Month-End and Year-End Close

ProceduresTracey WrightGraham O’Bray

Agenda

•Month End Procedures• Master Posting• Receivables procedures• Reconciling subledgers to GL• Close fiscal periods (optional)

•Year End Procedures• Inventory Control• Receivables Management /Payables Management• Fixed Assets• General Ledger/ Analytical Accounting• Canadian Payroll

Master Posting

•Tools > Routines > Master Posting• View all open batches originating from any module

•Post all batches for the month•Ensure all entries are posted through the GL

Receivables Month End

•Aging• Unlike payables, receivables is aged only when the process runs

• Affects the aging buckets on the trial balance• Can be automated on the server by a system admin

•Paid Transaction Removal• Moves fully applied documents to History• History documents do not show on statements

•Customer Statements

Reconciling subledgers to the

GLNeed to compare subledger reports to the GL for:

• Accounts Receivable / Accounts Payable• Bank• Inventory• Accrued Purchases

Why do we do this?• Need to prove the amounts on your balance sheet!

Reconciling subledgers to the

GLWhy would the subledgers go out of balance?

• Direct entries to the control accounts• Unposted GL entries that originated in a subledger

• Deleting/voiding GL entries that were posted in the subledger

• Manually closing purchase orders

Reconciling Receivables to GL

Do I balance today?• Receivables Summary Inquiry• GL Summary Inquiry

Reconciling Receivables to GL

•Did I balance at month end?• Receivables Historical Aged Trial Balance report• GL Summary Inquiry / GL Trial Balance Summary report

Reconciling Receivables to GL

Reconciling Payables to GL

•Same as receivables •Compare Payables Summary Inquiry to GL Summary Inquiry

•Compare Payables Historical Aged Trial Balance to GL Trial Balance

Reconciling Bank to the GL

•Compare the adjusted book balance on the bank reconciliation to the GL

• Bank reconciliation posting journal• GL Summary Inquiry or GL Trial Balance report

• If you use Multicurrency, be sure to compare the Functional (Canadian) currency.

Reconciling Bank to GL

Reconciling Accrued Purchases to GL

•Point in time (current) reconciliation•Compare:

• Received Not Invoiced report• GL Summary Inquiry or GL Trial Balance report

Reconcile Inventory to GL

Compare:•Stock Status (print right at month end) or the Historical Inventory Trial Balance

• The Historical Stock Status is not intended to match the GL

•GL Summary Inquiry or GL Trial Balance for the Inventory account

Close Fiscal Periods

•Tools > Setup > Company > Fiscal Periods

•Soft close to prevent users from posting to that period

•Can be reopened at any time•Can choose which modules to close

Year End Closing

•Close in this order:• Inventory Control• Receivables Management /Payables Management• Fixed Assets• General Ledger/ Analytical Accounting

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

Inventory Control Year End

Inventory Year End

•What does the year end close process do and/or affect?

• Transfers all summarized current-year Quantity, Cost and Sales amounts to last-year 

• Updates each Item’s Beginning Quantity from the Quantity on Hand at each site (turnover report)

• Zeros the Quantity Sold field in the Item Quantities Maintenance (Cards - Inventory – Quantities/Sites) for each Site

• Gives you the option to: Remove Discontinued Items, Remove Sold Receipts, Remove Sold Lot Attributes, and Update Item’s Standard Cost

Inventory Year End•What steps should I take to close the year? 1. Enter and post all Purchase Order

Processing, Invoicing/Sales Order Processing, and Inventory transactions for the current year

2. Reconcile SOP, POP and then Inventory • Tools > Utilities > Sales > Reconcile – Remove Sales

Documents• Tools > Utilities > Purchasing > Reconcile Purchasing

Documents• Tools > Utilities > Inventory > Reconcile• Reconcile must be done when no one in Sales, Purchasing

or Inventory windows

Receivables Management

Year End•What does the year end close process affect?

• Customer Finance Charge Summary• The Calendar Year end close clears the Calendar Year-to-

Date Finance Charges and moves them to the Last Year Calendar field in Customer Finance Charge Summary (Cards – Sales – Summary – Finance Charges)

• The Fiscal Year end close transfers all amounts other than the Calendar YTD Finance Charge amount to the Last Year column in Customer Summary using the Amounts Since Last Closed View (Cards – Sales – Summary)

• Smartlist YTD and LYR fields

Receivables Year End

Receivables Management

Year End•What steps should I take to close the year?

• Post all transactions for the current year• Make sure all transactions for the new year are saved, not posted

• Tools > Routines > Sales > Year-End Close

Payables Management Year End

What does the Year End Close Process do?

• In the Vendor Yearly Summary Window:• Calendar close- transfers the 1099 Amounts from Year to Date Column

to Last Year column ONLY in the Amounts Since Last Close view

• Fiscal close – transfers all other amounts from the Year to Date column to the Last Year column ONLY in the Amounts Since Last Close view

• This window can be viewed as Fiscal or Calendar Year

• Smartlist YTD and LYR fields

.

Payables Management Year End

What steps should I take to close the year?

• Post all transactions for the current year• Make sure transactions for the new year are saved, not posted

• Tools > Routines >Purchasing > Year-End Close

Fixed Assets Year End

When should the Year End Close be done?

• Fixed Assets Year End Close should be processed after Payables Management is closed, and before closing the General Ledger

• Each book can be closed separately, but ALL books must be closed before you can do any processing in Fixed Assets for the new year

Fixed Assets Year End

•What does the Year End Close process do?

• In the Asset General Information Window (Cards >> Fixed Assets >> General):

• The YTD Maintenance amount is cleared from the Expand last Maintenance Date Window

• The Quantity is copied to the Begin Quantity field in the Expand Quantity Window

• In the Asset Book Window (Cards >> Fixed Assets >> Book):

• The YTD Depreciation Amount is cleared• Cost Basis is copied to Begin Year Cost field• Life to Date Depreciation is copied to Begin Reserve field• Salvage Value is copied to Begin Salvage field

Fixed Assets Year End Close

•What does the Year End Close process do?(continued)

• In the Book Setup Window (Microsoft Dynamics GP >> Tools >> Setup >> Fixed Assets >> Book):

• The Current Fiscal Year is increased for each closed book

• Dynamics GP 2015 has Fixed Assets Year End report (Status report of all assets affected by the close)

What steps should I take to close the year?

• You must depreciate all assets through the last day of the current FA year before you close the year

• Print all the reports that you will need for the year you are closing (Especially important for GP 10.0 and GP 2010)

- Take a backup- Tools > Routines > Fixed Assets > Year-End

Fixed Assets Year End Close

Analytical Accounting Year

End CloseWhen should the year-end close be done?

• There is no separate year-end close process for AA. It automatically closes along with the GL year-end close, so any steps to check AA data should be done prior to closing the GL year.

• If your last year end close was version 10 or prior, please contact Prophet to run scripts prior to the year end close.

Analytical Accounting Year

End CloseWhat does the GL Year End Process do in AA?

• Automatically moves open year AA data to historical tables (AAG3000x AAG4000x)

• Update AA tables with Balance Brought Forward (BBF) entry to match BBF in GL

• Any dimensions marked to be included in Year End close will be consolidated and tied to BBF entry

Analytical Accounting

Year End

What are some important points to remember?

• AA automatically closes with General Ledger• Run through scripts in KB 2910626 if you suspect any data inconsistencies between AA and GL

• Make a backup • Make sure AA is installed and enabled on workstation where GL is being closed!

General Ledger Year End Close

When should the Year End Close be done?

• The General Ledger Year End Close should be done after you have completed the Year End close process for all other modules

• Other modules should be closed in the following order:

• Inventory• Receivables• Payables• Fixed Assets

What does the Year End Close process do?

• The year end close routine moves all open year transactions from the GL20000 table to the GL30000 table

• Creates balance brought forward (BBF) journal entries are created in the GL20000

• Removes inactive GL accounts without a balance/history.

• GP 2013/GP 2015 will also clear out Unit Accounts if marked

• The balances for all Balance Sheet accounts are rolled forward to the new year

• The beginning balance in the new year for BS accounts will be the same as the ending balance from the prior year you are closing

General Ledger Year End Close

General Ledger Year End Close

• What does the Year End Close process do? (Cont.)

• The Profit and Loss (P&L) accounts are rolled into Retained earnings account(s). P&L accounts have a zero balance at the beginning of the new year

• The Fiscal Period tables are updated to mark the year just closed as a historical year

• Automatically closes Analytical Accounting

• Year-end Close Report prints (cannot reprint)

General Ledger Year End Close

•What steps should I take to close the year?

• Make a backup!• Check hard drive space on server. GL20000 table will double in size during year end close.

• Check posting type on GL accounts in Smartlist

• In smartlist go to Financial > Accounts

• Tools > Routines > Financial > Year-End Close• Let run to completion, even if it appears to have stopped

• Take backup after year end close and keep in permanent records

•What are some important points to remember?

• Make a backup! Don’t bypass errors!• If any errors or issues – RESTORE TO BACKUP• Have all other users out of Dynamics GP when you perform the year end close

• Make sure that you have enough free space on the server to allow for the GL20000 table to double in size

• The year end close routine does appear to hang at 50%, but it is still processing, so let it run

• Print year end report to file and retain in permanent records

General Ledger Year End Close

General Ledger Year End Close

•What are some important points to remember? (Cont.)

• Microsoft Dynamics GP 2013:• Maintain inactive accounts in YEC window• Progress bar in YEC window• Option to clear balance per unit account

• Microsoft Dynamics GP 2013 R2:• Checkbox to “Reverse Historical Year” in YEC window so you

can un-do a year-end close

And you are done!

Canadian Payroll Year End

•Happens at the end of the calendar year. No closing needed at fiscal year if different.

•Canadian Payroll update must be installed prior to running payroll in the new year

•All prior service packs, hotfixes, compliance, and year end updates are included

•The update must be installed at all servers and workstations that have a Microsoft Dynamics GP installation otherwise a version error will occur

Canadian Payroll Year End

•Release Dates• 2014 Year End Update & 2015 Tax Update• Target Release 12/19

•Follow year end close steps in Canadian Payroll Update manual or in KB861806.

• Run year end close routines after the last 2014 payroll and before the first 2015 payroll

• Take a backup• Transfer all payroll amounts to last year• Update TD1 amounts• Print T4s

Questions

•Slide deck will be available at www.prophet.ca

• Password UserGroup2014

•Resource handout for year end close referencing the detailed TK articles from Microsoft available