When it comes to Microsoft Dynamics GP year-end processes, people often ask me two questions:
- What does the year-end process actually do?
- In what order should I close the modules?
So, here is a handy checklist to help clarify and make the year-end process in Dynamics GP much easier for you! All the modules are listed in the recommended close order.
Checklist: Microsoft Dynamics GP Year-End
- The payroll year-end update is required prior to your first payroll run in January and prior to running the T4 process.
- The close process:
- Moves current year-to-date (YTD) amounts to history.
- Updates the tax credit index factors.
- Clears the values in the current year’s payroll file and resets them to zero.
- Close inventory for the current fiscal year prior to posting any transactions for the new year.
- The close process:
- Transfers all summarized current year quantities to the Last year field for those items where the summarized Sales History are maintained.
- Updates the beginning quantity from the quantity on-hand for each item.
- Zeros out the Quantity Sold field on the Item Quantity Maintenance card.
- Removes discontinued items, sold receipts, sold lot attributes, and updates the standard cost for each item.
Accounts Receivable (AR)
- The close process clears out the balance in the YTD fields and moves them to the Last Year field in all of the AR summary windows.
- The year-end close for AR is date-specific. Therefore, if you processed any transactions for the new year prior to running the process, they will move too.
Accounts Payable (AP)
- The close process clears out the balance in the YTD fields and moves them to the Last Year field in all of the AP summary windows.
- The year-end close for AP is date-specific. Therefore, if you processed any transactions for the new year prior to running the process, they will move too.
Project Accounting (Optional)
- The year-end close process for Project Accounting is optional as projects often span multiple years and typically do not align with fiscal or calendar years.
Fixed Assets (FA)
- As with other modules, FA closes prior to posting in the new fiscal year.
- All FA books must close prior to processing depreciation for the new fiscal year.
- The year-end close process:
- Updates the YTD maintenance amount on the Asset General screen.
- Copies the quantity to the Begin Quantity field on the Asset General screen, Expand Quantity field.
- Clears YTD depreciation on the Asset Book window.
- Updates the Begin Year Cost field with Cost Basis on the Asset Book window.
- Copies life-to-date (LTD) depreciation to the Begin Reserve field on the Asset Book window.
- Copies the Salvage Value to Begin Salvage Value field on the Asset Book window.
- Updates the Current Fiscal year to the new year on the Book Setup window.
General Ledger (GL) (including Analytical Accounting)
- The GL year-end close process:
- Rolls Profit and Loss accounts into retained earnings.
- Rolls Balance Sheet accounts into beginning balances for the new fiscal year.
- Removes Inactive accounts that do not have a balance or any historical postings.
- Marks the year as historical.
For more information on the detailed processes for each of the modules noted above or for assistance with your year-end close process, simply email GP Support.