Tip’s and Trick’s: Year End Closing checklist

With the new year around the corner and tax season on the way it  is important to start getting everything set to close out the year.  We at KTL know how much goes into this and have developed a checklist to help you move efficiently through the steps to close out the year the easiest way possible.

1. Do a backup of your company and DYNAMICS databases.

2. Make sure you have enough free disk space on the server. It will need to be a least the size of the GL20000 table but double that would be preferable (It’s going to move all the closed year’s transactions from the Open table to the History Table so it will need some room).

3. Make sure you run the year end close for all other modules first before the GL (Once you have done the GL you cannot go back and do the others).

Complete the year end closing process for each module in the following order:

  1. Inventory
  2. Receivables Management
  3. Payables Management
  4. Fixed Assets
  5. General Ledger

4. Post your final adjusting entries for GL.

5. Print account list to verify posting type (Reports-Financial-Accounts-All Accounts). Incorrectly marked account types is one of the major causes of year end problems. You can also check the posting types using smartlists and the accounts option under Financial.

If the account’s balance is brought forward at the end of year, it should be set up as a Balance Sheet Posting Type.

If the account’s balance will be closed to a retained earnings account at the end of the year, it should be set up as a Profit and Loss Posting Type.

6. Close the last period of the financial year.

7. Run the file maintenance routines on financial series i.e. Check links.

8. Make sure Maintain History for Accounts and Transactions is marked in Setup>>Financial>>General Ledger. (If you want to keep history records.)

9. Do a second of backup your company and DYNAMICS databases.

10. Print a final detailed Trial Balance, Reports>>Financial>>Trial Balance

11. Print final Financial Statements.

12. Setup a new fiscal year (Setup>>Company>>Financial Periods)

13. Make sure the Retained earnings account is populated. (Routines>>Financial>>Year end closing).

14. Using the Year-End Closing window, enter the starting journal entry number that will be used as the first journal entry number in the New Year or accept the default.

15. Close the year, use the Close Year button in the Year-End Closing window.

16. Close any periods for the New Year you do not want people posting to.

17. Adjust budget figures for the new year (remembering to budget for your upgrade to 2010) and print financial statements.

18. Do a third and final backup your company and DYNAMICS databases.

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