2009 Year End Close Webinar

by: Kris SundbergPlease email questions to

dfrost@dynamicmethods.com

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 DFROST@DYANMICMETHODS.COM

FOR QUESTIONS OR COMPLAINTS ABOUT ME

OR SUPPORT@DYANMICMETHODS.COM FOR FUTURE SUPPORT NEEDS

Thanks for Coming!