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Dynamics GP Year-End Tipsand Tricks

Presenter: Mary LenehanClient Account Manager21 years experience with Dynamics GP13 years at Crestwoodmary@crestwood.com847-232-8282

Agenda Dynamics GP - Product Life Cycle Year-End Closing Preparation Year-End Closing Sequence Closing Procedures for Each Module: Sales Order ProcessingPurchase Order ProcessingInventoryReceivables ManagementPayables ManagementFixed AssetsGeneral LedgerPayroll

Dynamics GP – Product Life CycleProductLifecyclestartMainstream ExtendedSupportSupportEndsEndsDynamics GP 2016Dynamics GP 2016 R2Dynamics GP 2018Dynamics GP 2018 1/11/2028

Year-End Update – released 11/20/2020 Year End Updates Only for GP 2016 and 2018 (which will take you to 18.3 released Oct 2020) No W-2, W-3 or W-4 Form Changes There are large ACA 1095 form changes, if you are going to print ACA in GP, you needthe update installed The blog series is out for 2020 Year end Note: No updates for GP 2016 past 7/2021 - need to upgrade before 2021 yearend if you are on payroll

What are 1099 NEC and 1099 MISC? New form for 2020 - 1099-NEC – Non-Employee Compensation Moves Box 7 from 1099-MISC to a separate 1099-NEC. All other boxes are rearranged on the 2020 1099-MISCMicrosoft has released the new 1099-NEC and 1099-MISC forms ONLY for those onGP 2016 and GP 2018 Year-End Update (released November 20,2020)

Choices to print 1099-NEC and 1099-MISC If you are on GP 2016 or GP 2018, you can apply the year end update - contact yourpartner ASAP because this is a very busy time – about 2-8 hours Arrange with Greenshades to use their products to pull data from you GP 2013-2018system into their portal and print or have them print and mail your 1099s and fileelectronically for you – do this ASAP as they are very busy – cost -end-how-to-get-ready-for-w-2-and1099-forms/ Purchase the Crestwood 1099Xport tool for 550 to pull the information into a CSV filethat you can import into any of commercially available 1099 packages – some can fileelectronically for you 1099-MISC and -NEC Changes: Immediate Action Steps for GPUsers (crestwood.com) Create a SmartList Builder or Designer report to pull this information and export toExcel to import into a 1099 package – about 2-4 hours

GP 2018 Year End Update Changes If you apply the year end upgrade for GP 2018, you will be upgraded to GP October 2020Release and that puts you on Modern Lifecycle. Modern Lifecycle blog, #4 MS willsupport each GP release through 2024 for 2 years. Need to commit to taking an update atleast every 1-2 years. More like a service pack. We are upgrading our clients to theOctober Release since it came out. Going well.October 2020 Release New features: Release blog with what is changed and links to download -released Year end blog series all you want to know about 2020 Year end s-schedule

GP Modern Licensing

Year-End Closing Preparation Proper Planning – Schedule Appropriately Evaluate Procedures and Future Needs BACKUP YOUR DATA – make sure your automatic backups are working and youhave storage in the cloud Timing and Date Sensitivity File Maintenance - Optional Perform Data Cleanup Tasks Remove or Archive History Inactivate or delete accounts, vendors, customers, items, employees Run the Reconcile Procedures in the following Order Sales Order Processing Purchase Order Processing Inventory

Year-End Closing Sequence Sales Order Processing – no year-end close process Purchase Order Processing – no year-end close process Inventory Control Receivables Management Payables Management Fixed Assets General Ledger Payroll Calendar Year-End

Sales Order Processing If you performed Period End Procedures, no additional steps are required Period End Procedures Reconcile Sales Documents Remove Completed Sales Documents Print Reports as needed SOP Document Analysis Report SOP Inventory Sales Report Sales Transaction History/Sales Serial/Lot History, if applicable

Purchase Order Processing If you performed Period End Procedures, no additional steps are required Period End Procedures Reconcile Purchasing Documents Remove Completed Purchase Orders Print Month-End Reports Received/Not InvoicedPurchase Order StatusShipment/Invoice Matching ActivityReceivings Transaction History

Inventory Control Post All Transactions for the Fiscal Year Reconcile Inventory Quantities Complete a physical inventory count and post adjustments Print Additional Reports Stock StatusPurchase ReceiptsTurnoverTransaction HistorySerial or Lot Number List Make a Backup Close the Inventory Fiscal Year Close Fiscal Periods for Inventory Series

Receivables Management Receivables Management is date sensitive in certain areas. The Receivables Managementclosing process updates several tables and fields that track customer data. This isimportant for organizations that use any of the following items to track customerstatistics: The SmartList objects The Receivables Management summary reports The Amounts Since Last Close view in the Customer Summary window Therefore, to ensure the accuracy of the data displayed in the Customer SmartListobjects, the Receivables Management summary reports, and the Amounts Since LastClose view in the Customer Summary Inquiry window, we recommend that you close theyear prior to entering transactions for the new year.

Receivables Management Post all Sales & Receivables Transactions for the year Make a pre-year-end closing backup Close the year Note: If Calendar year and fiscal year are the same, select ‘All’ in Year-End Closing window. This option moves ‘Year To Date’ to the ‘Last Year’ bucket in the Inquiry Sales Yearly Summary Window Close the Sales Series fiscal periods (Optional) Close the Tax Year

Payables Management Payables Management is date sensitive in certain areas. The Payables Managementclosing process updates several tables and fields that track vendor data. This is importantfor organizations that use any of the following items to track vendor statistics: The SmartList objects The Payables Management summary reports The Amounts Since Last Close view in the Vendor Summary window Therefore, to ensure the accuracy of the data displayed in the Vendor SmartList objects,the Payables Management summary reports, and the Amounts Since Last Close view inthe Vendor Summary Inquiry window, we recommend that you close the year prior toentering transactions for the new year.

Payables Management Post all Purchasing & Payables transactions for the year Print the Historical Trial Balance Report Print the Vendor Period Analysis Report Make a backup named ‘Pre-1099 Edits’ Verify the 1099 Info and Edit if required – REMEMBER NEW 1099 NEC and MISC in GP 2016and 2018 only if you apply year end update Print 1099 Statements (can do anytime before or after year-end close) Make a backup named ‘Pre Year-End’ Close the Year Note: If Calendar year and fiscal year are the same, select ‘All’ in Year-End Closing window. Close the Purchasing Series fiscal periods Close the Tax Year if not already closed

Fixed Assets Perform Year-End Closing Procedures for Payables Management Enter all Fixed Asset Transactions for the current year Depreciate all assets through the last day of the current fiscal year Perform the GL Posting Routine (Optional) Print Fixed Asset Year-End Reports for the Current Year Verify the Fixed Assets Calendar Build (Optional) Verify the Fixed Assets Quarters Setup for all Fiscal Years Make a backup Perform the fixed assets year-end closing routine

General Ledger Complete the posting procedures & the closing procedures for other modules Post the final adjusting entries in General Ledger Create a SmartList to Verify the Posting Type of Each Account Close the last period of the fiscal year (Optional) Perform file maintenance on the Financial Series (Optional) Verify Settings for History & Retained Earnings Account in the General Ledger SetupWindow Make a pre year end backup

General Ledger Print a final Detailed Trial Balance report Print the year-end financial statements in FRx or Management Reporter Set up a new fiscal year Close the fiscal year Close all the fiscal periods for all the series (Optional) Adjust the budget figures for the new year & print the financial statements Make a post year end backup

Recap of KB ResourcesYear-End Closing Procedures:KB 888003 – General LedgerKB 872713 – InventoryKB 857444 – Receivables ManagementKB 875169 – Payables ManagementKB 865635 - Fixed AssetsKB 960356 – Analytical AccountingKB 850663 – US PayrollKB 861806 – Canadian Payroll

Information from MicrosoftDownload links Microsoft Dynamics GP 2018 CustomerSource Microsoft Dynamics GP 2016 CustomerSourceMicrosoft Dynamics GP DirectoryThis page offers easy access to Microsoft Dynamics GP resources. This page isintended to provide a consolidated view of relevant documentation, videos,solutions to known issues, links to related resources, as well as community sites forimplementing Microsoft Dynamics GP.

Helpful information Microsoft Dynamics GP blog: https://community.dynamics.com/gp Microsoft Dynamics community: https://community.dynamics.com/ Microsoft Dynamics orthamerica/GP/support Integrity Data blog: Prepare for Payroll Year End

Payroll Year-End Checklist Verify that you have installed the latest 2020 Payroll Tax Update (do now) Install the 2020 Year-End Update (note – this can be installed as soon as it is released; youdo not need to wait till the payroll year end close, but it must be installed prior to runningthe Payroll Year-End Close) Create the year-end file as a test Verify W-2 and 1099-R statement information Remove year-end file Complete all pay runs for 2020 Complete all monthly and quarterly payroll period-end for the current year (Optional) Make a backup of your company data labeled Pre Year-End Wage File Create the year-end file using the Payroll Year-End Close Make a backup of your company data labeled Post Year-End Wage File Print the W-2 and 1099-R Validation Reports

Payroll Year-End Checklist Print/e-mail the W-2 statements and the W-3 Transmittal formCreate an Electronic W2 file (Optional)Print the 1095-C statements and the 1094-C Transmittal formPrint the 1099-R forms and the 1096 Transmittal formArchive inactive employee Human Resources information (Optional)Create the Human Resources attendance period schedules for the new yearSetup 2021 fiscal periodsEmail W-2’s to employeesClose the 2020 fiscal periods for the Payroll serieswith Employee E-mailUpdate 2021 payroll tax tablesSuite from Integrity DataStart processing 2021 payrolls

2021 Tax table updatesTax table updates (subject to change)(Round 1 release date late December 2020)(Round 2 release date mid-January 2021) FICA Social Security limit 142,800 States changes: TBDDon’t apply this update until afteryour last payroll of 2020!

2020 Tax Filing DatesFebruary 1, 2021 (Monday):W-2s, EFW21099s1095-Cs to employeesMarch 31, 2021:ACA e-filing to deadline to IRS

COVID-19Employee Optional Tax Deferral Tax to be recouped from employees between January 1-April 30, 2021 Deferred amount reported on Form 941 lines 13b and 24 W-2 Reporting in Box 3 No Update to Dynamics GP Blog post with more details and links to workaround: Executive Order Payroll TaxDeferral- Here's What We Know - Integrity Data (integrity-data.com)

Benefit self service checklistBenefit Self Service year-end process Create future effective benefitsOpen enrollment periodReview enrollmentsComplete final pay of 2020Activate future effective benefitsPost enrollmentsReview benefitsBegin processing 2021 payrolls