2009 Year End Close Webinar
by: Kris SundbergPlease email questions to
Presentation will be posted on our blog at http://dynamicmethods.com/blog/gpblog/
Agenda
OverviewModule Closing OrderSales Order and Purchase Order Processing InventoryAccounts ReceivableAccounts PayableFixed AssetsGeneral Ledger
Effects of Closing each Module Year end Closing Checklist Tips and RemindersPost Closing AdjustmentsQ&A
Module Closing Order
1. SOP and POP2. Inventory3. Receivables4. Payables5. Fixed Assets6. GL
GL
Fixed Assets
Receivables
Sales Order Processing
Payables
Purchase Order ProcessingInventory
Chart of Accounts
SOP and POP -Year End Procedure Effect
None!
SOP - Year End Closing Steps
This is optionalMake backupReconcile and Remove Sales Documents to
history (Sales > Utilities > Reconcile – Remove Sales
Documents) Moves any remaining completely shipped and voided
Orders to History
POP - Year End Closing Steps
These are OptionalMake BackupClose any PO’s that can be closed or canceled
(Purchasing > Transactions > Edit Purchase Orders)
Print Received-Not Invoiced Report and reconcile to the accrued purchases account in the GL Purchasing > Reports > Analysis > Received/Not Invoiced
Remove Completed PO’s (Purchasing > Routines > Remove Completed PO’s)
Inventory – Year End Procedure Effect
Transfers all summarized ‘Current Year’ quantity, cost, and sales amounts to ‘Last Year’ on Item Cards History
Zeros the ‘Quantity Sold’ field in the Item Quantities Maintenance Cards (Inventory > Cards > Quantities/Sites) for each site
Good time to remove discontinued items or update item’s standard cost
Inventory – Year End Closing Steps
Post all Transactions Perform Physical or Cycle Count and post
AdjustmentsReconcile Value of Inventory to GL
(Inventory > Reports > Activity > Stock Status)
Make BackupClose Year
(Inventory > Routines > Year End Close)
Inventory Tips
Don’t double click the “Process” buttonClose after you have posted all inventory
related transactions in GP for the old year, but before you post any inventory transactions for the new year
Mark update standard cost of items if you're using either the FIFO periodic or LIFO periodic valuation method. If you choose to update the standard cost, the standard cost of items will be adjusted automatically to the current cost.
Receivables– Year End Procedure Effect
Clears the ‘Year-to-Date’ fields and moves them to the ‘Last Year’ field in the customer summary and finance charge windows (Sales > Cards > Summary )
Receivables– Year End Closing Steps
Post all transactions for the current yearBalance receivables Sub-Ledger to the GLRemove Fully Paid Transactions
(Sales> Routines > Paid Transaction Removal)
Make backupClose year
(Sales> Routines > Year End Close)
Receivables Tips
If you’re using the calendar year, close both fiscal and calendar year If you’re on a fiscal year, close the appropriate one at
the appropriate time
Best practice is to close this module before posting any AR trx to the next year
Payables– Year End Procedure Effect
Clears the ‘Year-to-Date’ fields and moves them to the ‘Last Year’ field in the Vendor Yearly Summary window (Purchasing> Inquiry
>Vendor Yearly)
Payables– Year End Closing Steps
Post all Transactions for the current yearBalance payables Sub-Ledger to the GLPrint 1099’s
Modify: Purchasing > Cards > 1099 Details Print: Purchasing > Routines > Print 1099
Make backupClose year
(Payables> Routines > Year End Close)
Payables Tips
If you’re using the calendar year, close both fiscal and calendar year If you’re on a fiscal year, close the appropriate one at
the appropriate time
Best practice is to close this module before posting to the next year
There is NO effect on 1099 amounts. 1099 amounts are based on the monthly summarized Vendor 1099 Details window
Fixed Assets– Year End Procedure Effect
General Asset information window YTD maintenance amount is removed The Quantity is copied to the ‘Begin Quantity’ field
Asset Book window YTD Depreciation amount is removed Cost basis is copied to ‘Begin Year Cost’ Life-to-Date depreciation is copied to ‘Begin Reserve’ Salvage is copied to ‘Begin Salvage’
Increases the current Fiscal Year by one year for each book that is being closed
Fixed Assets– Year End Closing Steps
Close Payables and add any new Assets for the yearDepreciate all the assets to the last day of the yearRun year-end reports – see KB article for examplesVerify that Quarters are set up correctly for all
yearsTools>Setup>Financial > Fixed Assets > Quarter
Make backupClose year (Routines > Financial > Fixed Assets> Year End – Insert all Books and hit continue)
Fixed Assets Tips
Make sure you take depreciation to the last day of the year!!!
I recommend reviewing all the steps in the KB article that will be emailed to you
GL– Year End Procedure Effect
Closes all P&L accounts out to Retained Earnings, leaving the P&L accounts with a zero balance at the beginning of the new year
All balance sheet accounts roll forward to the new year
Retained Earnings accounts are the only BS type accounts whose balance should change
All open year transactions move from the GL20000 table to the GL30000 table
The Fiscal Period tables are updated to mark the current year as historical
GL– Year End Closing Steps
Post all adjusting entries and closing year transactions (Tools > Routines > Master Posting) Verify P&L and BS Account Types are correct Make Backup Run check links on financial tables (File > maintenance > Check links – Insert Financial tables and Run Check
Links) Print Detailed TB Print year end FRx reports Make sure Maintain History is checked (Tools > Setup > Financial > General Ledger) Setup New Year ( Tools > Setup > Company > Fiscal Period)
Close the Fiscal Year (Tools > Setup > Routines > Financial> Year End Close)
GL Tips
Best practice is to make sure there is free space on your server to allow the GL20000 table to double in size Calculation: In a SQL query, type:
select count(*) from GL20000 where OPENYEAR='XXXX'
(Enter the four digit year for XXXX)
Take the results of the SQL statement, divide it by 1,000, then multiply it by 2, and then add 50.
The log needs to be this size or larger in MB for the year end close.
For Example: If the above SQL statement returns 450,000 records, the formula would be: ((450,000 / 1,000) * 2) + 50 = 950. In this case the log would need to be at least 950MB in size.
May want to perform the closing at the server Have all other users exit GP The year end close routine appears to hang at 50% but it is still processing so
please let it run Any inactive accounts that have no history or unposted activity in a saved
transaction will be removed from the Chart of Accounts BACKUP is Critical If you use Microsoft FRx, you can keep one period in the most recent historical
year open (unchecked in the Fiscal Year Window) to prevent the following error message:
“FRX Print Engine Failed to Load the Company Calendar” Do not wait as one client did for 5 years to close
GL Tips – Unit Account clearing
Unit account balances are brought forward To clear the beginning balances without affecting
historical balances, have a SQL savvy friend run the following script against your company database:
delete GL20000 from GL00100, GL20000 where OpenYEAR = 'XXXX' and GL00100.ACTINDX = GL20000.ACTINDX and GL00100.ACCTTYPE = 2 and GL20000.SOURCDOC = 'BBF'
Divisional Closing
Close to multiple Retained Earnings Accounts Based on One segment – i.e. Fund, Division (Tools >Setup >Financial > General Ledger)
Top 5 Bad Closings - Number 5
Number 4
Number 3
Number 2
Number 1 Closing Gone Bad
Backup! Backup! Backup!
BACKUP
BACKUPBACKUPBACKUPBACKUP
BACKUPBACKUP
BACKUPBACKUP
GL Tips - Smart ListGL Tips - Smart List
After the Move
You can post into the last closed year
BS distribution
automatically carries
forward into 2009
BS distribution
automatically carries
forward into 2009P&L
distribution automatically
flushes into Retained Earnings
P&L distribution
automatically flushes into
Retained Earnings
Thanks for Coming!
PLEASE CONTACT DAVE AT [email protected]
FOR QUESTIONS OR COMPLAINTS ABOUT ME
OR [email protected] FOR FUTURE SUPPORT NEEDS
Thanks for Coming!
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