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Dynamics GP2019 year-end webcastSandra Hughes, ConsultantDecember 4, 2019

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Presentation agenda• Part 1

• Accounts Payable, Accounts Receivable• Inventory• Company• Fixed Asstes and General Ledger• Q&A

• Part 2• Payroll year end• Payroll Tax Update• Q&A

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Data Backup• SQL Backup

• SQL Backups should happen every night• Perform closing first thing in the morning

• Get your IT Department to run backup before closing• Inside of GP

• Microsoft Dynamics > Maintenance > Backup• Must be logged on as ‘sa’ or DYNSA• File Location considerations

Part 1Module year end close procedures

Recommended order for closing

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PayrollInventory

AP

1099s

POP

AR

SOP

FA

GL

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Recap1. Sales Invoices & Purchase Order Receipts2. Receivables3. Payables and 1099s4. Inventory5. Fixed Assets6. General Ledger7. Payroll

Module Year-end Close Procedures

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Receivables Management

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Receivables Management – Timing• Fiscal should be done at the end of the company’s fiscal year

before posting any transactions in the new fiscal year• Calendar should be done at the end of the calendar year,

12/31 before posting any transactions in the new calendar year

• Post prior year transactions• Can enter and save transactions in batches for the new year

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Receivables Management – What it does• Closing is recommended by NexTec

as Receivables Management is not completely date sensitive.

• Skipping the close will skew the summary view for Amounts Since Last Close as well as Smartlistobjects

• Use date sensitive Fiscal Year orCalendar Year

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Receivables Management – What it does• 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)

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Receivables Management – What it does• The Fiscal close

will reset Year-to-Date fields

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Receivables Management – Procedures• Enter and post all AR and Sales transactions for current year

• Save, do not post transactions for new year• Complete Sales Month End Procedures• Make a Pre-year-end backup *** (SQL)• Perform Year-end Close• Close the fiscal periods (This should be a monthly process)• Close the Tax Year (Company)• Make a Post-year-end backup *** (SQL)

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Payables Management

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Payables Management – Timing• Fiscal should be done at the end of the company’s fiscal year

before posting any transactions in the new fiscal year• Calendar should be done at the end of the calendar year,

12/31 before posting any transactions in the new calendar year

• Post prior year transactions• Can enter and save transactions in batches for the new year• Can process 1099s after close

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Payables Management – What it does• Closing is recommended by NexTec

as Payables Management is not completely date sensitive.

• Skipping the close will skew the summary view for Amounts Since Last Close as well as Smartlistobjects

• Use date sensitive Fiscal Year orCalendar Year views as an option if the close is skipped

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Payables Management – What it does• Calendar – transfers the 1099 amount

from YTD to the Last Year column in the Amounts Since Last Close view in the Vendor Yearly Summary window

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

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Payables Management – Procedures• Post prior year transactions• Can enter and save AP and Purchasing transactions for the

new year• Complete Payables Month End Processes• Make a pre-year-end backup (SQL)• Perform Year-end Close• Close Fiscal Periods for Payables (Monthly process)• Make a post-year-end backup (SQL)

AR and AP Year-end Close Demo

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1099s• Updated when invoices and payments are posted if vendor is

set as 1099 vendor• Vendor is set to a 1099 vendor mid-year can cause 1099

amounts to be understated• No state magnetic media

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1099s – Validate and Print• Verify 1099 amounts

• Print a 1099 edit list• Edit 1099 Transaction details (recommended) • Use the Update 1099 Information utility for mass changes• Edit the 1099 directly using 1099 details or Summary

inquiries• Install Year-end Update

*** GP2015 and higher if needed• Print 1099s

1099s Demo

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Inventory - Timing• Should be run before transactions are posted for

the new year• Post all Sales Order Processing and Purchase

Order Processing transactions as they affect inventory quantities

• Okay to enter and save transactions for the new year

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Inventory – What it does• Transfers all summarized current-year Quantity, Cost and Sales

amounts to last-year for the Items for which you have been keeping summarized Sales History *** Seen here: Cards Inventory History

• Updates each Item’s Beginning Quantity from the Quantity on Hand at each site *** Some reports—such as the Turnover Report—use the beginning quantity field in calculations

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

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

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Inventory – Procedures1. Post all Sales Invoices and Returns for the current year2. Post all Purchase Receiving and Returns for the current year3. Post all Inventory Adjustments and Transfers for the current year4. Complete Physical Inventory Counts and post Variances5. Run Inventory Reconcile Utility – If you are using SOP and/or POP run check links

these modules prior to closing. Check Links Order: SOP, POP and then Reconcile Inventory.

6. Print reports 7. Take a backup before the next step (SQL)8. Perform Year-end Close9. Close Fiscal Periods for Inventory10. Make a final backup.

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Inventory – Year-end Close Options• Remove Discontinued Items will remove discontinued items with zero

quantities. It will remove all transaction history for those items. There are some reports that will print discontinued item information. If a discontinued item is part of a kit or a component of a BOM or is a BOM, it will not be removed.

• Remove Sold Lot Attributes will remove those lot attributes of items that are tracked by lot numbers and that have been completely sold.

• Remove Sold Receipts and Cost Change History will remove receipts that have been completely sold. If you choose to remove, you must enter a cutoff date to remove prior to.

• Update Item’s Standard Cost If an item is using standard cost, the standard cost will be updated with the current cost, or the last purchased cost

Inventory Year-end Close Demo

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Company (Sales Taxes) – Timing

• Post all Sales and Receivable Transactions for the prior year

Company Year-end Close Demo

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Fixed Assets – Timing• After completing additions, retirements, and depreciation for

the current year• Run after Payables Year-end and before closing Fixed Assets• Cannot process new year transactions in FA until year-end is

completed. • 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

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Fixed Assets – What it does• 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

• Current Fiscal Year is set to the new year in the Book• Dynamics GP 2015 and higher have a Fixed Assets Year End report (Status

report of all assets affected by the close)

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Fixed Assets – Procedures• Complete all Additions, Retirements, and • Depreciation all assets through the last day of the year• Perform the GL Posting process • Print reports• Verify the FA calendar is correct and Quarters are correct

• Non-calendar year or non-standard year: Contact NexTec• Make a backup• Perform Year-end Close

Fixed Assets Year-end Close Demo

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General Ledger – Timing• 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:• Receivables• Payables• Inventory• Company• Fixed Assets

• Usually done after the first month-end of the new year

• Can still enter prior year entries after close

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General Ledger – What it does• Updates beginning balances for next year from ending balance for

balance sheet accounts.• Creates a closing entry to retained earnings for P&L accounts.• Moves all year transactions from open to closed historical table.• Can removes inactive GL accounts without a balance/history.• Can clear out Unit Accounts if marked• 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)

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General Ledger – Procedures• Complete the posting procedures and the closing procedures for the other modules.• Post the final adjusting entries in GL.• Use smartlist to verify posting types for all accounts• Reconcile year• Verify the GL Setup by going to Financial Page

• Confirm the Retained Earnings Account • Make sure you are maintaining transaction history

• Print a final Detailed Trial Balance Report• Create new year and close the fiscal periods.• Make a backup!• Have all other users out of Dynamics GP when you perform the year end

close• Perform the year-end close • Close all the fiscal periods for all the series

General Ledger Year-end Close Demo

Questions?

Part 2Payroll year-end update and procedures

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Payroll Year-end Update - Explained• Code update (installation and upgrade data) • No longer available for GP2013• Available now

• Download YE Update for GP2015• Download YE Update for GP2016• GP 2018 will include the October 2019 release (18.2)

• Must be installed on server and workstations• Server install and upgrade requires no users in GP

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Payroll Year-end Update - Explained• There are some BIG changes to the W-4 with the 2019 Year-End

Update!! See Terry's AWESOME W-4 blog for more details around those changes New W-4 fields for 2020

• No W-2 or W-3 Form changes• There are NO EFW2 form changes• There are no Affordable Care Act changes (ACA)!!

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Payroll 2019 Tax Update - Explained• Tax table update for 2019 final payrolls

• Verify you have installed last tax update for 2019• Administration > Setup > System > Payroll Tax

Microsoft Dynamics > Maintenance > U.S. Payroll Updates > Check for updates• 2020 Round 1 Tax updates target release date is mid December• 2020 Round 2 Tax Update will be available mid-January 2020• https://community.dynamics.com/gp/b/dynamicsgp/posts/new-2020-payroll-w-4-how-does-

it-work-in-microsoft-dynamics-gp

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Payroll Year-end Procedures1. Verify that you have installed the latest 2019 payroll tax update

2. Complete all pay runs for the current year

3. Complete all month-end, period-end, or quarter-end procedures for the current year

4. Make a backup of the original file

5. Install the 2019 Year-End Update (If Required)

6. Create the Year-End file

7. Make a backup of the new file

8. Verify W-2 and 1099-R statement information

9. Print the W-2 statements and the W-3 Transmittal form

10. Print the 1099-R forms and the 1096 Transmittal form and ACA forms

11. (Optional:) Create the W-2 Electronic file

12. (Optional:) Archive inactive employee Human Resources information

13. Set up fiscal periods for 2020

14. (Optional:) Close fiscal periods for the payroll series for 2019

15. Install the payroll tax update for 2020

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ACA Considerations

There are no Affordable Care Act changes (ACA)!!

Payroll Year-end Demo

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Payroll Year-end - Recap• Be sure you have the latest 2019 tax update• Install the Year-end Update before you create the Year-end Wage

File• You can remove and recreate the Year-end Wage File, this will clear

any W-2 or ACA edits• Coordinate time with IT (or us) to take lots of backups during the

process• Be sure to install the 2020 tax update before processing 2020

payroll – we will let you know when that’s available • Scheduled for mid December

Questions?

For additional InformationEmail: Support@nextecgroup.com

Thank you.Sandra HughesSHughes@NexTecGroup.com