Year-end closing procedures for the Payables Management module in Microsoft Dynamics GP

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Article ID: 875169 - View products that this article applies to.
Note Before you follow the instructions in this article, make sure that you have a complete backup copy of the database that you can restore if a problem occurs.
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Summary

This article describes the recommended year-end closing procedures for the Payables Management module in Microsoft Dynamics GP. The "More Information" section contains the following information:
  • A checklist of the steps that you must follow to complete the calendar year-end closing procedures.
  • A checklist of the steps that you must follow to complete the fiscal year-end closing procedures.
  • Detailed information about each step in the checklists.
  • A list of frequently asked questions.

INTRODUCTION

Read this whole article before you perform the steps. If you have questions, contact Microsoft Dynamics Technical Support.

More information

Payables Management master year-end closing checklist

Note Use this checklist if you are closing your fiscal year and your calendar year at the same time.
  1. Post all transactions for the year.
  2. Print the Aged Trial Balance with Options report.
  3. Print the Vendor Period Analysis Report.
  4. Install the Payroll year-end update (optional)
  5. Make a backup that is named "Pre-1099 Edits."
  6. Verify the 1099 information and edit it if it is required.
  7. Print the 1099 statements.
  8. Make a backup that is named "Pre Year-End."
  9. Close the year.
  10. Close the fiscal periods.
  11. Close the tax year.
  12. Make a backup that is named "Post Year-End."

Payables Management calendar year-end closing checklist

Note Although the Payables Management module is date-sensitive, the SmartList objects, the Payables Management summary reports, and the Amounts Since Last Close view of the Vendor Yearly Summary window are updated based on the closing of the Payables Management module. Therefore, we recommend that you follow these steps so that the SmartList objects, the Payables Management summary reports, and the Amounts Since Last Close view of the Vendor Yearly Summary window are correct.
  1. Post all transactions for the calendar year.
  2. Print the Aged Trial Balance with Options report.
  3. Make a backup that is named "Pre-1099 Edits."
  4. Verify the 1099 information and edit it if it is required.
  5. Print the 1099 statements.
  6. Make a backup that is named "Pre Year-End."
  7. Close the calendar year.
  8. Close the fiscal periods.
  9. Close the tax year.
  10. Make a backup that is named "Post Year-End."

Payables Management fiscal year-end closing checklist

  1. Post all transactions for the fiscal year.
  2. Print the Vendor Period Analysis Report.
  3. Make a backup that is named "Pre Year-End."
  4. Close the fiscal year.
  5. Close the fiscal periods.
  6. Make a backup that is named "Post Year-End."

Detailed information for each step in the year-end checklist

Step 1: Post all transactions for the year

Post all transactions for the year before you close the year. If you want to enter future period transactions before you close the year, create a new batch for the future period transactions. Save the future period transactions in the new batch, but do not post the new batch until after the year has been closed.

The following areas of Microsoft Dynamics GP are not date-sensitive:
  • The Amounts Since Last Close view of the Vendor Yearly Summary window
  • SmartList objects
  • Vendor Summary reports
These areas of Microsoft Dynamics GP will be incorrect if you do not close the payables year after you enter all 2013 transactions and before you enter all 2014 transactions. However, the Amounts Since Last Close view of the Vendor Yearly Summary window is editable. Therefore, you can update the information in the Amounts Since Last Close view of the Vendor Yearly Summary window if it is required.

To access the Amounts Since Last Close view of the Vendor Yearly Summary window, follow these steps:
  1. On the Cards menu, point to Purchasing, and then click Summary.
  2. In the Vendor Credit Summary window, type a vendor ID in the Vendor ID field, and then click Yearly.
  3. In the Summary View list, click Amounts Since Last Close.
To view the SmartList columns that are affected, follow these steps:
  1. Open SmartList. To do this in Microsoft Dynamics GP, click SmartList on the Microsoft Dynamics GP menu.
  2. Expand the Purchasing node, and then click Vendors.
  3. Click Columns.
  4. Click Add.
  5. Click the following fields in the Available Columns list.
    Note The items flagged with an asterisk are affected by the calendar year-end close. All other items are affected by the fiscal year-end close.
    • *1099 Amount YTD
    • *1099 Amount LYR
    • Amount Billed YTD
    • Amount Billed LYR
    • Amount Paid YTD
    • Amount Paid LYR
    • Average Days To Pay - Year
    • Discount Available LYR
    • Discount Available YTD
    • Discount Lost LYR
    • Discount Lost YTD
    • Discount Taken LYR
    • Discount Taken YTD
    • Finance Charge LYR
    • Finance Chare YTD
    • Number of Finance Charges LYR
    • Number of Finance Charges YTD
    • Number of Invoice LYR
    • Number of Invoice YTD
    • Number of Paid Invoice YTD
    • Returns LYR
    • Returns YTD
    • Trade Discounts Taken LYR
    • Trade Discounts Taken YTD
    • Withholding LYR
    • Withholding YTD
    • Write Offs LYR
    • Write Offs YTD
  6. Click OK.
  7. Click OK.
To view the Vendor Summary reports, follow these steps:
  1. On the Reports menu, point to Purchasing, and then click Analysis.
  2. In the Reports list, click Calendar Year.
  3. In the Options list, click an option, and then click Print.

Step 2: Print the Aged Trial Balance with Options report

We recommend that you print a paper copy of the Aged Trial Balance with Options report to keep with your year-end permanent financial records. To do this, follow these steps:
  1. On the Reports menu, point to Purchasing, and then click Trial Balance.
  2. In the Reports list, click Aged Trial Balance with Options.

Step 3: Print the Vendor Period Analysis report

We recommend that you print a paper copy of the Vendor Period Analysis report to keep with your year-end permanent financial records. To do this, follow these steps
  1. On the Reports menu, point to Purchasing, and then click Analysis.
  2. In the Reports list, click Period.

Step 4: Install the Payroll year-end update (optional)

If there are compliance changes for Payables Management, such as 1099 form changes, install the Payroll year-end update. If there are no changes or compliance issues for the tax year for Payables Management, you may skip this step.

Review the changes that are included in the Payroll year-end update. To do this, visit the appropriate Microsoft Web site:
Customers
https://mbs.microsoft.com/customersource/downloads/taxupdates

Partners
https://mbs.microsoft.com/partnersource/support/selfsupport/taxupdates/

Step 5: Make a backup that is named "Pre-1099 Edits"

Create a backup, and then put the backup in safe, permanent storage. A backup gives you a permanent record of the company's financial position at the end of the year, and this backup can be restored later if it is required. A backup lets you recover data quickly if a power fluctuation or other problem occurs during the year-end closing procedure.

To create a backup in Microsoft Dynamics GP, follow these steps:
  1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.
  2. In the Company Name list, click your company name.
  3. Change the path of the backup file if it is required, and then click OK.
    Note We recommend that you name this backup "Pre-1099 Edits" to differentiate it from your other backups.

Step 6: Verify the 1099 information and edit it if it is required

To print the 1099 edit list, follow these steps:
  1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing, and then click Print 1099.


To open/edit the "1099 Details" window, use one of the following methods:

Method 1
  1. On the Cards menu, point to Purchasing, and then click 1099 Details.
  2. In the Vendor ID list, click a vendor ID.
  3. In the Tax Type list, select one of the following:
    • Dividend
    • Interest
    • Miscellaneous
  4. In the Display area, click Month or Year, and then type 2013 in the Year field.
  5. In the Amount column, type the correct 1099 amount.
  6. Click Save.
Method 2
  1. On the Cards menu, point to Purchasing, and then click Summary.
  2. In the Vendor ID list, click a vendor ID, and then click Period.
  3. In the Year field, type 2013.
  4. In the Month/Period field, select the appropriate month or period.
  5. Click the "1099 Details" button that appears next to the 1099 Amount field.
  6. In the Amount column, type the correct 1099 amount.

Step 7: Print the 1099 statements

Note You can do this at any time.

To print the 1099 statements, follow these steps:
  1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing, and then click Print 1099.
  2. In the 1099 Year field, type 2013.
  3. Each of your 1099 report types must be printed separately. In the Print 1099 window, click the options that you want in the 1099 Type field and in the 1099 Box Number field, and then click Print.
The following table provides additional information about the fields on the 1099 form and where this information can be located in Microsoft Dynamics GP.
Collapse this tableExpand this table
Fieldwindow where data is located
Payers name, street address, city, state, and ZIP Code/Postal CodePrint 1099 window
Payers Federal Identification numberPrint 1099 window
Recipients name, address, and Zip Code/Postal CodePrimary Address of the Vendor Maintenance window
Recipients identification numberTax ID field of the Vendor Maintenance Options window
Amounts for boxes 1-9 on the Dividend Form or 1-16 on the Miscellaneous Form1099 Amount field in the Vendor Yearly Summary window
Currently, Microsoft Dynamics GP does not handle magnetic media filing of state 1099s. The following Microsoft Dynamics Partner does offer compatible State W-2 and 1099 magnetic media products. For more information, contact:
Greenshades Accounting Software, Inc.
7800 Belfort Parkway Suite 220
Jacksonville, FL 32207
General: 1-800-209-9793 (Toll-Free)
Sales: 1-800-209-9793x2 (Toll-Free)
sales@greenshades.com
http://www.greenshades.com

Step 8: Make a backup that is named "Pre Year-End"

Create a backup, and then put the backup in safe, permanent storage. A backup gives you a permanent record of the company's financial position at the end of the year, and this backup can be restored later if it is required. A backup lets you recover data quickly if a power fluctuation or other problem occurs during the year-end closing procedure.

To create a backup in Microsoft Dynamics GP, follow these steps:
  1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.
  2. In the Company Name list, click your company name.
  3. Change the path of the backup file if it is required, and then click OK.
    Note We recommend that you name this backup "Pre Year-End" to differentiate it from your other backups.

Step 9: Close the year

To close the year, follow these steps:
  1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Purchasing, and then click Year-End Close.
  2. If you are closing both your fiscal and calendar year at the same time, click All. If you are just closing your calendar year, click Calendar. If you are just closing your fiscal year, click Fiscal.
  3. Click to select the Print Report check box, and then click Close Year.
    Note We recommend that you keep a paper copy of the year-end report together with your permanent year-end audit records.
To view the Vendor Yearly Summary window, follow these steps:
  1. On the Cards menu, point to Purchasing, and then click Summary.
  2. In the Vendor ID field, type a vendor ID to view, and then click Yearly.
The calendar year details
The calendar year-end process in Microsoft Dynamics GP will clear the 1099 Amount Year to Date field and then transfer the amount to the 1099 Amount Last Year field for the Amounts Since Last Close view of the Vendor Yearly Summary window.

The fiscal year details
The fiscal year-end process in Microsoft Dynamics GP will clear the following fields:
  • Amount Billed YTD
  • Amount Paid YTD
  • Average Days To Pay - Year
  • Discount Available YTD
  • Discount Lost YTD
  • Discount Taken YTD
  • Finance Charge YTD
  • Number of Finance Charges YTD
  • Number of Invoice YTD
  • Number of Paid Invoice YTD
  • Returns YTD
  • Trade Discounts Taken YTD
  • Withholding YTD
  • Write Offs YTD
The amounts in these fields will also be updated in the Amounts Since Last Close view of the Vendor Yearly Summary window:
  • Amount Billed LYR
  • Amount Paid LYR
  • Discount Available LYR
  • Discount Lost LYR
  • Discount Taken LYR
  • Finance Charge LYR
  • Number of Finance Charges LYR
  • Number of Invoice LYR
  • Returns LYR
  • Trade Discounts Taken LYR
  • Withholding LYR
  • Write Offs LYR

Step 10: Close the fiscal periods

You can use the Fiscal Periods Setup window to close any fiscal periods that are still open for the year. This prevents users from accidentally posting transactions to the wrong period or year. Verify that you have posted all transactions for the period and the year for all modules before closing fiscal periods. If you must later post transactions to a fiscal period that you have already closed, you can return to the Fiscal Periods Setup window to reopen the period before you can post a transaction.

To close a fiscal period, follow these steps:
  1. Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then click Fiscal Periods.
  2. Click to select the Purchasing check box for the Period that you must close.

Step 11: Close the tax year

Note This procedure should only be completed after you have completed the year-end closing procedures for all sales and purchasing modules.

To close the tax year, follow these steps:
  1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Company, and then click Tax Year-End Close.
  2. Click to select the Close Year check box and the Print Report check box.
  3. Click Process. When you are prompted to continue with the year-end close. Click Yes.
    Note We recommend that you keep a paper copy of the year-end report together with your permanent year-end audit records.

Step 12: Make a backup that is named "Post Year-End"

Create a backup, and then put the backup in safe, permanent storage. A backup gives you a permanent record of the company's financial position at the end of the year, and this backup can be restored later if it is required. A backup lets you recover data quickly if a power fluctuation or other problem occurs during the year-end closing procedure.

To create a backup in Microsoft Dynamics GP, follow these steps:
  1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.
  2. In the Company Name list, click your company name.
  3. Change the path of the backup file if it is required, and then click OK.
    Note We recommend that you name this backup "Post Year-End" to differentiate it from your other backups.

Frequently asked questions

Q1: Are inactive vendor records cleared during year-end closing? If not, how can inactive vendor records be removed?

A1: No, inactive vendor records are not automatically removed. To remove an inactive vendor record, the following conditions must be true:
  • No current year 1099 amounts exist for the vendor
  • The vendor has no documents in work or history.
To delete all inactive vendor records that fit these criteria, follow these steps:
  1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Utilities, point to Purchasing, and then click Mass Vendor Delete.
  2. In the Range list, click by Vendor Status.
  3. In the From list, click Inactive.
  4. In the To list, click Inactive.
  5. Click Process.
Q2: What should I do if I must issue a check on January 1, 2014 but I am not ready to close 2013 yet?

A2: Print the checks, but post them after you process your year-end closing. If you must post the checks immediately, change the Amount Paid fields in the Amounts Since Last Close view of the Vendor Yearly Summary window.



Properties

Article ID: 875169 - Last Review: October 23, 2013 - Revision: 18.0
Applies to
  • Microsoft Dynamics GP 2013
  • Microsoft Dynamics GP 2010
  • Microsoft Dynamics GP 10.0, when used with:
    • Payables Management
Keywords: 
kbexpertiseinter kbexpertisebeginner kbinfo kbmbsmigrate KB875169

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