Year End Closing Procedures Microsoft Dynamics GP

December 18, 2018

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YEAR-END CLOSE AVAILABLE RESOURCES .................................................................................................. 3

MANUFACTURING AND FIELD SERVICE ......................................................................................................... 4

SALES ORDER PROCESSING ................................................................................................................................ 4

PURCHASE ORDER PROCESSING ....................................................................................................................... 6

INVENTORY ............................................................................................................................................................... 9

PAYROLL .................................................................................................................................................................. 13

PAYROLL – ALTERNATE CHECKLIST ............................................................................................................ 25

RECEIVABLES MANAGEMENT.......................................................................................................................... 39

PAYABLES MANAGEMENT ................................................................................................................................. 43

FIXED ASSET MANAGEMENT ............................................................................................................................ 51

GENERAL LEDGER ................................................................................................................................................ 57

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YEAR-END CLOSE AVAILABLE RESOURCES o OTT, Inc. Technical Support Line: 651.262.2626

E-mail: support@OTT-Inc.com

o Microsoft Dynamics GP – Customer Source website https://mbs.microsoft.com/customersource/northamerica/GP/

o Payroll Year End and Tax Updates

GP 2013 Year End Update

Note: GP 2013 is no longer supported so there will be no Year End Update released.

GP 2015 Year End Update

https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/usgpye2015

Note: To install the 2018 Year-End update, you will need to be on 14.00.1059 or later

GP 2016 Year End Update

https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/usgpye2016

Note: To install the 2018 Year-End update, you will need to be on 16.00.0620 or later

GP 2018 Year End Update

https://mbs.microsoft.com/customersource/northamerica/GP/downloads/tax-regulatory-updates/usgpye2018

*You can use this section of CustomerSource to find out what year-end maintenance and tax changes are included in each update and to download the update. All instructions for downloading and installing the tax updates will be provided there.

Payroll Tax Updates are targeted for a release date of mid-December 2018.

Versions GP 2015, GP 2016 & GP 2018 Downloadable Payroll Tax Updates are accessible through Microsoft Dynamics GP by navigating to:

o Microsoft Dynamics GP (from the Toolbar menu) - Maintenance - US Payroll Updates - Check for Tax Updates. You will be asked for your Authorized Phone Number and then be able to automatically download the update.

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MANUFACTURING AND FIELD SERVICE Use the procedures described in preparation for the Inventory year end closing process. There is no predefined procedure to close the year for manufacturing or field service; however, the procedures listed below are recommended to ensure the Inventory module closes correctly. These are processes that should be performed on a monthly basis as well as at year-end.

1. PROCESS AND POST ALL TRANSACTIONS FOR THE YEAR Regardless of which product you own to do work orders, or manufacturing orders, the key thing to accomplish prior to yearend is to treat it just like you would for any month end. Whether you use Dynamics GP Bill of Materials, Dynamics GP Manufacturing, or Horizon’s Manufacturing, you would want to process any issue or labor transactions that need to be recorded in the current month. You also would want to post and close any orders that need to be completed. As with Manufacturing, if you have or use the Field Service modules, be sure to process any contracts, service calls, returns, equipment transactions, and work orders prior to month end so the appropriate revenues and expenses are recognized. This same routine would be required during month end processing throughout the year. If both Manufacturing and Field Service are utilized, then business processes should dictate the order that the transactions should be processed. If any questions, contact OTT, Inc. Tech Support and they can help determine the answer.

SALES ORDER PROCESSING Use the procedures described in preparation for the Inventory year end closing process. There is no predefined procedure to close the year in the Sales Order Processing module; however, the procedures listed below are recommended to ensure the Inventory module closes correctly. These are processes that should be performed on a monthly basis as well as at year-end.

1. PROCESS AND POST ALL TRANSACTIONS FOR THE YEAR Be sure all Invoicing or Sales Order Processing transactions for the current year have been entered and posted before you close the year. This is important to ensure historical information is accurate for the year being closed and year-to-date amounts are accurately stated for the upcoming year. If future-year transactions need to be entered before closing the current year, create a new batch with transactions for the future-year, but don't post the batch until the current year has been closed. Sales – Transactions – Series Post

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2. RECONCILE SALES DOCUMENTS Note: Perform Sales Order Processing reconciliations prior to performing the Inventory reconciliation.

Sales – Utilities – Reconcile-Remove Sales Documents

The Reconcile Sales Documents performs the following tasks and makes adjustments as necessary:

o Sums the extended prices to verify that document subtotals are correct o Verifies remaining item quantities o Verifies the remaining subtotal figure on Sales Document Detail Entry

o Verifies fulfilled item quantities for serial and lot numbered items

(Quantity fulfilled = number of serial/lot numbers entered) o Verifies quantities on quotes, orders, invoices and back orders o Verifies quantities on returns

(Quantity returned = qty on hand + qty in use + qty in service + qty returned + qty damaged)

3. REMOVE COMPLETED SALES DOCUMENTS This process pertains only to quotes, orders and back orders. It will move completed documents from work to history, if you are keeping history. A document is considered completed if it does not contain a deposit and if all line items have a remaining quantity of zero. Typically, completed documents are moved from work to history during the transfer process. However, there may be cases when the quantity remaining on an order or backorder may be canceled. Since there are no remaining quantities to transfer, the document will remain in work until it is removed to history using the Remove Sales Documents window. Sales – Utilities – Reconcile – Remove Sales Documents

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PURCHASE ORDER PROCESSING Use the procedure described in this section in preparation for the Inventory year end closing process. There is no predefined procedure to close the year in the Purchase Order Processing module; however, the procedures listed below are recommended to ensure the Inventory module closes correctly. The procedures listed below are recommended for year end. These are processes that should be performed on a monthly basis as well as at year-end.

1. PROCESS AND POST ALL TRANSACTIONS FOR THE YEAR Make sure that all Receiving, Invoice Matching, and Return transactions are posted for the year you are closing. Those transactions can be posted in the following windows. Receiving & Invoice matching transactions can be posted in the Purchasing Series Posting window. Purchasing – Transactions – Series Post

2. RECONCILE PURCHASE ORDERS Use the Reconcile Purchasing Documents window to reconcile purchase orders. Reconciling will verify that totals on purchase orders match the totals recorded in accounting records. Note: Perform Purchase Order Processing reconciliations prior to performing the Inventory reconciliation. Purchasing – Utilities – Reconcile Purchasing Documents

Reconciling purchase orders will cause the following to be recalculated and adjusted if needed:

o Document quantity canceled o Document subtotals o Document extended costs and remaining quantities o Remaining purchase order subtotals

o Purchase order status o Line item status o Line item extended cost o Discount available o Trade discount

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3. REMOVE COMPLETED PURCHASE ORDERS

Use the Remove Completed Purchase Orders window to remove any closed or canceled documents from the “active” Purchase Order Work to History. Purchasing – Routines – Remove Completed Purchase Orders

By Clicking the Restrictions button you can view a list of Purchase Orders to be processed.

Note: You should remove your completed purchase orders periodically. Purchase Orders should be removed after you no longer need to make any receiving against them or when you no longer need to reject or cancel any items on the purchase orders.

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4. PRINT ADDITIONAL REPORTS Print any additional reports needed for planning or permanent records, including the Purchase Order Analysis and Received/Not Invoiced. Note: We recommend that you print a Received/Not Invoiced Report that you keep for year end. This should be reconciled to your Accrued Purchases---Liability account. Purchasing – Reports – Analysis – Received / Not Invoiced

GP2015 R2 or later includes:

5. MAKE A BACKUP Make a backup of the company's data files and keep it in safe, permanent storage. This gives you a permanent record prior to the removal of purchase history at the time you closed the year, and can be restored later if necessary.

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INVENTORY Use the procedures described in this section to close the year for Inventory Control and prepare inventory records for the new fiscal year.

1. POST ALL TRANSACTIONS FOR THE YEAR Be sure that all Invoicing, Sales Order Processing, Purchase Order Receiving & Invoice Matching, Purchase Order Returns, Bill of Material Assembly, and Inventory transactions for the current year have been entered and posted before you close the year. If you wish to enter future-period transactions before closing the year, create a new batch with new transactions, but do not post it until after the year has been closed. Inventory – Transactions – Series Post

2. RECONCILE INVENTORY QUANTITIES

Reconcile quantities ensures that your Inventory Control data hasn't become damaged over the course of the year. If any discrepancies are found during the reconcile process, the quantities will be adjusted. If adjustments are made, they'll be reflected on the Reconcile Report, along with any serial numbers and/or lot numbers that were added for the adjusted items. If you want to edit these serial and lot numbers, you can use the Item Transaction Entry window by making adjustment transactions.

Inventory–Utilities – Reconcile

Note: Perform Sales Order Processing and Purchase Order Processing year end processing prior to performing the Inventory reconcile process. If you’re reconciling inventory due to changing the number of quantity decimals for an item, mark the Include Item History option so the item's history records are also updated within the system.

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3. COMPLETE A PHYSICAL INVENTORY COUNT AND POST ANY ADJUSTMENTS A Stock Count can be started through the Stock Count Schedule window. This will allow you to print the Stock Count Form to take your physical count. Enter the counts for each item in the Stock Count Entry window. It is recommended to utilize Cycle Counting functionality for inventory counts throughout the year and perform a complete physical inventory count as part of your annual accounting practices. Inventory–Transactions – Stock Count Schedule

4. PRINT ADDITIONAL REPORTS Print any additional reports you'll need for planning or your permanent records, including the Stock Status Report, Purchase Receipts Report, Turnover Report, Transaction History Report, Serial Number List, and Lot Number List. There is also a Historical Stock Status report for Inventory however this report may have a different result due to how it’s programmed. If you plan to remove sold purchase receipts during the year-end closing process, we recommend that you print the Purchase Receipts Report to review the receipts that will be removed. Note: We strongly recommend that you print a Stock Status Report and a Historical IV Trial Balance to keep for year end. Inventory – Reports – Activity Reports – Stock Status Inventory – Reports – Activity Reports – Purchase Receipts Inventory – Reports – Analysis – Turnover Report

5. MAKE A BACKUP Make a backup of all company data. This is important to ensure that you'll be able to recover quickly should a power fluctuation or other problem occur during the year-end closing procedure.

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6. CLOSE THE YEAR Inventory – Routines – Year-End Close

Closing a year accomplishes the following tasks:

o Transfers all summarized current-year quantity, cost and sales amounts to transaction history for the items for which you've been keeping summarized sales history.

o Updates the item's beginning quantity to the quantity on hand at each site. Certain reports, such as the Turnover Report, use the beginning quantity field for report calculations.

o Zeros the quantity sold field in Item Quantities Maintenance for each site. Use the Inventory Year-End Closing window to close the year. Use the following descriptions to learn more about each option:

o Remove: Discontinued Items – If the Discontinued Items option is marked, all discontinued items that have a zero balance will be removed during the year-end closing process. (Items can be designated as discontinued using the Item Maintenance window.) Discontinued Items that have a Quantity On Hand of zero (except for kit components) and do not have any unposted transactions will be completely removed from the Inventory module. The Sales Order Processing, Invoicing, or Purchase Order Processing reports and inquiries will still be able to pull information regarding these discontinued items, however you will not be able to do a lookup on the Item Number since it has been removed from the Item Master. If you would like to print a report or inquire on the discontinued Item, you will need to include the Item within the Item Number Range.

o Remove: Sold Receipts and Cost Change History– If Sold Receipts is marked, all sold receipts where quantity received and quantity sold amounts are equal will be removed, as well as historical cost changes. This is an optional step and may not be a procedure that is done every year-end. These values may be helpful when items are returned through Invoicing so you may not want to remove the receipts from the file.

o Remove: Sold Lot Attributes – If Sold Lot Attributes is marked, values for completely sold lot numbers will be removed. (For example, you can remove the value red for the lot attribute color if you've sold all lot-numbered items that have been assigned the value red.)

o Update: Item's Standard Cost – If item's Standard Cost is marked, 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 or the amount you most recently paid for the item.

When you've selected the options necessary, choose OK to begin the year-end closing process. Whether you mark any of the options needs to be determined on an individual company basis. While the year is being closed, it is recommended not to have any processes running.

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7. CLOSE THE FISCAL PERIODS FOR THE INVENTORY SERIES (OPTIONAL) Inventory Fiscal Periods can be closed once the Inventory Year End Close process has been completed. This keeps transactions from accidentally being posted to the wrong period or year. Be sure all transactions for the period and year have been posted before closing fiscal periods. If transactions need to be posted to a fiscal period, the fiscal periods will need to be reopened before the transaction can be posted. Administration – Setup – Company – Fiscal Periods Click to select the Inventory check box for the period that you want to close.

8. DISTRIBUTION TIPS & TRICKS

o The year-end close must be done before any transactions for the next year have been posted. o You have the option of marking Discontinued Items, Sold Receipts or Sold Lot Attributes. If marked, all

discontinued items, sold receipts or sold lot attributes that have a zero balance will be remove during the year-end closing process.

o There is no Year End Closing report for Inventory.

9. INVENTORY YEAR END Q & A’S Q1: Can the Inventory Year-End Closing window be used throughout the year to update the standard cost of items if using the periodic valuation method? A1: This is not recommended because the beginning quantity field is updated during the year-end closing process. This would make that field incorrect on reports such as the Turnover Report.

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PAYROLL Use the following procedures if 2018 W-2 and 1099-R statements will be printed before the 2019 pay runs will be processed.

1. VERIFY THE VERSION OF MICROSOFT DYNAMICS GP (Help – About Microsoft Dynamics GP)

One of the following versions must be running to install the Payroll Update: o GP 2015 o GP 2016 o GP 2018

2. COMPLETE ALL 2018 PAY RUNS The year-end process should not be started until after the last payroll pay run has been completed for 2018. The 2019 payroll tax update must not be installed until the last pay run has been completed for 2018.

3. COMPLETE ALL MONTHLY AND QUARTERLY PAYROLL PERIOD-END PROCEDURES FOR 2018 (HR & Payroll – Reports – Period-End)

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Use the Period-End Payroll Reports window to print any or all of the Period-End reports. These reports provide period summary information about pay codes, departments, positions, deductions, benefits, state taxes, local taxes, unemployment taxes and workers' compensation. The period will be determined by the dates entered in the Date From and Date To fields. For a monthly report, enter the first and last day of the month. For a quarterly report, enter the first and last day of the quarter. Period- End reports can contain information for more than one month, quarter, or year provided. You specify a range in the Date From and Date To fields. Select multiple reports by clicking on a report and clicking on additional reports while holding the Ctrl key. You also have the option of posting the monthly FUTA, SUTA and Workers' Compensation tax liabilities. Print and review the FUTA Summary, SUTA Summary and Workers’ Compensation Summary before posting these liabilities. These liabilities can be posted either monthly or quarterly, but not both. Please note the system will not stop you from posting these liabilities multiple times.

4. COMPLETE ALL PAYROLL QUARTER-END PROCEDURES (HR & Payroll – Reports – Quarter-End)

Use the Quarter-End Payroll Reports window to print quarter-end reports. These include the 941 Preparation Report, Form 941 and the Form 941 Schedule B Preparation Report. Print these reports for a quarterly summary of your wages and taxes.

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5. MAKE A PRE-YEAR-END BACKUP Make a backup titled “Pre-Year-End Wage File 2018.” The IRS requires you to keep these records for at least four years.

6. INSTALL THE 2018 PAYROLL YEAR-END AND W-2 ELECTRONIC FILING UPDATE Microsoft Business Solutions releases periodic updates to Payroll program code to maintain compliance with government legal requirements. These updates typically occur at calendar year end, and occasionally during the year. Collectively, Payroll code updates are called “year-end updates” or “compliance updates”. Year End Updates are distributed as Microsoft Windows Installer patch (.msp) files and are installed the same way as service packs. Year End Updates must be installed on each computer that has Microsoft Dynamics GP installed. Year End Updates do not contain tax table information. You must install each type of update separately.

For Version GP 2015, GP 2016 & GP 2018: Year End Updates must be downloaded from CustomerSource. If you need assistance in downloading and/or installing this update, please contact the OTT, Inc. Technical Support line at 651-262-2626, option #1.

7. CREATE THE YEAR-END WAGE FILE (HR & Payroll – Routines – Year-End Closing) Use the Payroll Year-End Closing window to create a file of annual wage information. This file will be used to print W-2 and 1099-R statements.

Verify the correct is shown and click “Process.” A report will not automatically be printed. The report is printed during the Verify W-2 and 1099-R statement information step. Note: You can install 2019 tax tables any time after you have created the Year-End Wage File. The install is done from one workstation only and updates the Tax Tables for the entire system.

8. MAKE A POST-YEAR-END BACKUP Make a backup titled “Post-Year-End Wage File 2018” The IRS requires you to keep these records for at least four years.

9. VERIFY W-2 AND 1099-R STATEMENT INFORMATION (HR & Payroll – Routines – Year-End Wage Report)

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Use the Year-End Wage Report window to print the Year-End Employee Wage Report to verify W-2 amounts before printing W-2 statements. This report includes the same information that appears on the W-2 statement and includes headings for each field. You can print the Year-End Employee Wage Report only if the year-end wage file exists for the year to use. Select the employee type - Regular or Medicare Qualified Government Employees. Employees classified as Medicare Qualified Government Employees (MQGE) always are listed after all Regular employees. Medicare Qualified Government Employees are exempt from FICA Social Security tax but subject to FICA Medicare tax.

10. EDIT W-2 & 1095-C, IF NECESSARY (HR & Payroll – Routines – Edit W-2s)

Use the Edit W-2 Information window to verify and make changes to an employee's W-2 information. For example, an employee's address might have changed. Select the year. Select an employee ID. The employee's Social Security number and address will be displayed. You can edit this information. Edit the wage and withholding information for the employee, if necessary.

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Mark the boxes that apply to the employee whose W-2 information you're editing. Your entries in the Employee Tax Maintenance window will appear as default entries and will appear on the W-2 statement. Choose Special, Other, State or Local to open the appropriate Edit W-2 Tax Information window. Use these windows to view and change information for Special (W-2 Box 12), Other (W-2 Box 14), state and local tax information that will be printed on the W-2 statement. Choose 1095-C or Dependents to edit 1095-C employee information. Note: If Human Resources wasn’t installed & implemented for the entire year, manual edits will need to be completed here. Choose OK to close the window. The Edit W-2 Information window will be redisplayed, and you can continue editing W-2 information. Choose Save to save the information you've entered. Note: Any changes made to information in this window will not change the information in the Employee Maintenance or Transaction History windows, and will be overridden if the year-end wage file is recreated. Note: Amounts for wages and taxes are calculated during pay runs; they should be correct. If you edit these amounts, other government required tax reports may not agree. Note: You should always review IRS rule changes for the applicable tax year before editing W-2 information. Note: If you make changes to your information, we recommend you make another backup.

11. W-2 VALIDATION REPORT, W-2 FORMS, W-3 TRANSMITTAL FORM, 1095-C AND 1094-C

TRANSMITTAL (HR & Payroll-Routines – Print W-2s)

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Select the year to print W-2 statements. Select a printing option. To print W-2 statements for employees at the end of the year, mark Normal Year-End. To print W-2 statements for inactive employees before the end of the year, mark Pre-Year-End Inactive Employees. Select an employee type. Choose Regular for employees who are required to pay both FICA Social Security and FICA Medicare taxes. Choose Medicare Qualified Government Employee for employees who are exempt from FICA Social Security tax but subject to FICA Medicare tax. For Medicare Qualified Government Employee, this must also be selected in the Employee Tax Maintenance window for each employee whose W-2 statement you're printing. Enter a range of employee ID, or mark ‘All’ to print W-2 statements for all employees. Enter a starting control number. This is the number you can assign to help you track the W-2 statements you print. Select a sorting order for the W-2 statements. Forms should be filed with the Social Security Administration either alphabetically by employees’ last names or numerically by employees’ social security numbers. Enter your company name, address and employer identification number. Select a form to print. Mark Validation Report to print a report to verify information, such as employee Social Security numbers.

o Mark W-2 Forms Alignment to print a test form to ensure the forms are aligned. o Mark W-2 Forms to print the W-2 statements. o Mark W-3 Transmittal Form to print a summary of the W-2 statements.

Print a Validation Report and verify the information before printing W-2 and W-3 statements. Choose Print to print the report or forms you selected. If you're printing W-2 statements, be sure to insert W-2 forms in the printer.

12. EDIT 1099-RS, IF NECESSARY (HR & Payroll – Routines – Edit 1099-Rs)

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The Edit 1099-R Information window is used to review, and, if necessary, make changes to an employee's 1099-R information before printing 1099-R statements. Any changes that you make in this window will appear on the employee's 1099-R statements. Use form 1099-R to report any distributions from profit-sharing or retirement plans, IRAs, annuities, pensions, insurance contracts, survivor income benefit plans and so on, whether or not federal tax is withheld. Enter or select an employee ID. The employee's Social Security number and address will be displayed. You can edit this information. Changing this information here will not change the information in the Employee Maintenance window. Select the year. Change the gross distribution amount of the pension, if necessary. The gross distribution amount is the total amount of pension the employee received in the selected year. If a portion of the distribution is taxable, enter that amount. Otherwise, leave the Taxable Amount Not Determined field marked and the Taxable Amount as 0. Change other distribution information, if necessary. Change the amounts of the federal and state income tax withheld, if necessary. You also can change the state, payers’ state ID, local income tax withheld and the locality to which the tax was paid. Choose Save to save the information entered. Note: You should always review IRS rule changes for the applicable tax year before editing 1099-R information.

13. PRINT 1099-R VALIDATION REPORT, 1099-R FORMS AND 1096 TRANSMITTAL FORM (HR & Payroll – Routines – Print 1099-Rs)

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Use the Print 1099-R Forms window to print 1099-R statements. These statements show an employee's distribution from a retirement plan. Select the year to print 1099-R statements. Enter a range of employee IDs, or mark All to print 1099-R statements for all employees. Select the sorting order for the 1099-R statements. Enter your company name, address and employer identification number. Select the form type to print. Mark Validation Report to print a report to verify information before printing the1099-R

o Mark 1099-R Forms Alignment to print a test form to ensure the forms are aligned. o Mark 1099-R Forms to print the 1099-R statements. o Mark 1096 Transmittal Form to print a summary of the 1099-R statements. o Choose Print to print the report or forms you selected. If you're printing 1099-R statements, be

sure to insert 1099-R forms in the printer.

14. CREATE A W-2 ELECTRONIC FILE (OPTIONAL) (HR & Payroll – Routines – W-2 Electronic Filing)

Use the W-2 Electronic Filing window to create a W-2 Electronic file. If your company has more than 250 employees, the Social Security Administration requires you to create and submit a W-2 Electronic Filing file containing your Federal W-2 statements. Select the year.

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Mark the companies that will be included in the file. Enter a file name and destination for the file you are creating. You can change the destination; however, the Social Security Administration requires you to name the submitted file W2REPORT. Use the Electronic Filer Submitter Information window to enter complete information for the submitter of the W-2 Electronic File to the IRS.

Create the file and submit it to the Social Security Administration.

15. PRINT DETAILED EMPLOYEE LIST (OPTIONAL BUT RECOMMENDED) (HR & Payroll – Reports – Employees Lists – Detail Employee List – Options)

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This report is very useful to document all relevant information about an employee. The information shown on this report is used on Quarterly and Year End reports. Therefore if you have any questions about how information was reported, this report will give you the data.

16. ARCHIVE INACTIVE EMPLOYEE HUMAN RESOURCES INFORMATION (OPTIONAL) (HR & Payroll – Utilities – Human Resources – Archive Employee)

Use the Employee Archive window to archive and keep history of an employee record. To delete that employee record from the employee table, you must delete the employee record from the Employee Maintenance window after archiving it. Enter or select an employee ID. Mark the records of this employee to archive. If you mark Attendance and you don't mark Include Transactions, employee maintenance information and yearly accrual summary information for the employee will be archived. If you mark Include Transactions, all the transactions for this employee will be archived. You must mark Attendance if you want to mark Include Transactions. Choose Save.

17. REMOVE INACTIVE EMPLOYEE RECORDS (OPTIONAL) (HR & Payroll – Utilities – Remove Inactive Records)

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If you’re using Human Resources:

Removing inactive records in Payroll will also remove inactive records in Human Resources. If you’re using Direct Deposit:

Removing inactive employee records will also remove records of employees that were marked as inactive in the Employee Direct Deposit Maintenance window.

If you mark Remove Inactive Employee Records only, history for payroll reports will be retained. If you mark Remove Inactive Employee and Remove History for Inactive Employee Records, reprint journals will not print correct information.

18. SET UP FISCAL PERIODS FOR THE YEAR 2019 (Administration – Setup – Company – Fiscal Periods)

19. CLOSE THE FISCAL PERIODS FOR THE PAYROLL SERIES (OPTIONAL) (Administration – Setup – Company – Fiscal Periods)

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20. INSTALL THE 2019 PAYROLL TAX UPDATE Note: The target date for release of the 2019 Payroll Tax Update Round 1 is mid-December. For Version GP 2015, GP 2016 & GP 2018: Within Microsoft Dynamics GP navigate to Microsoft Dynamics GP (from the Toolbar Menu) – Maintenance – US Payroll Updates – Check for Tax Updates. You will be asked for your Authorized Phone Number and then be able to automatically download updates. Payroll Tax Updates are available to all Microsoft Dynamics GP customers enrolled in Enhancement or support programs. Tax updates must be downloaded, as they are no longer shipped to customers. Note: In order to update the payroll tax tables, the user must be logged in as ‘sa’. The Payroll Tax Update only needs to be installed on one workstation to update the Tax Tables for the entire system.

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PAYROLL – ALTERNATE CHECKLIST Use the following checklist if you need to process 2019 pay runs before printing your 2018 W-2 and 1099-R statements.

1. VERIFY THE VERSION OF MICROSOFT DYNAMICS GP (Help – About Microsoft Dynamics GP)

One of the following versions must be running to install the Payroll Update: o GP 2015 o GP 2016 o GP 2018

2. COMPLETE ALL 2018 PAY RUNS The year-end process should not be started until after the last payroll pay run has been completed for 2018. The 2019 payroll tax update must not be installed until the last pay run has been completed for 2018.

3. COMPLETE ALL MONTHLY AND QUARTERLY PAYROLL PERIOD-END PROCEDURES FOR 2018

(OPTIONAL) (HR & Payroll – Reports – Period-End)

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Use the Period-End Payroll Reports window to print any or all of the Period-End reports. These reports provide period summary information about pay codes, departments, positions, deductions, benefits, state taxes, local taxes, unemployment taxes and workers' compensation. The period will be determined by the dates entered in the Date From and Date To fields. For a monthly report, enter the first and last day of the month. For a quarterly report, enter the first and last day of the quarter. Period- End reports can contain information for more than one month, quarter, or year provided. You specify a range in the Date From and Date To fields. Select multiple reports by clicking on a report and clicking on additional reports while holding the Ctrl key. You also have the option of posting the monthly FUTA, SUTA and Workers' Compensation tax liabilities. Print and review the FUTA Summary, SUTA Summary and Workers’ Compensation Summary before posting these liabilities. These liabilities can be posted either monthly or quarterly, but not both. Please note the system will not stop you from posting these liabilities multiple times.

4. COMPLETE ALL PAYROLL QUARTER-END PROCEDURES (OPTIONAL) (HR & Payroll – Reports – Quarter-End)

Use the Quarter-End Payroll Reports window to print quarter-end reports. These include the 941 Preparation Report, Form 941 and the Form 941 Schedule B Preparation Report. Print these reports for a quarterly summary of your wages and taxes.

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5. MAKE A PRE-YEAR-END BACKUP Make a backup titled “Pre-Year-End Wage File 2018.” The IRS requires you to keep these records for at least four years.

6. INSTALL THE 2018 PAYROLL YEAR-END AND W-2 ELECTRONIC FILING UPDATE Microsoft Business Solutions releases periodic updates to Payroll program code to maintain compliance with government legal requirements. These updates typically occur at calendar year end, and occasionally during the year. Collectively, Payroll code updates are called “year-end updates” or “compliance updates”. Year End Updates are distributed as Microsoft Windows Installer patch (.msp) files and are installed the same way as service packs. Year End Updates must be installed on each computer that has Microsoft Dynamics GP installed. Year End Updates do not contain tax table information. You must install each type of update separately.

For Version GP 2015, GP 2016 & GP 2018: Year End Updates must be downloaded from CustomerSource. If you need assistance in downloading and/or installing this update, please contact the OTT, Inc. Technical Support line at 651-262-2626, option #1.

7. CREATE THE YEAR-END WAGE FILE (HR & Payroll – Routines – Year-End Closing) Use the Payroll Year-End Closing window to create a file of annual wage information. This file will be used to print W-2 and 1099-R statements.

Verify the correct year is shown and click “Process.” A report will not automatically be printed. The report is printed during the Verify W-2 and 1099-R statement information step. Note: You can install 2019 tax tables any time after you have created the Year-End Wage File. The install is done from one workstation only and updates the Tax Tables for the entire system.

8. MAKE A POST-YEAR-END BACKUP Make a backup titled “Post-Year-End Wage File 2018” The IRS requires you to keep these records for at least four years.

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9. VERIFY W-2 AND 1099-R STATEMENT INFORMATION (HR & Payroll – Routines – Year-End Wage Report)

Use the Year-End Wage Report window to print the Year-End Employee Wage Report to verify W-2 amounts before printing W-2 statements. This report includes the same information that appears on the W-2 statement and includes headings for each field. You can print the Year-End Employee Wage Report only if the year-end wage file exists for the year to use. Select the employee type - Regular or Medicare Qualified Government Employees. Employees classified as Medicare Qualified Government Employees (MQGE) always are listed after all Regular employees. Medicare Qualified Government Employees are exempt from FICA Social Security tax but subject to FICA Medicare tax.

10. PRINT DETAILED EMPLOYEE LIST (OPTIONAL BUT RECOMMENDED) (HR & Payroll – Reports – Employees Lists – Detail Employee List – Options)

This report is very useful to document all relevant information about an employee. The information shown on this report is used on Quarterly and Year End reports. Therefore if you have any questions about how information was reported, this report will give you the data.

11. ARCHIVE INACTIVE EMPLOYEE HUMAN RESOURCES INFORMATION (OPTIONAL) (HR & Payroll – Utilities – Human Resources – Archive Employee)

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Use the Employee Archive window to archive and keep history of an employee record. To delete that employee record from the employee table, you must delete the employee record from the Employee Maintenance window after archiving it. Enter or select an employee ID. Mark the records of this employee to archive. If you mark Attendance and you don't mark Include Transactions, employee maintenance information and yearly accrual summary information for the employee will be archived. If you mark Include Transactions, all the transactions for this employee will be archived. You must mark Attendance if you want to mark Include Transactions. Choose Save.

12. REMOVE INACTIVE EMPLOYEE RECORDS (OPTIONAL) (HR & Payroll – Utilities – Remove Inactive Records)

If you’re using Human Resources:

Removing inactive records in Payroll will also remove inactive records in Human Resources. If you’re using Direct Deposit:

Removing inactive employee records will also remove records of employees that were marked as inactive in the Employee Direct Deposit Maintenance window.

If you mark Remove Inactive Employee Records only, history for payroll reports will be retained. If you mark Remove Inactive Employee and Remove History for Inactive Employee Records, reprint journals will not print correct information.

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13. SET UP FISCAL PERIODS FOR THE YEAR 2019 (Administration – Setup – Company – Fiscal Periods)

14. CLOSE THE FISCAL PERIODS FOR THE PAYROLL SERIES (OPTIONAL) (Administration – Setup – Company – Fiscal Periods)

15. INSTALL THE 2019 PAYROLL TAX UPDATE Note: The target date for release of the 2019 Payroll Tax Update Round 1 is mid-December. For Version GP 2015, GP 2016 & GP 2018: Within Microsoft Dynamics GP navigate to Microsoft Dynamics GP (from the Toolbar Menu) – Maintenance – US Payroll Updates – Check for Tax Updates. You will be asked for your Authorized Phone Number and then be able to automatically download updates. Payroll Tax Updates are available to all Microsoft Dynamics GP customers enrolled in Enhancement or support programs. Tax updates must be downloaded, as they are no longer shipped to customers. Note: In order to update the payroll tax tables, the user must be logged in as ‘sa’. The Payroll Tax Update only needs to be installed on one workstation to update the Tax Tables for the entire system.

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16. PROCESS 2018 PAYROLL

17. EDIT W-2’S, IF NECESSARY (HR & Payroll – Routines – Edit W-2s)

Use the Edit W-2 Information window to verify and make changes to an employee's W-2 information. For example, an employee's address might have changed. Select the year. Select an employee ID. The employee's Social Security number and address will be displayed. You can edit this information. Edit the wage and withholding information for the employee, if necessary. Mark the boxes that apply to the employee whose W-2 information you're editing. Your entries in the Employee Tax Maintenance window will appear as default entries and will appear on the W-2 statement. Choose Special, Other, State or Local to open the appropriate Edit W-2 Tax Information window. Use these windows to view and change information for Special (W-2 Box 12), Other (W-2 Box 14), state and local tax information that will be printed on the W-2 statement. Choose 1095-C or Dependents to edit 1095-C employee information. Note: If Human Resources wasn’t installed & implemented for the entire year, manual edits will need to be completed here. Choose OK to close the window. The Edit W-2 Information window will be redisplayed, and you can continue editing W-2 information. Choose Save to save the information you've entered. Note: Any changes made to information in this window will not change the information in the Employee Maintenance or Transaction History windows, and will be overridden if the year-end wage file is recreated.

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Note: Amounts for wages and taxes are calculated during pay runs; they should be correct. If you edit these amounts, other government required tax reports may not agree. Note: You should always review IRS rule changes for the applicable tax year before editing W-2 information. Note: If you make changes to your information, we recommend you make another backup.

18. W-2 VALIDATION REPORT, W-2 FORMS, W-3 TRANSMITTAL FORM, 1095-C AND 1094-C

TRANSMITTAL (HR & Payroll-Routines – Print W-2s)

Select the year to print W-2 statements. Select a printing option. To print W-2 statements for employees at the end of the year, mark Normal Year-End. To print W-2 statements for inactive employees before the end of the year, mark Pre-Year-End Inactive Employees. Select an employee type. Choose Regular for employees who are required to pay both FICA Social Security and FICA Medicare taxes. Choose Medicare Qualified Government Employee for employees who are exempt from FICA Social Security tax but subject to FICA Medicare tax. For Medicare Qualified Government Employee, this must also be selected in the Employee Tax Maintenance window for each employee whose W-2 statement you're printing. Enter a range of employee ID, or mark ‘All’ to print W-2 statements for all employees. Enter a starting control number. This is the number you can assign to help you track the W-2 statements you print.

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Select a sorting order for the W-2 statements. Forms should be filed with the Social Security Administration either alphabetically by employees’ last names or numerically by employees’ social security numbers. Enter your company name, address and employer identification number. Select a form to print. Mark Validation Report to print a report to verify information, such as employee Social Security numbers.

o Mark W-2 Forms Alignment to print a test form to ensure the forms are aligned. o Mark W-2 Forms to print the W-2 statements. o Mark W-3 Transmittal Form to print a summary of the W-2 statements.

Print a Validation Report and verify the information before printing W-2 and W-3 statements. Choose Print to print the report or forms you selected. If you're printing W-2 statements, be sure to insert W-2 forms in the printer.

19. EDIT 1099-RS, IF NECESSARY (HR & Payroll – Routines – Edit 1099-Rs)

The Edit 1099-R Information window is used to review, and, if necessary, make changes to an employee's 1099-R information before printing 1099-R statements. Any changes that you make in this window will appear on the employee's 1099-R statements. Use form 1099-R to report any distributions from profit-sharing or retirement plans, IRAs, annuities, pensions, insurance contracts, survivor income benefit plans and so on, whether or not federal tax is withheld. Enter or select an employee ID. The employee's Social Security number and address will be displayed. You can edit this information. Changing this information here will not change the information in the Employee Maintenance window.

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Select the year. Change the gross distribution amount of the pension, if necessary. The gross distribution amount is the total amount of pension the employee received in the selected year. If a portion of the distribution is taxable, enter that amount. Otherwise, leave the Taxable Amount Not Determined field marked and the Taxable Amount as 0. Change other distribution information, if necessary. Change the amounts of the federal and state income tax withheld, if necessary. You also can change the state, payers’ state ID, local income tax withheld and the locality to which the tax was paid. Choose Save to save the information entered. Note: You should always review IRS rule changes for the applicable tax year before editing 1099-R information.

20. PRINT 1099-R VALIDATION REPORT, 1099-R FORMS AND 1096 TRANSMITTAL FORM (HR & Payroll – Routines – Print 1099-Rs)

Use the Print 1099-R Forms window to print 1099-R statements. These statements show an employee's distribution from a retirement plan. Select the year to print 1099-R statements. Enter a range of employee IDs, or mark All to print 1099-R statements for all employees. Select the sorting order for the 1099-R statements. Enter your company name, address and employer identification number.

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Select the form type to print. Mark Validation Report to print a report to verify information before printing the1099-R

o Mark 1099-R Forms Alignment to print a test form to ensure the forms are aligned. o Mark 1099-R Forms to print the 1099-R statements. o Mark 1096 Transmittal Form to print a summary of the 1099-R statements.

o Choose Print to print the report or forms you selected. If you're printing 1099-R statements, be

sure to insert 1099-R forms in the printer.

21. CREATE A W-2 ELECTRONIC FILE (OPTIONAL) (HR & Payroll – Routines – W-2 Electronic Filing)

Use the W-2 Electronic Filing window to create a W-2 Electronic file. If your company has more than 250 employees, the Social Security Administration requires you to create and submit a W-2 Electronic Filing file containing your Federal W-2 statements. Select the year. Mark the companies that will be included in the file. Enter a file name and destination for the file you are creating. You can change the destination; however, the Social Security Administration requires you to name the submitted file W2REPORT. Use the Electronic Filer Submitter Information window to enter complete information for the submitter of the W-2 Electronic File to the IRS.

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Create the file and submit it to the Social Security Administration.

PAYROLL TIPS & TRICKS – TO BE USED WITH EITHER CHECKLIST Q1. I’m trying to process an annual bonus, and the calculated withholding taxes are obviously wrong. What causes that? A1. Microsoft Dynamics GP uses the Pay Period field of Pay Codes, Deductions, and Benefits to determine the tax table to use when calculating payroll taxes. All items on a single payment should be set to the same frequency. For example, if a Bonus Pay Code is set to Annually, then all other pay items occurring in the same payment should be set to Annually as well. This may require you to change the Pay Period of some pay items for one payment only, and then immediately change them back. Please note, IRS regulations state that federal income tax withholding for miscellaneous payments throughout the year should be calculated using a flat tax rate rather than using the tax tables. To do this, populate the Flat Tax Rate fields on the Pay Code setup. Q2. I have to add Group Term Life Insurance and/or Auto Allowances to an employee’s W-2. I have to add the amount to their gross wages and withhold taxes, but this isn’t a cash payment to the employee. How do I do that? A2. Non-cash benefits to employees that should be taxed should be set up in Microsoft Dynamics GP as Taxable Benefits. To do this, check the boxes for the applicable taxes in the Benefit Setup window. Assign the benefit to the appropriate employees and include in the next computer check payroll run. Q3. One of the Deductions was set up to be taxed (or not taxed) incorrectly. I’ve already processed and posted payroll using the deduction. How do I correct this error? A3. There isn’t an easy way to resolve this issue. Once a Deduction has history posted against it, the Subject to Tax fields cannot be changed. There are several options, however.

1. If you caught this error and only one payroll has been posted against the deduction, restore a backup and re-process payroll with the correct set up. This is the cleanest method, however, this is only possible if none of the pay checks have been issued to employees and/or cashed.

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2. If you are unable to restore a backup, the supported method is as follows:

a. Create and assign a new pay code with the same tax treatment as the incorrect deduction. b. Create and assign a new deduction with the correct tax treatment. c. Inactivate the incorrect deduction code. d. Process payroll, assigning an amount equal to the historical amount of the incorrect deduction to both the new pay code, and an amount equal to the historical amount of the incorrect deduction plus the current amount to the new deduction.

Q4. What will happen if I’ve already closed the 2018 Payroll tax year and don’t install the 2019 tax update right away? A4. Until you install the 2019 tax update containing FICA, Federal and State tax changes, the tax calculations for your 2019 pay runs may be incorrect, unless you’ve manually updated your tax tables. Q5. Are there any items Microsoft Dynamics GP does not update automatically that I must remember to update manually? A5. Yes, there are several items you must update manually after processing the final payroll of the year but before processing the first payroll of the new year, including but not limited to:

1. Unemployment tax rates and wage limits. 2. Maximum retirement plan deduction and benefit amounts.

Q6. If I use multiple companies with my accounting system, do I have to install the tax update for each company? A6. No, the program will automatically update the system tables containing the Payroll tax information. All of the companies will reflect the update. If your employer state ID number and employer unemployment ID numbers differ, verify the ID’s in the setup windows. Q7. Microsoft Dynamics GP allows you to maintain State ID numbers separate from Unemployment ID numbers. The State ID number is entered in Setup – Payroll – Tax ID. The Unemployment ID is entered in Setup – Payroll – Unemployment Tax. A7. If you haven’t created the Year-end Wage file – Before creating the Year-end Wage file (Step 7 of the Payroll Year-end Closing Checklist), verify the State ID number in the Tax ID Setup window. Then, create the Year-end Wage file. The Employer State ID number will be saved in the Year-end Wage file, which is used to print the W-2 statements. If you have created the Year-end Wage file – If you’ve already created the Year-end Wage file, and you had not entered your State ID, you’ll need to make this change individually for each applicable employee using the Edit W-2 State Tax Information window. Enter the Employer State ID number in the Employer’s State ID field. Q8. Is there a year-end closing procedure for Direct Deposit? A8. No, there are no year-end closing procedures for Direct Deposit. Q9. Is there a year-end closing procedure for Human Resources? A9. No, there are no year-end closing procedures for Human Resources. Q10. When I print the alignment form, information is only printing on the top form. How do I get it to print on both the top and bottom forms? A10. To see what W-2s will look like, you need to print a small range of employees as the alignment form will only print the top form.

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Q11. What are the filing due dates for the year end payroll reports? A11. Per IRS, the Protecting Americans from Tax Hikes (PATH) Act, enacted December 2015, includes a new requirement for employers. They are now required to file their copies of Form W-2, submitted to the Social Security Administration, by Jan. 31. In the past, employers typically had until the end of February, if filing on paper, or the end of March, if filing electronically, to submit their copies of these forms.

W-2 Statements Employees January 31, 2019

W-2 Statements, when filed on paper Social Security Administration January 31, 2019

W-2 Statements, when filed electronically Social Security Administration January 31, 2019

1095-C Statements Employees March 4, 2019

1095-C Statements, when filed on paper Social Security Administration February 28, 2019

1095-C Statements, when filed electronically Social Security Administration April 1, 2019

1094-C Transmittal, when filed on paper Social Security Administration February 28, 2019

1094-C Transmittal, when filed electronically Social Security Administration April 1, 2019

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RECEIVABLES MANAGEMENT You can use this checklist for the end of the fiscal year and for the end of the calendar year. Although Receivables Management is date sensitive in Microsoft Dynamics GP, the following items are updated based on the closing of Receivables Management:

o The SmartList objects o The Receivables Management summary reports o The Amounts Since Last Close view in the Customer Summary window

If you plan to use any of the above for reporting, you must follow these steps to ensure correct reporting.

1. Post all the sales and receivables transactions for the year 2. Make a pre-year-end closing backup 3. Close the year 4. Close the fiscal periods (This step is optional) 5. Close the tax year 6. Make a post-year-end closing backup

1. POST ALL SALES AND RECEIVABLES TRANSACTIONS FOR THE YEAR Post all the sales and receivables transactions for the year before you close the year. If you want to enter any sales and receivables transactions for a future period before you close the year, create and save a batch that contains the next year transactions. Post the batch after the current year is closed. The following areas are the areas in GP will be sensitive to when you close the Receivable Year:

o The Amounts Since Last Close view in the Customer Summary window To open the Amounts Since Last Close view in the Customer Summary window, follow these steps:

1. On the Cards menu, point to Sales, and then click Summary. 2. In the Customer Summary window, type a customer ID in the Customer ID box. 3. In the Summary View list, click Amounts Since Last Close

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o The Customer Finance Charge Summary window To open the Customer Finance Charge Summary window, follow these steps:

1. On the Cards menu, point to Sales, and then click Summary. 2. In the Customer Summary window, type a customer ID in the Customer ID field. 3. Click Finance Charges.

o SmartList objects See Frequently Asked Questions (FAQs) for more details about fields that only updated upon the Receivables Management year end close process.

2. MAKE A PRE-YEAR-END CLOSING BACKUP Create a backup before you close the year. Put the backup in safe, permanent storage. This backup makes sure that you have a permanent record of the company's financial position at the end of the year. You can restore information from this backup if needed. For example, this backup would let you quickly recover if a power fluctuation or another problem occurred during the year-end close procedure.

3. CLOSE THE YEAR (Sales – Routines – Year-End Close)

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1. If you are closing both the fiscal year and the calendar year at the same time, click All. If you are closing

only the calendar year, click Calendar. If you are closing only the fiscal year, click Fiscal. 2. Click to select the Print Report check box, and then click Close Year. Note: We recommend that you keep a copy of the year-end report together with the permanent year-end audit records.

4. CLOSE THE FISCAL PERIOD (OPTIONAL) (Admin – Company – Fiscal Periods) To prevent users from accidentally posting transactions to the wrong period or to the wrong year, use the Fiscal Periods Setup window to close all fiscal periods that are still open for the year. Before you close fiscal periods, verify that you have posted all the transactions for the period and for the year for all modules. If you must later post transactions to a fiscal period that you already closed, you can return to the Fiscal Periods Setup window to reopen the period so that you can post the transactions.

5. CLOSE THE TAX YEAR (Admin – Company – Routines - Tax Year-End Close) Note: Follow these steps only after you complete the year-end closing procedures for all the sales and purchasing modules.

1. Click to select the Close Year check box, and then click to select the Print Report check box. 2. Click Process.

Note: We recommend that you keep a paper copy of the year-end report together with the permanent year-end audit records.

6. MAKE A POST-YEAR-END CLOSING BACKUP Create a backup after you close the year. Put the backup in safe, permanent storage. This backup makes sure that you have a permanent record of the company's financial position at the end of the year. You can restore information from this backup if you have to. For example, this backup would let you quickly recover if a power fluctuation or another problem occurred during the year-end close procedure.

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7. YEAR-TO-DATE FINANCE CHARGES ON CUSTOMER STATEMENTS FOR DECEMBER AND FOR

JANUARY The YTD Finance Charges do not automatically print on the statements in December and January. If you want them to print on the statements you must modify them using the following procedures: The procedure for getting the YTD finance charges on the December and January statements takes two different steps, one for each month. December: Create a modified version of the statement and link the Customer MSTR Summary file to the report. In the Report Layout window, place the CYTD Finance Charges field (in the Customer MSTR Summary file) on the report. Save the report and print it. January: Create a modified version of the statement and link the Customer MSTR Summary file to the report. In the Report Layout window, place the LYTD field (in the Customer MSTR Summary file) on the report. Save the report and print it. If you wait until after January to run the Calendar Year End Close, any finance charges assessed during January will not update the year-to-date finance charges until after the calendar year-end close.

8. FREQUENTLY ASKED QUESTIONS (FAQS) Q1: What does the year-end close process do in Receivable Management? A1: The year-end close makes the following changes: Calendar year details

The calendar year-end process clears the following fields in the Customer Summary window: o Finance Charges CYTD o Total # FC YTD o Total Finance Charges YTD o Total Waived FC YTD o Unpaid Finance Charges YTD

The calendar year-end process updates the amounts in the following fields: o Finance Charges LYR Calendar o Total # FC LYR

Fiscal year details

The fiscal year-end process clears the following fields in the Customer Summary window:

o Average Days to Pay – Year

o High Balance YTD

o Number of ADTP Documents – Year

o Number of NSF Checks YTD

o Total # Invoices YTD

o Total Amount of NSF Check YTD

o Total Bad Debt YTD

o Total Cash Received YTD

o Total Discounts Available YTD

o Total Discounts Taken YTD

o Total Returns YTD

o Total Sales YTD

o Total Write offs YTD

o Write Offs YTD

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The fiscal year-end process updates the amounts in the following fields:

o High Balance LYR

o Number of ADTP Documents – LYR

o Total # Invoices LYR

o Total Bad Debt LYR

o Total Cash Received LYR

o Total Discounts Taken LYR

o Total Returns LYR

o Total Sales LYR

o Total Write offs LYR

o Write Offs LYR

PAYABLES MANAGEMENT Payables Management has two types of closing procedures: Calendar Year and Fiscal Year. Although Payables Management is date sensitive in Microsoft Dynamics GP, the following items are updated based on the closing of Payables Management:

o The SmartList objects o The Payables Management summary reports o The Amounts Since Last Close view in the Vendor Yearly Summary window

If you plan to use any of the above for reporting, you must follow these steps to ensure correct reporting.

Payables Management calendar year-end closing Payables Management fiscal year-end closing

1. Post all transactions for the year 2. Print the Aged Trial Balance with Options

report 3. Make a backup that is named "Pre-1099

Edits" 4. Verify the 1099 information and edit it if it is

required 5. Print the 1099 statements 6. Make a backup that is named "Pre Year-End" 7. Close the calendar year 8. Close the fiscal periods 9. Make a backup that is named "Post Year-End"

Frequently Asked Questions (FAQs)

1. Post all transactions for the year 2. Print the Vendor Period Analysis report 3. Make a backup that is named "Pre Year-End" 4. Close the fiscal year 5. Close the fiscal periods 6. Make a backup that is named "Post Year-End"

Frequently Asked Questions (FAQs)

1. POST ALL TRANSACTIONS FOR THE YEAR Post all transactions for the year before you close the year. If you want to enter future period transactions before you close the year, create a new batch for the future period transactions. Save the future period transactions in the new batch, but do not post the new batch until after the year has been closed. The following areas of Microsoft Dynamics GP are not date-sensitive:

o The Amounts Since Last Close view of the Vendor Yearly Summary window o SmartList objects

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o Vendor Summary reports These areas of Microsoft Dynamics GP will be incorrect if you do not close the payables year after you enter all current year transactions and before you enter/post all next year transactions. However, the Amounts Since Last Close view of the Vendor Yearly Summary window is editable. Therefore, you can update the information in the Amounts Since Last Close view of the Vendor Yearly Summary window if it is required.

2. PRINT THE HISTORICAL AGED TRIAL BALANCE REPORT We recommend that you print a copy of the Historical Aged Trial Balance report to keep with your year-end permanent financial records. To do this, follow these steps:

1. On the Reports menu, point to Purchasing, and then click Trial Balance. 2. In the Reports list, click Historical Aged Trial Balance. 3. Print/Age of Date is the end of the year.

3. INSTALL THE PAYABLE CHANGES USING THE PAYROLL YEAR-END UPDATE (OPTIONAL) If there are compliance changes for Payables Management, such as 1099 form changes, install the Payroll year-end update. If there are no changes or compliance issues for the tax year for Payables Management, you may skip this step. Review the changes that are included in the Payroll year-end update. To do this, visit the Microsoft Customer Source Web site links referenced on in the YEAR-END CLOSE AVAILABLE RESOURCES section (page 2).

4. VERIFY THE 1099 INFORMATION (Purchasing – Routines – Print 1099 – click printer icon upper right corner)

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5. EDIT THE 1099 INFORMATION GP 2013 or later: To edit 1099 information, use one of the following methods.

Use the Edit 1099 Transaction Information window. You can change Tax Type, Box and 1099 Amount. When you process the changes, the transactions are updated in the Open and History tables. (Purchasing – Transactions – Edit 1099 Transaction Information)

Use the Update 1099 information window to modify tax type or 1099 statement box numbers for a range of vendors, 1099 transactions, or both. (Purchasing – Utilities – Update 1099 Information)

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If the payable invoices are not in GP to modify using one of the methods above then use this method:

1. On the Cards menu, point to Purchasing, and then click 1099 Details. 2. In the Vendor ID list, click a vendor ID. 3. In the Tax Type list, select one of the following:

• Interest

• Dividend

• Miscellaneous 4. In the Display area, select Month and Year. 5. In the Amount column, type the correct 1099 amount needed to be correct for the year. Click Save.

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6. PRINT THE 1099 STATEMENTS (Purchasing – Routines – Print 1099) Note: You can do this at any time.

1. In the 1099 Year field, type current year 2. Each of your 1099 report types must be printed separately. In the Print 1099 window, click the options

that you want in the 1099 Type field and in the 1099 Box Number field, and then click Print. The following table provides additional information about the fields on the 1099 form and where this information can be located in Microsoft Dynamics GP.

1099 Field GP Window where data is located

Payers name, street address, city, state, and ZIP Code/Postal Code

Print 1099 window

Payers Federal Identification number Print 1099 window

Recipients name, address, and Zip Code/Postal Code Primary Address of the Vendor Maintenance window

Recipients identification number Tax ID field of the Vendor Maintenance Options window

Amounts for boxes 1-9 on the Dividend Form or 1-16 on the Miscellaneous Form

1099 Amount field in the 1099 Details window

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7. MAKE A BACKUP THAT IS NAMED "PRE YEAR-END" Create a backup, and then put the backup in safe, permanent storage.

8. CLOSE THE YEAR (Purchasing – Routines – Year-End Close) 1. If you are closing both your fiscal and calendar year at the same time, click All. If you are just closing your

calendar year, click Calendar. If you are just closing your fiscal year, click Fiscal.

2. Click to select the Print Report check box, and then click Close Year. Note We recommend that you keep a paper copy and/or file of the year-end report together with your permanent year-end audit records.

9. CLOSE THE FISCAL PERIODS (OPTIONAL) (Administration – Company – Fiscal Periods) You can use the Fiscal Periods Setup window to close any fiscal periods that are still open for the year. This prevents users from accidentally posting transactions to the wrong period or year. Verify that you have posted all transactions for the period and the year for all modules before closing fiscal periods. If you must later post transactions to a fiscal period that you have already closed, you can return to the Fiscal Periods Setup window to reopen the period before you can post a transaction. Click to select the Purchasing check box for the Period that you must close.

10. MAKE A BACKUP THAT IS NAMED "POST YEAR-END" Create a backup, and then put the backup in safe, permanent storage. A backup gives you a permanent record of the company's financial position at the end of the year, and this backup can be restored later if it is required. A backup lets you recover data quickly if a power fluctuation or other problem occurs during the year-end closing procedure.

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11. FREQUENTLY ASKED QUESTIONS (FAQS) Q1: Are inactive vendor records cleared during year-end closing? If not, how are inactive vendor records removed? A1: No, inactive vendor records are not automatically removed. To remove an inactive vendor record, the following conditions must be true:

o No current year 1099 amounts exist for the vendor. o The vendor has no documents in work or history. o Once the records have been removed from history, a vendor or vendors can be deleted using the Vendor

Maintenance or Mass Vendor Delete windows. Note: You will not be able to view Transactions for vendor anymore. Q2: What should I do if I need to issue a check on January 2 of the next year but I am not ready to close the current year? A2: Print the checks, but post them after you process your year-end closing. If you must post the checks immediately, change the Amount Paid fields in the Amounts Since Last Close view of the Vendor Yearly Summary window (Purchasing – Cards – Summary – Yearly) or use the view Fiscal Year or Calendar Year to calculate the correct information. Q3: A vendor wasn’t marked as a 1099 vendor and they should have been marked as 1099. How do I issue a 1099 for this vendor? A3: First mark the vendor as a 1099 vendor (Cards – Purchasing – Vendor – Options). Once you have identified the correct amount for the calendar year's 1099 report, edit the 1099 amount using one of the methods mentioned in the Edit 1099 Information section above. Q4: I need to submit 1099’s via magnetic media, can this be done? A4: GP does not handle magnetic media filing of 1099s. The following GP Partner does offer compatible State W-2 and 1099 magnetic media products. For more information, OTT can assist you with contacting Greenshades Accounting Software, Inc. www.greenshades.com Q5: What if the 1099's cannot be printed before the year-end close? A5: In the Print 1099 window, you have the ability to enter the 1099 Year you wish to print. Q6: I've printed 1099 statements and some of the statements didn't have the vendor name appearing on them. What should I do? A6: When printing 1099 statements, the Check Name entered for the vendor record in the Vendor Maintenance window will appear on the statement. If there isn't a vendor name appearing on the statement, the Check Name field in this window is blank. Enter a Check Name for each vendor or use the Report Writer to change the report to use a different field. For more information about modifying reports, contact OTT for assistance. Q7: What does the Payables Management year end close process do? A7: The yearend close does the following: Calendar year close: The calendar year-end process in Microsoft Dynamics GP will clear the 1099 Amount Year to Date field and then transfer the amount to the 1099 Amount Last Year field for the Amounts Since Last Close view of the Vendor Yearly Summary window. Fiscal year close: The fiscal year-end process in Microsoft Dynamics GP will clear the following fields:

o Amount Billed YTD o Amount Paid YTD o Average Days To Pay – Year o Discount Available YTD

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o Discount Lost YTD o Discount Taken YTD o Finance Charge YTD o Number of Finance Charges YTD o Number of Invoice YTD o Number of Paid Invoice YTD o Returns YTD o Trade Discounts Taken YTD o Withholding YTD o Write Offs YTD

The amounts in these fields will also be updated in the Amounts Since Last Close view of the Vendor Yearly Summary window:

o Amount Billed LYR o Amount Paid LYR o Discount Available LYR o Discount Lost LYR o Discount Taken LYR o Finance Charge LYR o Number of Finance Charges LYR o Number of Invoice LYR o Returns LYR o Trade Discounts Taken LYR o Withholding LYR o Write Offs LYR

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FIXED ASSET MANAGEMENT Since Fixed Assets is not a date sensitive module, close Payables Management first. This should be performed to ensure all transactions coming from Payables have been capitalized in the Fixed Assets system. Also, close Fixed Assets prior to performing the General Ledger year-end close. The year-end routine can be run at a separate time for each fixed asset book or it can be run for all books at the same time. However, this routine must be completed before running any fixed assets processing for the new fiscal year.

1. PERFORM ALL THE YEAR-END CLOSING PROCEDURES FOR PAYABLES MANAGEMENT Close Payables Management first. This action guarantees that all the outstanding fixed asset transactions originating in payables or purchase order processing are capitalized. For instruction on the Payable Management year end close in this document.

2. ENTER ALL THE FIXED ASSET TRANSACTIONS FOR THE CURRENT FISCAL YEAR Post all the additions, the changes, the transfers, and the retirements for the current fiscal year. Note: Transfers and undo retirement transactions should never be performed in a historical year.

3. DEPRECIATE ALL ASSETS THROUGH THE LAST DAY OF THE CURRENT FISCAL YEAR (Financial – Routines – Fixed Assets – Depreciate)

1. In the Depreciation Target Date box, type the last date of the current fiscal year. 2. Insert book(s) and click Depreciate

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4. PERFORM THE GL POSTING (GL INTERFACE) PROCESS (Financial – Routines – Fixed Assets – GL Posting)

1. In the Transaction Date box, type the last date of the current fiscal year. 2. In the Beginning Period box, type YYYY-PPP (Current Year – 12 Period) 3. In the Ending Period box, type YYYY-PPP (Current Year – 12 Period). 4. GP 2013 or later click insert and Process. Review activity then Post. 5. In the Report Destination window, click to select the appropriate check box, and then click OK.

Note: You may want to keep this report as part of the year-end financial records.

5. RUN ANY YEAR-END REPORTS THAT YOU WANT TO KEEP FOR YEAR-END 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. There are several reports available for fixed assets. We recommend that you print the following reports:

o Annual Activity (Reports–Fixed Assets–Activity–Annual Activity) o Additions (Reports–Fixed Assets–Transaction–Additions) o Retirements (Reports–Fixed Assets–Transaction–Retirements) o Transfers (Reports–Fixed Assets–Transaction–Transfers) o Depreciation Ledger (Reports–Fixed Assets–Depreciation–Depreciation Ledger) o Property Ledger (Reports–Fixed Assets–Inventory–Property Ledger) o Fixed Assets to General Ledger Reconciliation (Reports–Fixed Assets–Activity– Fixed Assets to General

Ledger Reconciliation) The Book to Book Reconciliation and Book to Book YTD Depreciation Comparison reports are also available for comparing any two fixed assets books.

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6. GUARANTEE THAT THE FIXED ASSETS CALENDAR IS BUILT CORRECTLY (OPTIONAL) (Financial – Setup – Fixed Assets – Calendar)

Select calendar and click Verify.

Print report to screen. If the report looks like this, the calendar is OK.

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7. VERIFY THAT THE QUARTERS ARE SET UP CORRECTLY FOR ALL THE FISCAL YEARS (Financial – Setup – Fixed Assets – Calendar – Quarters)

Make sure that the following boxes are not empty: o Start Date o End Date o Mid Date

Note: These boxes must exist for each quarter. If any box is empty, type the appropriate date in that box.

8. CREATE A BACKUP Make a backup of all company data. This is important to ensure that you'll be able to recover quickly should a power fluctuation or other problem occur during the year-end closing procedure.

9. PERFORM THE FIXED ASSETS YEAR-END CLOSING ROUTINE (Financial – Routines – Fixed Assets – Year End)

1. Verify that the fiscal year that is displayed for each book is the current fiscal year. (The current fiscal year is the year that you are closing.)

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2. Click a book that you want to close, and then click Insert. Repeat this step until all the books that you

want to close have been inserted. Note: GP performs the following procedures during the year-end closing routine: o In the Asset General Information window, the Quantity field is copied to the Begin Quantity field of

the Expand Quantity window. o In the Expand Last Maintenance window, the YTD Maintenance amount is cleared. o In the Asset Book window, the YTD Depreciation Amount is cleared. o The following procedures are performed:

• 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.

o In the Book Setup window, the Current Fiscal Year field is increased by one. Note: A report is not generated during the fixed assets year-end closing routine.

10. FIXED ASSETS FREQUENTLY ASKED QUESTIONS (FAQ) Q1: I have closed General Ledger in Microsoft Dynamics GP, and I now realize that I have not yet closed Fixed Asset Management. Can I perform the fixed assets year-end closing routine at this point? A1: We recommend that you close General Ledger last, after all the subsidiary modules have been closed. However, Fixed Asset Management can be closed after General Ledger is closed. The GL Posting (GL Interface) process can be performed, and then the transaction or transactions can be posted to the closed year or to the historical year in the general ledger. For more information about the GL Posting (GL Interface) process, see step 4 in the "Year-end checklist" section. To post transactions to the historical year in the general ledger, make sure that the following options are selected in the General Ledger Setup window:

o Allow Posting to History o Maintain History Accounts o Maintain History Transactions

Q2: I ran the year-end routine in Fixed Asset Management, and then I ran depreciation in the next year. I see that the depreciation is highly overstated and that some assets have a negative number in the "Net Book Value" field. Why is the system calculating so much depreciation? A2: This problem occurs if the following conditions are true:

o The year was closed. o The assets were not depreciated through the last day of the fiscal year.

Consider the following example:

o The fiscal year is a calendar year (January 1 through December 31). o The assets were depreciated through December 28 when the year was closed.

In this example, depreciation will be incorrect the next time that depreciation is run. The system does not recalculate the yearly rate when the year-end closing routine is performed. Therefore, fixed assets take a full year of depreciation in the last few days that remain in the previous year (December 29 through December 31). The rate of depreciation is the yearly rate currently on each asset.

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Additionally, if there are assets that are near the end of their original life, the Net Book Value field may become negative. There are two workarounds for this problem:

o Recommended workaround Restore the data from a backup, run depreciation through the last day of the year, and then perform the year-end closing procedures.

o Alternative workaround Reset life on all the assets.

Note: If amounts on the assets have ever been entered for the YTD Depreciation field or for the LTD Depreciation field, resetting life on the assets will change these amounts, and the result may be different. If you change the YTD Depreciation field or the LTD Depreciation field by resetting life on the asset, you will cause inconsistencies between Fixed Asset Management and General Ledger. These inconsistencies must be explained. Q3: Instead of completing the year-end routine for Fixed Asset Management, I manually changed the "Current Fiscal Year" field in the Book Setup window to the next year. Do I have to go back and run the year-end closing routine, or can I continue to process activity in Fixed Asset Management for the next year? A3: If no activity, such as additions, changes, transfers, retirements, or depreciation, has been run for the next year, the Current Fiscal Year field in the Book Setup window can be changed back to the previous year, and then the year-end closing routine can be processed. GP2013 and later you will not be able to change the year manually. If any activity, such as additions, changes, transfers, retirements, or depreciation, has been run for the next year, restore the data from a backup, and then continue with the year-end closing routine. In either situation, the year-end closing routine must be run. If the year-end closing routine is not completed, the amount in the YTD Depreciation field will be overstated on any report that includes assets that were retired or that were fully depreciated in the previous year. If the year-end closing routine is not performed, the amounts in the YTD Depreciation field will not be cleared. The amounts in the YTD Depreciation field will not be zeroed out. Therefore, these amounts will be incorrectly included in the reports for the next year.

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GENERAL LEDGER Use the procedures as described in this section to close the year for the General Ledger. Please note that the General Ledger does not require the year end closing routine to be completed immediately at year end. The General Ledger is date sensitive and will allow you to post transactions to multiple open years in the General Ledger. We do recommend that you close the year as soon as you have the majority of entries posted to the General Ledger, since the process will roll forward the beginning balances for your balance sheet accounts.

1. COMPLETE POSTING PROCEDURES AND THE CLOSING PROCEDURES FOR OTHER MODULES Note: If General Ledger is not integrated with other modules, you can skip this step.

o Post final transactions in all modules except General Ledger. o Complete the month-end and quarter-end procedures for all modules except General Ledger. o Complete year-end closing procedures for each module in the following order:

• Sales Order Processing

• Purchase Order Processing

• Inventory

• Receivables Management

• Payables Management

• Fixed Asset Management

• General Ledger Payroll year-end procedures are independent of those in other modules and are always performed at the calendar year-end.

2. POST FINAL ADJUSTING ENTRIES IN GENERAL LEDGER (Financial – Transactions – Series Post)

Adjusting entries include all entries that correct errors made in recording transactions and journal entries used to assign revenues or expenses to the period in which they were earned or incurred. If you have to track initial adjusting entries or post audit entries separate from other fiscal periods, auditing periods can be set up in General Ledger. This feature enables separate tracking of the adjusting entries that are made after the year is closed. The Second Closing Period feature in General Ledger allows you to have a second closing period with the same From/To date as the last day of the first closing period. This can allow you to enter initial adjusting entries in the first closing period, and post-audit entries in the second closing period 13. This allows for separate tracking of the adjusting entries made after the year is closed.

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3. ACCOUNT POSTING TYPE REVIEW The posting type determines whether an account is closed to the retained earnings account or whether an account brings a balance forward to the next fiscal year. If the account balance will be brought forward at the end of the year, the posting type must be set to Balance Sheet. If the account balance will be closed to a retained earnings account at the end of the year, the posting type must be set to Profit and Loss. Use Smart List [Accounts] to review the posting type and easily correct Balance Sheet: Create a smart list to print Main Account Segment “is less than” your first Revenue account. Sort the list by Posting Type. If you see Profit and Loss, double click on account to open the Account Maintenance window and change to the correct posting type.

Profit & Loss: Create a smart list to print Main Account Segment “is greater than” your last Equity account. Sort the list by Posting Type. If you see Balance Sheet, double click on account to open the Account Maintenance window and change to the correct posting type.

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4. PERFORM FILE MAINTENANCE (Microsoft Dynamics GP (from the Toolbar Menu) – Maintenance – Check Links) Check links should be run on all financial files. Before any file maintenance it is recommended to have a backup.

5. CHECK GENERAL LEDGER SETTINGS (Financial – Setup – General Ledger) If you want to keep historical records, make sure that Maintain History for Accounts and Transactions are marked in General Ledger Setup. Verify the Retained Earnings Account.

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6. MAKE A BACKUP Make a backup of all company data and place it in safe permanent storage. This gives you a permanent record of the company's financial position at the end of the year, and can be restored later, if necessary.

7. PRINT TRIAL BALANCE Use the Trial Balance Report window to print a year-end Summary Trial Balance. Financial – Reports – Trial Balance – Summary

8. PRINT FINAL FINANCIAL STATEMENTS Print any year-end financial statements required. The most common financial statements include:

o Balance Sheet o Profit and Loss Statement o Statement of Cash Flow o Statement of Retained Earnings

9. SET UP A NEW FISCAL YEAR (Administration – Setup – Company – Fiscal Periods) Before you can perform a year-end closing, a new fiscal year must be set up using the Fiscal Periods Setup window. Enter year - tab off field - Verify First & Last Days - click the Calculate.

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10. CLOSE THE YEAR (Financial – Routines – Year-End Closing) GP2013 R2 or later has a button “Reverse Historical year” which will reopen the closed year. To close any year that was reopened will need to run the close process again.

o Retained Earnings Account: Using the Year-End Closing window, select the Retained Earnings account to

which the year's profit or loss will be closed. The default account is the one you entered in the General Ledger Setup window when you set up the module. All current-year earnings or losses will be transferred to the account you specify here. If you want to distribute the retained earnings for the year to more than one account, you can enter an allocation account to distribute the retained earnings amount to the appropriate accounts. For example, you could set up an allocation account to divide the earnings between several departments in your business. You could transfer the year's profit or loss to accounts that contain a specific account segment. This is referred to as a divisional retained earnings closing. See the Question and Answer section below for an example of closing to divisional retained earnings.

o Starting Journal Entry Number: Using the Year-End Closing window, enter the starting journal entry

number that will be used as the first journal entry number in the next fiscal year. You can either accept the default, which is one more than the highest posted journal entry number for the current year, or enter a new number. The journal entry number you select will be used as the journal entry number for the Year-End Closing Report.

o Close Year: Click the Close Year button in the Year-End Closing window to begin the closing process.

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Note: Click close Year only one time. If you click more than one time, you will close more than one year during the process. Also, if the progress window seems to hang at 50%, don't reboot. If you are in doubt if the system is still processing, you will need to check the server for active files. Closing the year transfers all current-year information for each account in the chart of accounts to account and transaction history (if you're keeping history records) and prepares the accounting system for a new fiscal year. In addition to transferring current-year figures to transaction and account history, the year-end closing process will:

• Reconcile and summarize the General Ledger balances that have accumulated throughout the year.

• Removes accounts that are marked as inactive if the accounts match the criteria for deleting a posting account.

• Inactive accounts that have been set up as budget accounts can also be deleted if they have no activity for the year. These accounts can be deleted even if budget amounts from past years are associated with these accounts (GP2013 R2 or later has a box “Maintain Inactive Accounts”).

• Transfer current-year profit and loss amounts to the Retained Earnings account.

• Zeros all profit and loss account balances after they've been closed to the Retained Earnings account.

• Brings all balance sheet accounts balances forward to next year.

• Prints the Year-End Closing Report. When closing is complete, the Year-End Closing Report will be printed. This report lists the accounts that have been closed and the transactions created to close them. The Year-End Closing Report is part of the audit trail and should be saved with your company's permanent records. The Year-End Closing Report cannot be reprinted.

11. CLOSE ALL FISCAL PERIODS FOR ALL SERIES (OPTIONAL) (Administration – Setup – Company – Fiscal Periods) Once you've completed closing procedures for all modules, use the Fiscal Periods Setup window to mark all periods for all series as closed. This will prevent transactions from being posted from any module to any period in the year you closed if you are allowing posting to history. Once a period has been marked as closed, transactions no longer can be posted to it unless it is reopened. If you later find you need to post a transaction to a closed period, return to the Fiscal Periods Setup window to reopen the period.

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12. PRINT A SUMMARY TRIAL BALANCE FOR THE CURRENT YEAR AND VERIFY (Financial – Reports – Trial Balance – Summary – Option) You will want to verify the following items:

o The beginning balance is correct for all balance sheet accounts. This should equal the ending balance from last year (except for retained earnings).

o The beginning balance for all profit and loss accounts should be zero. o Check the retained earnings account(s). o The beginning balance total at the end of the report should be zero.

If there are any discrepancies, corrective action may be needed.

13. ADJUST THE BUDGET NUMBERS FOR THE NEXT YEAR Adjust the budget numbers by using one of the following methods: Excel-Based Budgeting, Budget Maintenance (Financial – Cards – Budget) or Single-Account Budget Maintenance (Financial – Cards – Account – Budget)

14. MAKE A BACKUP Make a backup of all company data. The backup gives you a permanent record of the company's financial position at the start of next year. This backup can be restored later to a test company if needed.

15. GENERAL LEDGER YEAR END Q & A’S Q1: Do I have to close the fiscal year before the first day of the next fiscal year? A1: The year-end closing routine does not have to be completed before you start the next fiscal year. However, we recommend that you close the year as soon as possible. For more information about how to print a balance sheet if you have two open years, click the following article number to view the article in the Microsoft Knowledge Base: https://mbs2.microsoft.com/Knowledgebase/kbdisplay.aspx?wtntzsmnwukntmmyvtquuxnnzoukypppvspwpnuqwrpmvqtv or look for Article 866371 in Customer Source. Q2: After Year End close I noticed that a Profit and Loss account was incorrectly set up as a Balance Sheet

account. How should this be fixed?

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A2: If someone has an account that is supposed to be setup as a Profit and Loss account but was mistakenly setup as a Balance Sheet account, the Profit and Loss account will have a beginning balance brought forward. To correct these situations use the following steps:

1. Make a backup. 2. Verify the account(s) is still set to the INCORRECT Posting Type. 3. If Multicurrency is registered, go to Multicurrency Setup (Setup - Financial – Multicurrency) and unmark Maintain History for General Ledger Accounts. If Multicurrency is not registered, runs this statement against the company database: Update MC40000 set MNSUMHST=0 4. Go to Setup – Financial – General Ledger and unmark Maintain History for Accounts and Transactions. In this same window, be sure Allow Posting to History is marked. Choose OK to save the changes. 6. Go to Transactions – Financial – General and enter the appropriate journal entry. Be sure the transaction date is in the closed year so that the entry goes into history.

If the profit and loss account has a debit beginning balance after the year-end close, you would make an entry similar to the one below:

Retained Earnings Debit Profit and Loss Account Credit Enter one transaction for each account with an incorrect posting type. 7. Post this entry. The posted transaction(s) will only affect the current year because we have turned off the maintaining history options. It will post a beginning balance transaction into the next year so the accounts will now have the correct balances. 8. Go to Setup – Financial – General Ledger and remark Maintain History for Accounts and Transactions. 9. In this same window, be sure that Allow Posting to History is set correctly. Choose OK to save the changes. 10. If Multicurrency IS a registered module, go to Multicurrency Setup (Setup - Financial - Multicurrency) and remark to Maintain History for General Ledger Account. If Multicurrency is not registered, run this statement against the company database: Update MC40000 set MNSUMHST=1 11. Go to Cards – Financial – Account and bring up the account(s) with the incorrect Posting Type and change the posting type to the correct one.

Q3: After Year End close I noticed that a Balance Sheet account was incorrectly set up as a Profit and Loss

account. How should this be fixed? A3: If someone has a Balance Sheet account setup as a Profit and Loss account, the Balance Sheet account will have a beginning balance of ZERO after the Year-End close. To correct this situation use the following steps:

1. Make a backup. 2. Verify the account(s) is set to the CORRECT Posting Type using the Account Maintenance window. 3. If Multicurrency is registered, go to Multicurrency Setup (Setup - Financial – Multicurrency) and unmark Maintain History for General Ledger Accounts. If Multicurrency is not registered, runs this statement against the company database: Update MC40000 set MNSUMHST=0 4. Go to Setup – Financial – General Ledger and unmark Maintain History for Accounts and Transactions. 5. In this same window, be sure Allow Posting to History is marked. Choose OK to save the changes. 6. Go to Setup – Company – Fiscal Periods and make sure the fiscal period is open. 7. Go to Transactions–Financial–General and enter the appropriate journal entry. Be sure the transaction date is in the closed year so that the entry will update beginning balances.

If the balance sheet account should have a debit beginning balance, you would make an entry similar to the one below.

Balance Sheet Account Debit Retained Earnings Credit Enter one transaction for each account that had an incorrect posting type. 8. Post the transaction(s). The posted transaction(s) will only affect the current year because you've turned off the maintaining history options. It will post a beginning balance transaction in the next year so the accounts will have the correct balances.

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9. Go to Setup – Financial – General Ledger and mark Maintain History for Accounts and Transactions. In this same window, be sure that Allow Posting to History is unmarked. Choose OK to save your changes. 10. If Multicurrency is a registered module, go to Setup - Financial - Multicurrency and remark to Maintain History for General Ledger Account. If Multicurrency is not registered, run this statement against the company database: Update MC40000 set MNSUMHST=1

Q4: I have these retained earnings accounts set up in my chart of accounts: 100-3300-00 Retained Earnings Division 100 200-3300-00 Retained Earnings-Division 200 300-3300-00 Retained Earnings-Division 300

The segment I am closing on is the division (first segment). Where will the accounts with a 400 division close into, i.e. 400-4100-00 Sales-division 400?

A4: Before performing the year-end close, the system will verify that all retained earnings accounts that are needed exist. If a 400 divisional retained earnings account isn't found, the yearend closing won't proceed. An error will occur, and then you'll have to set up the needed account.

Q5: What happens to unit accounts during a year-end closing? A5: GP2013 or later, unit accounts have a box “Clear Balance During Year-End Close”. When the year is closed

• If this box is marked, the beginning balance will be zero for the following year.

• If this box is not marked, a balance is brought forward for the following year.

Q6: I performed the year-end closing procedure, and beginning balances were brought forward for some of

my sales and expense accounts. Why did this happen, and what can I do to correct this? A6: In the Account Maintenance window, verify the selection made for Posting Type. Sales and expense

accounts need to have Profit and Loss selected on this line. To make corrections now, restore a backup,

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change the selection in this window, and close the year again or see the General Ledger Tips section for instructions to correct this after the close has been run.

Q7: I am getting ready to close my year in General Ledger. Must everyone exit Great Plains before this

routine is performed? A7: We recommend that users at other client computers do NOT continue to work in Great Plains during the

year-end closing procedure. The reason is that if a backup needs to be restored it’s the entire company database; therefore, transactions would need to be reentered.

Q8: When I attempt to post a batch in General Ledger, the message "Batches cannot be posted while the year-

end close is in progress" appears. The year-end closing is not being run in General Ledger. What should I do?

A8: Run this statement in SQL Management Studio against the DYNAMICS database: Delete SY00800 Q9: The following alert message appears when I attempt to close the year in General Ledger: "Sorry, another

user is closing the year." No one else is closing the year. What should I do? A9: Run this statement in SQL Management Studio against the company database: Delete GL50100 Q10: I started the Year-end Close process in General Ledger and a warning message appears. It says "A single-

use batch or quick journal transaction has not been posted yet. Do you wish to continue closing?" Is there something wrong?

A10: This message appears if you have unposted batches in General Ledger. If the batches need to be posted before closing the year-end, choose Cancel. If the batches do not need to be posted before closing the year, choose Continue.

Q11: I am performing the Year-end Close in General Ledger and it appears to be hanging at 50%. It looks like

my workstation has locked up. What should I do? A11: If your Year to Date Transaction Open file is large, it may take a while for the Year-end Close procedure to

complete. If your hard drive is still processing, it is not locked up and you should leave it running. If your hard drive is not processing you should restore a backup, do File Maintenance on all files in the financial series and start the Year-end Close again.

Q12: If an adjustment is posted to a closed year, can I print a corrected Trial Balance for that year? A15: Yes, set up a new Report Option for the Trial Balance, change the Year to History and choose the closed

year. This historical trial balance will include any adjustments posted to the closed year. Q12: I have completed year end closing and now I need to post an entry to the closed year. Can I post and enter to a prior year? A16: Adjusting entries that need to be made after the close of the year can be made and posted to the most

recent closed year.

• Make sure Allow Posting to History is marked in General Ledger Setup (Financial – Setup)

• Make sure Financial Period is unmarked in the Fiscal Periods Setup (Administration – Setup – Company) If an entry is posted to the closed year, a second entry will be made at that time to update the beginning

balances that were set up for the New Year during the year-end close. The following is an example of posting an adjusting entry after closing the fiscal year. Example of journal entry entered:

Date Account Debit Credit 12.25.16 Admin. Expenses $500

Cash $500

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Example of posting journal results:

Date Account Debit Credit

12.25.16 Admin. Expenses $500

Cash $500

12.31.16 Retained Earnings $500

Cash $500