I get a lot of questions related to Dynamics GP year end procedures. Here are the top 10 FAQs, along with two bonus queries.
Q1: Do I have to close the fiscal year before the first day of the next fiscal year?
A1: The year-end closing routine does not have to be completed before you start the next fiscal year. However, we recommend that you close the year as soon as possible.
For more information about how to print a balance sheet if you have two open years, click the following article number to view the article in the Microsoft Knowledge Base: 866371: (http://support.microsoft.com/kb/866371/) How to print a Balance Sheet for the year if the prior year is not a closed year using Microsoft FRx
Q2: Can I make adjusting entries after I close the year?
A2: You can post an entry to the most recent historical year if the Posting to History check box is selected in the General Ledger Setup window. If you post an entry to a closed year, a second entry is automatically made that updates the beginning balances for the current fiscal year.
The following tables show an adjusting entry and the way the entry appears in the posting journal.
Q3: After I performed the year-end closing routine, beginning balances were brought forward for some of my sales and expense accounts. Some of my asset accounts also closed to the retained earnings account. Why did this problem occur, and what can I do to correct it?
A3: The posting type that is specified in the Account Maintenance window for the account determines whether a balance is brought forward for the account or whether the account is closed to the retained earnings account. Accounts that use the Balance Sheet posting type carry a balance forward. Accounts that use a Profit and Loss posting type close to the retained earnings account. To resolve this problem, restore from a backup, correct the posting type, and then run the year-end closing routine again.
For more information about how to correct accounts that have an incorrect posting type without restoring from a backup, click the following article number to view the article in the Microsoft Knowledge Base:
Q4: What happens to unit accounts during the year-end closing routine?
A4: Unit accounts are treated as balance sheet accounts. Unit accounts have a balance that is brought forward when the year is closed.
For more information about how to clear the beginning balances for unit accounts, click the following article number to view the article in the Microsoft Knowledge Base:
857582: (http://support.microsoft.com/kb/857582/ )
How to clear beginning balances for unit accounts in General Ledger in Microsoft Dynamics GP
Q5: I am preparing to close the year in General Ledger. Must everyone exit Microsoft Dynamics GP before I perform the year-end routine?
A5: We recommend that client computer users stop working in Microsoft Dynamics GP while the year-end closing routine is processing. If users continue to work in the program, their work may be lost if you have problems with the year-end closing routine and need to restore to the last backup.
Q6: I want to allocate the net profit to the retained earnings account or to the capital accounts each month. Also, net profit is supposed to be allocated to three retained earnings accounts or capital accounts. Can I do this?
A6: No, you cannot do this. However, you can specify a non-financial account in the Account Maintenance window. Use a number that is not in your current account numbering scheme. This account acts as a suspense account for the net income or for the net loss. Every month, you can post an adjusting entry to the three capital accounts that you want to adjust. For the offset account, use the suspense account. When the year-end closing routine is finished, use the suspense account as the retained earnings account. This offsets all the manual adjustments that you made to the suspense account during the year. Make sure that the suspense account does not appear on reports.
If you are using Advanced Financial Analysis for financial statements, when you format the balance sheet, put the NP line as the last line on the Advanced Financial Analysis statement. Then, put a page break before the NP line. The balance sheet must have an NP line. However, this line makes the net income or the net loss appear two times. Therefore, format the NP line so that it is off the financial statement. You can also use a report type of Other.
Q7: Why is the status of some of my financial reports set to Invalid?
A7: If a report is configured to use the accelerator file, any changes that are made to accounts in any one of the following windows causes the status of the financial report printing options to change to Invalid:
· Account Maintenance
· Unit Account Maintenance
· Mass Modify Chart of Accounts
· Year-End Closing
Before you print financial statements, you must update the accelerator file. To do this, follow these steps:
a. On the Reports menu, point to Financial, and then click Update Financial Accelerator.
b. Click Update, and then click Continue.
c. Close the Update Financial Accelerator Information window.
Q8: How are non-financial accounts closed during the year-end closing routine?
A8: If the non-financial account is configured to use the Balance Sheet posting type, the account balance is brought forward during the year-end closing routine. If the non-financial account is configured to use the Profit and Loss posting type, the account balance is closed to the retained earnings account during the year-end closing routine.
Q9: I am performing the year-end closing routine in General Ledger and it appears to be stopped at 50 percent. My workstation seems to have stopped responding. What should I do?
A9: If the year-to-date transaction open file (GL20000) is large, it may take a long time for the year-end closing routine to finish. If the hard disk is still processing, the year-end closing routine has not stopped responding. We recommend that you let the routine run. If the hard disk is not processing, we recommend that you restore from a backup. Then, follow the steps in this article again, starting at step 5.
Q10: If an adjusting entry has been posted to a year that is closed, can I print a corrected Trial Balance report for that year?
A10: Yes, you can print a corrected Trial Balance report for the year that is closed. To do this, follow these steps:
1. On the Reports menu, point to Financial, click Trial Balance, and then click New.
2. In the Option field, type With Adjustments.
3. In the Include area, click to select the Posting Accounts check box.
4. In the Year area, click to select the History check box, and then select the historical year in the Year list.
5. Click Destination to specify a report destination, and then click OK.
6. Click Print.
Q11: How does Microsoft Dynamics GP determine the financial statement that is printed for the account that I am adding?
A11: The category determines the type of financial statement that is printed when you use quick financial statements for the account that you are adding. The category is either the Balance Sheet category or the “Profit and Loss” category. You must format the reports to print the accounts that you want in Advanced Financial Analysis and in Microsoft FRx. The posting type is used during the year-end closing routine to determine the accounts that close to the retained earnings account and to determine the account that carries a balance forward. The posting type does not affect the financial statements.
Q12: Why did the year-end closing process delete some GL accounts that may be tied to budgets?
A12: The year-end closing process will delete GL accounts that are marked as inactive and have no activity in the current year
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