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Deb Sletmoen, Implementation Specialists

Tips for year-end closing of AR, AP and GL in Dynamics GP


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    Recently we did a webinar on tips for year-end closing of AR, AP and GL in Dynamics GP that attendees found very useful so I wanted to share the information and recording with you in case it helps with your year-end close.

    General tips for all year-end closings, using the year 2016 as an example:

    • Always do a data backup before doing the year-end processing for any of the modules.
    • Safeguard your year-end backups so they don’t get deleted in your normal cleanup routines.
    • Setup the New Fiscal Period - remember to soft close the periods until you are ready to use them.
    • Be ready for close: Think timing, schedules and process.  When will we be ready to close?
    • Payroll always has its own close routine. Take that as a separate course of action.
    • If you don’t use a module no need to close it.
    • If you are using Fixed Assets please note that we have a separate webinar for that module.

    AR close tips:

    • Hold any transactions for 2017 in a batch until 2016 is closed. Invoices still can be printed and dated in 2017.
    • Select the “fiscal”, “calendar” or “both” when going into year-end close, and make sure to set your system date back to December 31, 2016.   The date on your system will be the date marked for date of close.
    • If “Print Report” is chosen, remember that a half page or more could be printed per customer so consider creating a PDF instead unless a hard copy is needed.
    • Run a test in your test company- compare both before and after.
    • Don’t forget to use your routine “Financial Reconcile to GL” to reconcile all of your sub ledgers.

    AP close tips:

    • Run a smartlist for current year-to-date and compare with information on the Vendor Summary. Make sure you know where the values on the smartlist are coming from.   Smartlist is pulling from Amounts Since Last Close so numbers may not be correct as the AP module is not closing-date sensitive.
    • Make sure to set your system date back to December 31, 2016 if you would like your data marked on the window as closed in 2016.
    • Remember to “Process Later” on your check batches so they will not update “Amounts Since Last Close” until you are ready to close.
    • If you need to add invoices consider doing checks on the fly and again holding the batch until after close.
    • Unlike the pop-up warning that exists in AR, there is no warning when hitting “close year” in Payables. It automatically starts the year-end processing as soon as you hit “close year”. End users can easily lose Last Year Data by accidentally closing twice.
    • Edit 1099 transaction information to adjust vendors or individual transactions where needed.

    GL close tips:

    • Make a backup and be careful as SQL backups can take a lot of disc space to store the historical data.  And again safeguard those backups in a place where your cleanup routines will not wipe them out.
    • Don’t ignore error messages or warnings. The error message might be that a single-use batch or quick journal entry is unposted which might be OK if it is for 2017.  Your partner will need the messages if assistance is required.  Error messages are important to resolve right away, otherwise you could multiply a problem in the year-end close process.
    • In the Year End Close window pay attention to your inactive accounts before making a selection to remove them.
    • Remember to verify that each of your accounts are set to the correct posting type.
    • GL must be OPEN for December of 2016 and January of 2017 before beginning the close process.
    • Make sure that if you close to divisional retained earnings and you have added a new segment that you also have a retained earnings account for that segment.
    • Don’t stop the close process even if it appears that your system isn’t responding. A lot of the close process is happening behind the scenes which might make it appear that nothing is happening.
    • Halt all posting to the ledger until the close process is done.
    • The year-end close for 2016 will prevent any entries for 2015. Historical entries can only be made to one historical year which becomes 2016 as soon as the year-end close is done.
    • The “Reverse Historical Year” should only be used with assistance and when absolutely necessary.
    • Review the Year End Report and make sure that it ties to your P&L. If an account is marked incorrectly follow the steps to make the fix and don’t try to shortcut it.

    To watch the recording of the webinar that details the closing tips within GP, please click here.

    With these year-end processes and all items related to GP please remember that your partner is available to help.  Whether you forgot to close Payables timely, or you ran out of disk space and now have to start your Year End over, get the experts involved where you need them.  There are not many things we haven’t seen when it comes to closing and we really try to simplify the process and to avoid the headaches that can happen.  If you need any assistance in closing your year-end for AR, AP or GL, please give us a call at 218-486-5095 or send an email to [email protected].  Thank you.

     

    By Deb Sletmoen, MCT, year-end close specialist, and payroll expert at Implementation Specialists, a  Microsoft Dynamics GP Gold Partner with Advanced ERP Competency and Source Code Provider

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