Companies that operate on a fiscal year instead of a calendar year have to do two year end closes in their ERP software. One close is for the calendar year for 1099 and tax filing and the other close would be for the company year end close. Most people ask what is the purpose of two closings. This is a great question the main purpose for two closing is to tax filings that are calendar related for example 1099 processing. The next question that is asked is what happens to within my ERP when I close the fiscal year and that is what we are going to go thru below:
Year End check List:
- Complete the posting procedures and the closing procedures for all registered modules.
- Close the year in your Payables Management
Below is a check list for closing the Payables Management Fiscal year-end:
- Post all transactions for the fiscal year
- Print the Vendor Period Analysis Report
- Make a backup that is named “Pre Year End”
- Close the Fiscal year
- Close the Fiscal Periods (Optional).
Under last closing date the data you do this will appear on the Fiscal line.
A. Close the year in Receivables Management
When you close the fiscal year in Receivables Management even thou the module is date sensitive the summary reports and the Amount Since last close view under the Customer Summary are updated as well as the SmartList Objects. Before you close the year the below steps are recommended that you follow:
- Post all the Sales and receivables Transactions for the year.
- Make a pre-year-ending closing backup.
- Close the year
- Close the fiscal periods (this is optional)
To close the year you go to: Tools / Routines / Sales / Year End Closing
- Select Year to Close: Fiscal
- Print report
- This will close your Fiscal year for Receivable Management.
- Post the final adjusting entries in General Ledger.
- Print an account list to verify the posting type of each account
- Close the last period of the fiscal year. (this is optional)
- Perform file maintenance on the Financial series group of modules (optional)
- Verify the settings in the General Ledger Setup window.
- Make a backup
- Print a final detailed trial balance report
- Print the year-end financial statements
- Set up a new fiscal year
- Close the fiscal year.
- Close the fiscal periods for all the series.(optional)
- These are the steps provided by Microsoft for closing a Fiscal year in Microsoft Dynamics GP.