The holiday season means pretty lights, putting together toys at 3:00 in the morning, and ugly red and green sweaters. It also means putting Microsoft Dynamics GP to bed in preparation for the New Year.
This crucial year-end close out is important for clearing the decks for 2017. The following processes should be extrapolated across every single Dynamics GP before you leave for that fun and festive New Years Eve party. More importantly, this process of closing out 2016 should be completed before you conduct any new 2017 business.
2016-Year End Close Out Process
The first rule of the closing procedure is that it be conducted in the following sequence:
- Receivables Management
- Payables Management
- Fixed Assets
- General Ledger
Let’s take these modules one at a time and review some key points.
First, Inventory close out transfers all current inventory summaries including quantities, costs and sales volume to the prior year. It updates with the 2017 beginning quantity by site. It also zeroes out the quantity sold fields and gives you the option to remove sold purchase receipts, update with new price points, or remove discontinued items.
Second, when closing Receivables Management you should finish posting all sales and transactions for the year. Then make a pre-closing backup. Close the year and potentially close the fiscal periods (optional). Finally, close the tax year and create a post-2016 closing backup.
Third, Payables Management close out starts with making sure all your transactions are posted. Print the Aged Trial Balance with Options report. Print the Vendor Period Analysis Report. Install the payroll year-end update (optional) and then back it up. Verify all 1099 info and print statements. Close the year and all fiscal reports and periods. Finally, close the tax year and back it up.
Fourth, close out Fixed Assets. Always run a backup before you begin closing procedures. Make sure you’ve posted all fixed asset transactions for the current fiscal year, including additions, changes, transfers and retirements. Next, depreciate all assets to December 31, 2016. If you don’t depreciated all the assets through the last day of the fiscal year before processing the year-end closing, the depreciation amounts will be incorrect. Print any remaining year-end reports. Create a backup. Complete the fixed assets year-end closing process.
Finally, run the year-end closing for the General Ledger. Again, this process is to be completed at the end of the four-module process. Next, make sure you’ve posted all relevant final entries into the General Ledger. Print an account list and verify the posting type by account. Close out the last period of the fiscal year. (This can be optional.) Double-check the General Ledger settings. Then run a backup. Print a detailed third balance report and the year-end financial statements. Set up the next fiscal year in the Fiscal Periods Setup window and then close the fiscal year.
If you have any questions about the year-end close out procedures on any of the modules, please don’t hesitate to contact our team. We appreciate your business and look forward to a bright and productive 2017 together!