that have a zero balance will be removed during the year-end closing process.
If you mark Update Item’s Standard Cost, the standard cost for any items that have been assigned the FIFO Periodic or LIFO Periodic valuation method will be adjusted automatically to reflect each item’s current cost, which is the amount you most recently paid for the item.
There is no Year-End Closing report for Inventory.

16. Inventory Related KnowledgeBase articles for reference KB 872713 :
“Year-End Closing procedures in Inventory Control in Microsoft Dynamics GP”
KB :
“Information about the order in which the reconcile procedures should be run in Microsoft Dynamics GP”
KB :
“Inventory Accidentally Closed Twice”
KB :
“Inventory year end close does not remove discontinued items”

17. Closing Receivables

18. Receivables
When:
Calendar Year – complete at end of calendar year before posting new transactions
Fiscal Year – complete at end of fiscal year before posting new transactions
What does it actually do:
The Calendar year end close clears the Calendar Year- to-Date Finance Charges and moves them to the Last Year Calendar field in the Customer Finance Charge Summary window found under (Cards >> Sales >> Summary >> Finance Charges).
The Fiscal Year end close transfers all amounts other than the Calendar Year-to-Date Finance Charges to the Last Year column in the Customer Summary window (Cards >> Sales >> Summary).
The following items are updated based on the closing of Receivables Management:
The SmartList objects
The Receivables Management summary reports
The Amounts Since Last Close view in the Customer Summary window
Overview:
Receivables Management is not completely date sensitive. It would still be the best option to process your year-end closing routine at the actual year-end.
If you do not close the year in Receivables Management before you post transaction to the next year, the Customer Summary and the Customer Yearly Summary Inquiry windows will display incorrect information

19. MSDYNGP Receivables Close Procedures
Prep Work:
Post all the sales and receivables transactions for the year.
Make a pre-year-end closing backup.
Close the year.
Close the fiscal periods. (This step is optional.)
Close the tax year.
Make a post-year-end closing backup.
MORE INFORMATION :
MSDYNGP Receivables Close Procedures

20. Receivables Receivables Year End Closing Tips
Receivables Management is not completely date sensitive. It would still be the best option to process your year-end closing routine at the actual year- end.
If you do not close the year in Receivables Management before you post transaction to the next year, the Customer Summary and the Customer Yearly Summary Inquiry windows will display incorrect information.
The calendar and fiscal year-end close must be performed on the appropriate date before any transactions are posted for the new year if you use SmartList or Customer Summary reports.
Backup, Backup, Backup

21. Receivables Related KnowledgeBase articles for reference: KB 857444 :
“Year-end closing procedures for Receivables Management in Microsoft Dynamics GP”
KB :
“Information about performing the year-end closing procedure in Receivables Management in Microsoft Dynamics GP after December 31”

22. Closing Payables

23. Payables
When:
Calendar – Run at end of calendar year prior to posting new transactions
Fiscal – Run at end of fiscal year prior to posting new transactions
What does it actually do:
In the Vendor Yearly Summary Window:
Calendar close- transfers the 1099 Amounts from Year to Date Column to Last Year column in the Amounts Since Last Close view
Fiscal close – transfers all other amounts from the Year to Date column to the Last Year column in the Amounts Since Last Close view
If the Year to Date or Last Year amounts are incorrect in the Amounts Since Last Close, please contact support for scripts that can be run to correct this.
These amounts affect SmartList columns that contain this information as well
The Vendor Summary Report is also affected by these fields

24. MSDYNGP Payables Close Procedures
Prep Work:
Post all transactions for the calendar year
Print a Historical Aged Trial Balance with Options Report
Print the Vendor Period Analysis Report (if you are closing Fiscal Year)
Install the Payroll Year-End Update (Optional)
Make a backup and name it “Pre-1099 Edits”
Print and verify the 1099 statements using the Print 1099 window and the Edit List
Make a backup and name it “Pre Year-End”
Close the calendar year or Fiscal Year using the Payables Year-End Closing window
Close the fiscal periods for the Payables Management module (optional)
Close the tax periods for the year (optional)
Make a final backup and name it “Post Year-End”
MORE INFORMATION:
MSDYNGP Payables Close Procedures

25. Payables Year End Closing Tips
All transactions for the calendar year should be posted and the 1099 forms should be printed before closing the calendar year.
When you print the 1099s, the information is pulled from the period information.
Payables Management is not fully date sensitive. It is recommended that you process your year-end closing routines at the actual year- end
Vendors should be marked as 1099-able at the time transactions are posted/paid for 1099 information to auto-populate
Use this KnowledgeBase to correct this. You can post a transaction to a prior or subsequent year and it will not affect your current year’s 1099 information or Vendor Financial Summary reports.

26. Payables notes:
The 1099 information pulls from the PM Vendor Master Period Summary table (PM00202). If a Vendor is not mark as a vendor at the time a transaction is paid you can use the 1099 Details window to update this information (Purchasing>Cards>1099 Details)
When posting transactions, the system will automatically post to the correct fiscal and calendar years according to the dates of the transactions.
Therefore, you do not have to run the calendar year-end and fiscal year-end on the last day of the calendar or fiscal year, unless you use SmartList or Vendor Summary Reports.
SmartList and Vendor Summary Reports pull data from the Amounts Since Last Close view as it appears in Purchasing>Cards>Summary.
The Amounts Since Last Close is the total of the amount since the calendar and fiscal year was last closed.
To make sure these reports display the correct amounts, you must close the calendar year and fiscal year before posting transactions to the new year.
The Calendar Year Summary view and the Fiscal Year Summary View (Purchasing>Cards> Summary) will display the correct amounts for the year regardless of whether the year has been closed or not.
Close your tax year as well – this is recommended in both payables and receivables, but only needs to be done once.

27. Closing Fixed Assets

28. Fixed Assets
When: After Payables Management is closed and prior to General Ledger
What does it actually 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
In the Book Setup Window:
The Current Fiscal Year is incremented to the next year

29. MSDYNGP FA Close Procedures
Fixed Assets
Prep Work:
Perform all the Year-End Closing Procedures for Payables Management
Enter all the fixed asset transactions for the current fiscal year
Depreciate all assets through the last day of the current fiscal year
Perform the GL Posting process (*Optional)
Run any year-end reports that you want to keep with your financial records
Guarantee that the Fixed Assets calendar is built correctly (*Optional)
Verify that the quarters are set up correctly for all fiscal years
Create a backup
Perform the Fixed Assets Year-End Closing Routine
MORE INFORMATION:
MSDYNGP FA Close Procedures

30. FA Year End Closing Tips
Fixed Assets
FA Year End Closing Tips
You Must Depreciate ALL Assets before running the close process EXTREMELY IMPORTANT
You must close every one of your FA Books
If you accidentally close the GL First it is Okay to go back and close Fixed Assets and post to your historical year (if posting to historical years is allowed in your GL setup)
Double and triple check your Fixed Assets Calendar to reduce stress! If even one day remains in the FA Calendar for the year, then the next years first depreciation will be overstated by an entire year
NOTE: the last day of the FA year can be confirmed by going to Financial>Setup>Fixed Assets>Calendar

31. Fixed Assets FA Close Tips
Reminder - DO NOT FLIP the 'Current Fiscal Year' in the Book Setup window:
Please DO NOT manually edit the year in the Book Setup window so you can run depreciation for the next year, and then 'flip it back' and proceed to close the current year.
If you do this, the year-end process will set the YTD Depreciation field to zero and then at the end of the next year, the GP code will look to this YTD field to see if enough depreciation has been taken for the year and not see the depreciation you had already done in the new year. This will cause your assets to over-depreciate at the end of the next year to try make up for the missing amounts in the YTD field (this manifests as doubled/tripled depreciation amounts in the last period of the year). For this reason, the Current Fiscal Year field in the Book Setup window has been locked down in Microsoft Dynamics GP 2013 and later versions.

32. Analytical Accounting Close

33. Analytical Accounting
When:
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.
You should, however always VERIFY AA data is accurate prior to closing the GL
What does it actually do:
Moves AA data from open tables (AAG30000-AAG30003) to the history tables (AAG40000-AAG40003)
Creates Balance Brought Forward (BBF) entries in the AAG30000 series tables
Consolidates balances and ties AA codes to the BBF entries for the AA dimensions that were marked to be included in the year-end close

34. Analytical Accounting
Prep Work:
Determine if Financial Reports Use AA
Verify AA Data for Overlapping Years (Open Below Link for Scripts)
Verify the Years Between Open/Historical Tables Match Between AA/GL (Open Below Link for Scripts)
Check AA Tables for Overlapping Header IDs (Open Below Link for Scripts)
Update AACOPYSTATUS Values (Open Below Link for Scripts)
Review Setup for Dimensions to be Included In Year End
(Open Below Link for exact steps)
Verify AA Account Master (Open Below Link for Scripts)
Run Test Close
Check If “Unit Accounts” Cleared (GP 2013 & GP 2015 Only) (Open Below Link for Scripts)
Verify Balance Sheet Reports
MORE INFORMATION:
MSDYNGP AA Close Procedures

35. Analytical Accounting
Key Points to Remember:
If your Financial reports need to pull data from AA tables, (such as Management Reporter Data Mart),  be sure to give yourself plenty of time to go through all the information in KB Article  before you close the General Ledger year.Verify AA Data for Overlapping Years (Open Below Link for Scripts)
If the AA data does not match General Ledger data, and financial reports are pulled from AA tables: This could skew your Financial reports (when AA tables are not consistent with General Ledger) and you won't balance to the General Ledger Trial Balance reports.   Missing or duplicated data in the AA tables can skew the beginning balance entries created in the AA tables.  The first step is to determine if your Financial reports use the AA tables or not.   If you do use AA tables or Management Reporter, it is highly recommended to run through KB  to help look for mismatched data between AA and General Ledger that should be corrected before closing the General Ledger year.  
 What steps should I take to have AA included in the General Ledger Year-end close and BBF entries created in AA?
In order to have AA codes tied to your beginning balances created by the General Ledger year-end close, you must first verify that the following options are selected:
1. In the Analytical Accounting Options window (Microsoft Dynamics GP >> Tools >> Setup >> Company >> Analytical Accounting >> Options), mark the checkbox for ‘Include dimensions in the year end close’ and click OK.
2. In the Transaction Dimension Maintenance window (Cards >> Financial >> Analytical Accounting >> Transaction Dimension), select the AA dimension code you want a balance carried forward for, and mark the checkbox for ‘Consolidate balances during Year End close’ and click Save.  Do this for each Transaction Dimension you wish to have linked to the beginning balance entries create by the General Ledger year-end close process.
With the release of Microsoft Dynamics GP 2015, the user can determine the data that is available to the Microsoft Dynamics Management Reporter Data Mart to help improve the performance and give the user control over the data selected.  Note that the Data Mart CU10 and up does have the option to report with or without AA data. 
•Make sure the General Ledger year-end close is performed at a workstation that has AA installed and activated, and that users know not to disable AA if they receive any messages.  Restore to the backup immediately, and make a screen print of the AA error message if assistance is needed with the General Ledger year-end close process.    

36. Analytical Accounting
Analytical Accounting Tips
This Process is unnecessary unless you have AA installed and functioning
AA automatically closes with General Ledger
Run through scripts in KB
Management Reporter (Data Mart) reads from AA tables
Make sure AA is installed and enabled on the workstation where GL is being closed!
Make a backup

37. Closing General Ledger

38. General Ledger
When:
Should be done after the year end close for ALL other modules
What does it actually do:
The year-end close routine moves all open year transactions from the GL20000 table to the GL30000 table
Creates balance brought forward (BBF) journal entries are created in the GL20000
Removes inactive GL accounts without a balance/history.
GP 2013 R2 and up will also clear out Unit Accounts if marked
The Profit and Loss (P&L) accounts are rolled into Retained earnings account(s) if you close to one Retained Earnings account, or with the amount from the P&L accounts in that division if you close to divisional Retained Earnings
P&L accounts have a zero balance at the beginning of the new year
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
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)

39. MSDYNGP GL Close Procedures
General Ledger
Prep Work:
Complete posting and closing procedures for other modules
Post final adjusting entries in General Ledger
Print Account List to verify the Posting Type of each account
Close the last period of the fiscal year (optional)
Perform File Maintenance on the Financial Series group of modules (*Optional)
Verify General Ledger settings
Make a backup
Print a final Detailed Trial Balance Report
Print final year-end financial statements
Set up a new fiscal year
Have all users EXIT GP
Close the fiscal year (have someone do it directly on the server)
Close all fiscal periods for all series (optional)
Adjust budget figures for the new year and print financial statements
MORE INFORMATION:
MSDYNGP GL Close Procedures

40. General Ledger Year End Closing Tips
ALWAYS have a current backup before you close the year!
If you receive any errors during the year-end close process, take a screenshot of the error message, and restore to a backup immediately.
Follow ALL the steps in KB
Have all users out of Dynamics GP when you perform the year-end close process.
Perform the year-end close process at the server.
Make sure there is enough room for the files to double in size at one point during the year-end close process.
The year-end close routine does appear to hang at 50%, but it is still processing, so let it run to completion
Understand your Posting Types and What they do BEFORE you run Year End
Use a SmartList to Help You
It is always recommended to perform the year end in a test company first
Understand Closing to Divisional Retained Earnings
If you use Analytical Accounting and/or Currency Translation, it will take longer to complete – be patient

41. General Ledger Year End Closing Tips
(continued)
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.
MR Legacy Users: See KB for detailed currency translation information (specifically refer to the section pertaining to 'entering translated beginning balances')
MR Data Mart Users: See KB for detailed currency translation information
If you run into issues or have any question whatsoever, get help!
The BBF JE’s are dated in Period 0 of the following year – This year it will be Period 0, 2018
Though you cannot reprint the YE Close Report you CAN use SmartList to compile a report on Period 0 of 2018 which will give you similar data or re-run the JE that was created at the Year End

42. Related KnowledgeBase articles for reference:
General Ledger
Related KnowledgeBase articles for reference:
KB : “Changing the posting type on an account after you close the year”
KB : “Query to clear beginning balances for unit accounts” (new options in GP 2013)
KB : “How to set up an adjusting period”
KB : “How to use divisional retained earnings accounts”
KB : “Retained Earnings account not found”
KB : “General Ledger year end close still in process and batches cannot be posted”
KB : Inactive GL Accounts deleted during YE Close process for GL in Dynamics GP”

43. US Payroll Year End

44. PAYROLL
When: After ALL current year pay runs are complete After making a backup Before processing pay runs in the new year What does it actually do: Creates the ‘Year End Wage’ file which contains annual wage information used to generate W2’s, W3’s, 1099’s, EFW2’s (aka Magnetic Media), 1095-C’s and 1094-C’s for the year being closed.
Other modules should be closed in the following order:
Inventory
Receivables
Payables
Fixed Assets

45. Payroll Year End Close Prep Work:
Verify that you have installed the latest 2018 payroll tax update
Complete all pay runs for the current year. 
Complete all month-end, period-end, or quarter-end procedures for the current year. 
Make a backup of the original file.
Install the Year-End Update if it has not already been installed
Create the Year-End Wage file. 
Make a backup of the new file. 
Verify W-2 and 1099-R statement information. 

46. MSDYNGP Payroll Close Procedures
Payroll Year End Close
Additional Prep Work:
(Optional) Print the W-2 statements and the W-3 Transmittal form. 
(Optional) Print the 1099-R forms and the 1096 Transmittal form. 
(Optional) Create the W-2 Electronic file. 
(Optional) Archive inactive employee Human Resources information. 
Set up fiscal periods for 2018 (if they haven't been set up yet). 
(Optional) Close fiscal periods for the payroll series for 2018. 
Install the payroll tax update (2019 Round 1 Tax Update) for 2019.
MORE INFORMATION:
MSDYNGP Payroll Close Procedures

47. Payroll Notes: Year End Wage File Held in UPR10100-UPR10107 tables
Year End Wage Report
Edit & Print W-2s
Create W-2 Electronic File (W200005, W200006)
Prior to processing pay runs in New Year
Install Payroll Tax Update Round 1
Microsoft Dynamics GP >> Maintenance >>
U.S. Payroll Updates >> Check for Payroll Tax Updates
Downloads & Updates >> Tax Updates (manual)

48. Payroll Year End Close US Payroll Tips:
It is OKAY to install the 2019 YE Update even though 2018 payrolls are not completely processed.
This update is ALL INCLUSIVE of prior updates
The 2019 Year-End Update and 2020 Tax Updates (tax table updates) will not be available for Microsoft Dynamics GP 2013 and prior versions.
Additionally, mainstream support for Microsoft Dynamics GP 2015 will be ending – this will be the last year end update
With the release of Microsoft Dynamics GP 2016 R2, you have the ability print W-2's with lines on blank paper.
The 1-Wide Forms with Box option
To check your tax table update date, click on Microsoft Dynamics GP, point to Tools, point to Setup, point to System, and click on Payroll Tax.

49. THANK YOU FOR ATTENDING!