Dynamics GP2017 year-end webcastDecember 7, 2017

Presented by:Kris Smiley – Director of Microsoft Dynamics GP, WestSandra Hughes – Consultant, South Central Region

• NexTec overview

• Module year-end close

• Questions & answers

Agenda

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An award-winning business technology consultancy

ERP, CRM, BI, Cloud and On-premise solutions to small and mid-sized businesses

Over 600 customers nationwide, 95% retention

Industries:

• Manufacturing

• Distribution / supply chain management

• Pharmaceuticals / nutraceuticals

• Food and beverage

• Chemicals

• Medical devices

• Professional services

• Agriculture / growers

• Oilfield services

About NexTec

Business technology consultation and implementation

NexTec services

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Professional services

• Project management

• Business requirements analysis

• Business consulting

• Educational services

• Business process documentation

• Business scenario development

• User operating procedures / Work instructions

• End-user training

• Post implementation optimization

• System admin training

• Toolset training

• Data conversion assistance

• Business intelligence assistance

• Crystal reports

• User-defined inquiries

• Business statistics

• Dashboards / portals

• Application customization

• Remote IT assistance

Technical services

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Order of close

Close procedures for IV, AR, AP, FA, GL

1099 processing

Today’s webcast

Q&A

Payroll year-end & tax update

ACA considerations

Q&A

Dynamics GP year-end close for 2017

Year-end closing

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Presentation agenda

• Part 1• Order of close

• Close Procedures for IV, AR, AP, GL, FA

• 1099 processing

• Q&A

• Part 2• Payroll year end

• Payroll Tax Update

• ACA considerations

• Q&A

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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Recap

1. Inventory – SOP & POP

2. Receivables

3. Payables

4. 1099s

5. Fixed Assets

6. General Ledger

7. Payroll

Module Year-end Close Procedures

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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 to avoid bottleneck

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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) for each Site Options to remove discontinued items, sold receipts and lot attributes, and update items’ standard cost

• 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 – Procedures

1. Post all Sales Invoices and Returns for the current year

2. Post all Purchase Receiving and Returns for the current year

3. Post all Inventory Adjustments and Transfers for the current year

4. Run Inventory Reconcile Utility – If you are using SOP and/or POP, reconcile these modules in addition to the Inventory module prior to closing. Reconcile Order: SOP, POP and then Inventory.

5. Complete Physical Inventory Counts and post Variances

6. Print reports

7. Take a backup before the next step

8. Perform Year-end Close

9. Close Fiscal Periods for Inventory

10. 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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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

• Enter and save transactions in batches for new year to avoid a bottleneck

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Receivables Management – What it does

• Closing is recommended by NexTecas 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 views as an option if the close is skipped

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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 – 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

• Perform Year-end Close

• Close the fiscal periods (This step is optional.)

• Close the Tax Year

• Make a Post-year-end backup

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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

• Enter and save transactions in batches for new year to avoid a bottleneck

• Can process 1099s after close

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Payables Management – What it does

• Closing is recommended by NexTecas 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

• Enter and post all AP and Purchasing transactions for current year

• Save, do not post transactions for new year

• Complete Payables Month End Processes

• Make a pre-year-end backup

• Perform Year-end Close

• Close Fiscal Periods for Payables

• Make a post-year-end backup

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) *** GP2013 and higher

• Use the Update 1099 Information utility for mass changes*** GP2013 and higher

• Edit the 1099 directly using 1099 details or Summary inquiries

*** Use for GP2010 and earlier

• Install Year-end Update *** GP2013 and higher

• Print 1099s

1099s 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 the GL

• 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 for the year

• Print reports

• Make a backup

• Verify the FA calendar is correct

• 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:• Inventory

• Receivables

• Payables

• Fixed Assets

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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.

• Removes inactive GL accounts without a balance/history.

• GP 2013 R2 and up will also 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! Don’t bypass errors!

• 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

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Helpful Links

• Inventory • https://support.microsoft.com/en-us/help/872713/year-end-closing-procedures-in-

inventory-control-in-microsoft-dynamics

• AR• https://support.microsoft.com/en-us/help/857444/year-end-closing-procedures-for-

receivables-management-in-microsoft-dy

• AP and 1099s• https://support.microsoft.com/en-us/help/875169/year-end-closing-procedures-for-

the-payables-management-module-in-micr

• Fixed Assets• https://support.microsoft.com/en-us/help/865653/the-year-end-closing-

procedures-for-the-fixed-asset-management-module

• General Ledger• https://support.microsoft.com/en-us/help/888003/year-end-closing-procedures-for-

general-ledger-in-microsoft-dynamics-g

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 GP2010

• Available now• Download YE Update for GP2013

• Download YE Update for GP2015

• Download YE Update for GP2016 (Includes 2016 R2)

• Must be installed on server and workstations

• Server install and upgrade requires no users in GP

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Payroll 2018 Tax Update - Explained

• Tax table update for 2018 final payrolls• Verify you have installed last tax update for 2017

• https://mbs.microsoft.com/partnersource/northamerica/deployment/downloads/tax-regulatory-updates/TUGP2016

• Tax table update for 2018• Not available yet, load after final 2017 payroll

• No longer available for GP2010• Can manually update taxes for GP2010 and earlier

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Payroll Year-end Procedures1. Verify that you have installed the latest 2017 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 2017 Year-End Update

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 2018

14. (Optional:) Close fiscal periods for the payroll series for 2017

15. Install the payroll tax update for 2018

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Payroll Year-end Procedures1. 1. Verify that you have installed the latest 2017 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 2017 Year-End Update

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 2018

14. (Optional:) Close fiscal periods for the payroll series for 2017

15. Install the payroll tax update for 2018

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ACA Considerations

• If you are filing the 1095-C forms in Microsoft Dynamics GP, we do recommend you to install the 2017 year end update. We have code changes in place for the 2017 year that need to be there PRIOR to you creating the year end wage file and gathering the 1095-C information.

• There were changes to the instructions on the back and small alignment changes to the front of the form.

• Roll down monthly low cost premium on plans to employees• Update Health Insurance Setup and roll changes down to employees

• New codes added for 2017 year Line 14 1J and 1K

• DO NOT need to order/purchase 1095-C and 1094-C forms. These will print with lines and instruction page

*** DO need to order W-2s and 1099s

• FREE SmartList Designer reports library, includes ACA SmartLists for you

• Will not create electronic file for 250+ employee count• 3rd party vendors

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ACA Changes - Resources

• WWW.NextecGroup.com

• Blog: Microsoft Dynamics GP Year-End Update 2017: Affordable Care Act (ACA)

• Blog: Microsoft Dynamics GP - 2017 Year - End Blog Series

• Blog : Microsoft Dynamics GP Year-End Update 2017: U.S. Payroll

• Last year Blog on Benefit Tracking and ACA and Hours (Video)

Heley, T. (2017). YearEndACA.

Payroll Year-end Demo

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Payroll Year-end - Recap

• Be sure you have the latest 2017 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 2018 tax update before processing 2018 payroll – we will let you know when that’s available

Questions?

Thank you.Sandra Hughes

SHughes@NexTecGroup.com

Kris Smiley

ksmiley@NexTecGroup.com