GP 2012 Year End Webinar

1. GP 2012 Year End Webinar Janelle Montplaisir, MCT

2. Agenda • Install Year End Update • Module close order • US Payroll • Canadian Payroll • Inventory • Receivables Management • Payables Management • Fixed Assets

3. Agenda cont’d…. • Analytical Accounting • General Ledger • Additional Information • Year End Resources • Q&A

4. Install Year End Update Highlights • Download media from Microsoft Customer Source and read all instructions prior to starting • All prior service packs, hotfixes, compliance, and year end updates are included • Can be applied now – do not have to wait until last 2012 pay transactions • Plan ahead – May take some time to complete and all users must stay out of Microsoft Dynamics GP until update is complete

5. Install Year End Update Highlights cont’d…. • Backup the DYNAMICS database and all company databases • Backup all reports and forms dictionary (.DIC) files • Apply latest 2012 payroll tax tables • Install on server and all workstations • Install server first and run utilities to update Dynamics database and all companies databases, then apply to all workstations

6. Install Year End Update Highlights cont’d…. • Recommended to complete in test environment first • Refer to the 2012 Year End Update.pdf or detailed steps • Required for all Payroll customers • Contact your Partner to schedule and for assistance • Backup, Backup, Backup!!!

7. Module Close Order • Payroll – (independent from other modules and always performed at calendar year end) • Inventory Control • Receivables Management • Payables Management • Fixed Assets • Analytical Accounting • General Ledger

8. US Payroll – Code Changes: • No W-2 or W-3 Form changes • EFW2 Changes (Electronic Filing) • Payroll country code changes • 2013 New Medicare Taxes on High Earners • Product Quality Fixes around Payroll Year-End **Required for payroll customers**

9. US Payroll – Round 1 Tax Changes • FICA Social Security Limit $113,700 • FICA Employee Social Security Rate 6.2 • 2013 New Medicare Taxes on High Earners • Employee only after $200,000 extra .9 (2.35) • State Tax Rates • **Required for payroll customers**

10. US Payroll – Supported Versions • Supported versions • Dynamics GP 10.0 • Will receive the 2012 Payroll Year-end Update and the 2013 Round 1 Payroll Tax Update • Will NOTreceive any needed code changes for 2013 Q1 941 form (Pending IRS finalization) or future tax updates • Upgrade now • Dynamics GP 2010 • Dynamics GP 2013 • Release Dates • 2012 Year End Update – Released Nov 16th • 2013 Tax Update (Round 1) – Mid-December • 2013 Tax Update (Round 2) – January 2013

11. US Payroll – Close Highlights • Complete 2012 pay transactions and verify reports • Ensure the latest 2012 tax tables are applied and the 2012 Year End Update is installed • Make a ‘Pre-Year End Wage File’ Backup • Create the 2012 Year End Wage File - (complete listed tasks anytime after wage file is created) • Year End Wage Reports • Edit W-2 information • Print W-2 information • Generate W-2 Electronic File

12. US Payroll – Close Highlights Cont’d… • Apply 2013 Payroll Tax Updates prior to any 2013 Pay transactions • Refer to KB850663: ‘Year-End closing procedures for Microsoft Dynamics Payroll’ for detailed closing steps

13. US Payroll – Additional information • Microsoft Customer Source • Downloads and Tax Updates • US 2012 Year End Update.pdf • Tax Forms – 800-432-1281 www.microsoftbusinesschecks.com • IRS Forms and Publications http://www.irs.gov/formspubs/index.html • Accuwage for Electronic File Verificationhttp://www.ssa.gov/employer/accuwage/index.html

14. Canadian Payroll • Canadian Payroll 2012 Year End Update has not yet been released • Check Microsoft Customer Source and blog site for more updates • Refer to KB861806: “Year-End closing procedures for the Canadian Payroll module in Microsoft Dynamics GP” for detailed steps and information

15. Inventory – When to Close? The Inventory module should be closed at the end of your Fiscal year, before any new transactions that would affect inventory quantities are posted for the next year

16. Inventory – Close Highlights • Is not date sensitive • Post all transactions (IV, SOP, POP) for the year • Pre-reconcile backup • Reconcile inventory quantities • Complete physical inventory count and post adjustments as needed • Print reports as needed

17. Inventory – Close Highlights Cont’d… • Close Inventory • Close fiscal periods for Inventory Series (Optional) • Make a final backup • Refer to KB872713: ‘Year-End closing procedures in Inventory Control in Microsoft Dynamics GP’ for detailed Inventory closing steps **Good time to implement Historical Inventory Trial Balance (HITB)**

18. Inventory – What is affected? • 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 • Updates each Item’s Beginning Quantity from the Quantity on Hand at each site • Zeros the Quantity Sold field in the Item Quantities Maintenance for each Site • Gives you the option to: Remove Discontinued Items, Remove Sold Receipts, Remove Sold Lot Attributes, and Update Item’s Standard Cost

19. Inventory – Additional Information • KB872713: “Year-End Closing procedures in Inventory Control in Microsoft Dynamics GP” • KB864622: “Information about the order in which the reconcile procedures should be run in Microsoft Dynamics GP” • KB855316: “Inventory Accidentally Closed Twice” • KB872182: “Inventory year end close does not remove discontinued items”

20. Receivables – When to Close? • The Calendar Year end close should be done at the end of the calendar year prior to posting any transactions in the next calendar year • The Fiscal Year end close should be done at the end of the fiscal year prior to posting any transactions in the next fiscal year

21. Receivables – Close Highlights • Not everything is date sensitive • Post all transactions • Make a pre-year end backup • Close year (fiscal, calendar, or both) • Close fiscal periods (optional) • Close Tax Year • Refer to KB857444: ‘Year-end closing procedures for Receivables Management in Microsoft Dynamics GP’ for detailed steps

22. Receivables – What is affected? • 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)

23. Receivables – Additional Information • KB857444: “Year-end closing procedures for Receivables Management in Microsoft Dynamics GP” • KB851140 : “Information about performing the year-end closing procedure in Receivables Management in Microsoft Dynamics GP after December 31” • KB856865: “Removing outdated statement runs from the Reprint Statements Window” • SQL Scripts available if not closed on time – contact your Partner

24. Payables – When to Close? • The Calendar Year End Close Routine should be run at the end of the Calendar year prior to posting transactions in the new year • The Fiscal Year End Close Routine should be run at the end of the Fiscal year prior to posting transactions in the new year

25. Payables – 2012 Year End Update • 1099 DIV and 1099 MISC • Movement of fields and checkboxes to accommodate forms. • Increase and decrease in height of fields to accommodate forms. • (Optional) IRS will allow filers to truncate/mask a recipients ID numbers (SSN, ITIN or ATIN). • Since this is optional and not for all ID numbers, no change will be made to mask the ID number in Microsoft Dynamics GP.

26. Payables – Close Highlights • Not everything is date sensitive • Post all transactions for the year • Print Aged Trail Balance (optional) • Install 2012 Year End update if needed • Verify 1099 information • Edit 1099 information if needed - (PSTL 1099 modifier or 1099 Details)

27. Payables – Close Highlights cont’d… • Print 1099’s • Make Pre-Year End backup • Close year (fiscal, calendar, or both) • Close Tax Year • Refer to KB875169: ‘Year-End closing procedures for the Payables Management module in Microsoft Dynamics GP’ for detailed steps

28. Payables – What is affected? • The Calendar Year End Close process transfers the 1099 Amounts from the Year to Date column to the Last Year column in the Amounts Since Last Close view in the Vendor Yearly Summary window • The Fiscal Year End Close Process transfers all other amounts from the Year to Date column to the Last Year column in the Amounts Since Last Close view

29. Payables – Additional Information • KB875169: “Year-end closing procedures for the Payables Management module in Microsoft Dynamics GP” • KB918536: “How to change the 1099 amount for vendor who was not marked as 1099 vendor…….” • SQL Scripts available if not closed on time – contact your Partner

30. Fixed Assets – When to close? • The Fixed Assets Year End Close should be run after you close Payables Management, but before you close the General Ledger • You can close each book separately, but you must close all books before you can do any processing in Fixed Assets for the new year

31. Fixed Assets – 2012 Year End Update • Luxury Auto Maximum Depreciation Deduction Amounts • The maximum depreciation deduction amounts allowed for luxury vehicles has been updated for assets placed in service in calendar year 2012 to comply with IRS Guidelines. • Low Value Asset Bug 59651 has been fixed • You can now depreciate low value assets (less than a penny per period) without a problem. The system will not hang.

32. Fixed Assets – Close Highlights • Perform Payables Year End close • Enter all Fixed Assets and complete transactions for current fiscal year • Depreciate all assets through the last day of current fiscal year • Print any reports needed • Close Year • Refer to KB865653: “The year-end closing procedures for the Fixed Asset Management module in Microsoft Dynamics GP” for detailed steps

33. Fixed Assets – What is affected? • In the Asset General Information Window: • 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: • The YTD Depreciation Amount is cleared • Cost Basis is copied to Begin Year Cost field • Life to Date Depreciationis copied to Begin Reservefield • Salvage Value is copied to Begin Salvage field • The Current Fiscal Year is increased for each closed book

34. Analytical Accounting • Analytical Accounting is closed with General ledger so no ‘separate’ process • Follow the steps in KB960356 : “The year-end close procedures for Analytical Accounting” • With Dynamics GP 2010 and Dynamics GP 10.0 SP2 or later there is an Analytical Accounting year end close option • This option enables balance brought forward entries on dimensions • Analytical Accounting data closes with General Ledger regardless of whether this option is marked

35. General Ledger – When to close? • The General Ledger Year End Close should be done after you have completed your Year End closings for all other modules in the following order: • Inventory • Receivables • Payables • Fixed Assets • General Ledger is a Fiscal Year close

36. General Ledger – Close Highlights • Complete posting and closing procedures in other modules first • Post adjusting entries (can post back one historical year if needed) • Verify account posting types • Print trial balance and financial statements as needed • Make Pre-close backup

37. General Ledger – Close Highlights Cont’d… • Close Fiscal Year – let process run to completion • Print Year End close report • Close Fiscal Periods (Optional) • Refer to KB888003: “Year End closing procedures for General Ledger in Microsoft Dynamics GP” for detailed steps

38. General Ledger – What is affected? • The year end close process closes all Profit and Loss 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 are updated with the beginning balance in the new year which will be the same as the ending balance from the year you are closing • The Retained earnings account(s) are updated with the amount from all P&L accounts if you close to one Retained Earnings account, or with the amount from the P&L accounts in that division if you close to divisional Retained Earnings

39. General Ledger – What is affected cont’d..? • The Retained Earnings accounts are the only Balance Sheet accounts that should have a different beginning balance than the ending balance from the year that you are closing • The year end close routine moves all open year transactions from the GL20000 table to the GL30000 table • Balance brought forward journal entries are created in the GL20000 • The Fiscal Period tables are updated to mark the year that you are closing as historical

40. General Ledger – Important points • Remember to make restorable backups as needed and follow ALL the steps in KB888003 • Make sure that you have enough free space on the server to allow for the GL20000 table to double in size • Perform the Year End Close at the server • Have all other users out of Dynamics GP when you perform the year end close • The year end close routine does appear to hang at 50%, but it is still processing, so let it run

41. General Ledger – Additional Information • KB871679: “How to set up an adjusting period” • KB850615: “How to use divisional retained earnings accounts” • KB864913: “Changing the posting type on an account after you close the year” • KB850741: “ Retained Earnings account not found” • KB857582: “Query to clear beginning balances for unit accounts” • KB856550: “General Ledger year end close still in process and batches cannot be posted”

42. Additional information • Make Backups!!!! • PTO Accrual warning message bug • Vacation pay exceed employee vacation available”.  This is a warning message • Affects GP2010

43. Year End Resources • Microsoft Blog https://community.dynamics.com/product/gp/gptechnical/b/dynamicsgp/default.aspx • Dynamics University http://dynamicsuniversity.com/gp-year-end • Year-end information on Customer Sourcehttps://mbs.microsoft.com/customersource/downloads/taxupdates • Knowledge Basehttps://mbs.microsoft.com/knowledgebase/search.aspx

44. Q&A