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The Resource Group

Posting to a Closed Year in Microsoft Dynamics GP


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It is common practice to need to post a financial entry to a closed fiscal period, especially after an audit. Fortunately, the Microsoft Dynamics GP software accounts for this need and allows such transactions to take place, as long as the user has verified the following settings:

 

  • General Ledger Setup – On the Financial Page, go to Setup-Financial-General Ledger. In this General Ledger Setup window, make sure to checkmark to Allow Posting to History and click on OK.

 

Posting to a closed year in Microsoft Dynamics GP step 1

  • Fiscal Period Setup – On the Administration Page, go to Setup-Company-Fiscal Periods. In this Fiscal Periods Setup window, select the year the entry will be posting to and verify that the Financial period for that date is not marked and click on OK.

 

posting to a closed year in Microsoft Dynamics GP step 2

Once the settings above have been verified, the user can post an entry to the closed year. Microsoft Dynamics GP will recognize that the year being posted to is historical, and will automatically post a closing entry for the transaction. Therefore, the user needs to be sure to enter their transaction as if the year has not been closed (i.e., do not post the entry to Retained Earnings to account for the closed year). Microsoft Dynamics GP will post the transaction as entered, and then will appropriately close out the amounts to Retained Earnings or Beginning Balances per the Posting Type set up for the distribution accounts in the entry. As such, the user will receive posting journals for the two phases of the posting, so should not be alarmed to receive twice the normal posting journals.

 

One point to note regarding the posting of transactions to historical years is that Microsoft Dynamics GP only allows posting to the most recent historical year. For example, if the fiscal year 2013 has just been closed, the user can no longer post to 2012. If a situation arises where the user needs to post to a year prior to the most recent historical year, they can contact their Partner for assistance. Partners such as The Resource Group have written SQL scripts for their customers to be able to access years previously closed. It is important when using these scripts to follow the detailed instructions provided by the Partner, as they will include the making of backups and reconciling the financial data.

 

Users of Microsoft Dynamics GP can feel confident in closing out their financial year in a  timely manner, knowing that the capability exists to post the necessary adjustments at a later date. This allows for accurate financial reporting after year end without needing to manipulate the data to produce current beginning balances and Retained Earnings amounts.

 

Contact a Microsoft Partner like The Resource Group (www.resgroup.com/overview) for more information.

by The Resource Group

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