Preparing for Year-End in Microsoft Dynamics GP
Published: October 10, 2016
This blog is part of our Customer Care series, where our experts address technical implementation and service questions across the Tribridge product portfolio to assure that customers have the support they need to optimize their solution most effectively and efficiently.
Every year it seems that year-end comes sooner and sooner and we find ourselves scrambling to get it all done while still performing our daily tasks. The good news is, there are steps that you can take right now to make the process go more smoothly in a few months.
Today, I will provide key tips for those using Microsoft Dynamics GP. Here is a little help to get you started:
- Begin verifying 1099 amounts - Print a 1099 edit list any time during the year in order to check your vendor 1099 amounts. This will assist you in determining any misclassifications that may have occurred up to that point and will reduce the amount of correction that may need to be done at the end of the year. To print the 1099 edit list - Open the Print 1099 window from the toolbar (Microsoft Dynamics GP >> Tools >> Routines >> Purchasing >> Print 1099) or from the Purchasing Page (Purchasing >> Routines >> Print 1099). Fill in the correct year and select the 1099 type. In versions prior to GP 2015, click File >> Print. In GP 2015 or higher, click the “Print” icon at the top of the window.
- Verify that all GL accounts are assigned the correct account type – This can easily be accomplished by running the Financial Accounts Smart List. To verify that the account numbers are set up as the correct posting type, filter on the account range and posting type. For instance, my balance sheet accounts are all in the 1000 to 3000 range, so I will open the search screen on the smart list and filter on "Account" Is less than" 000-4000-00 and Posting Type "Not Equal To" Balance Sheet.” This will list all accounts that should be balance sheet accounts but are something else. If you periodically run this throughout the year and make corrections, it will reduce the number of errors that come up when you make your final check before closing the year.
- Plan for year-end updates install – Year-end updates usually include any changes in tax forms and, where applicable, 1099 form changes. The update usually releases some time in November, however, it is good to plan now since it requires that all users remain out of the system while the server and all workstations are installed.
Accelerated Due Dates
We have received information that there is an accelerated due date for W-2, W-3 and 1099-MISC forms.
Changes are noted below:
- Starting in 2016, the new law requires Form W-2 wage and tax statements and Form W-3 transmittal forms to be filed with the SSA on or before January 31 of the following calendar year. Thus, W-2 forms for the 2016 calendar year will be due to the SSA by January 31, 2017, the same day that W-2 forms must be provided to employees. The extended due date for electronic filers is eliminated [I.R.C. §6071(c)].
- The accelerated due date also applies to Forms 1099-MISC reporting nonemployee compensation. Those forms are currently due to the IRS by the last day of February following the reporting year or by March 31 if filing electronically.
A new law revises the Internal Revenue Code to require employers to include an "identifying number" for each employee, rather than an employee's Social Security Number (SSN), on Form W-2 [I.R.C. §6051]. The change will permit the IRS to issue regulations requiring or permitting a truncated SSN on Form W-2.
Be sure to also check The IRS Web Site for links to all the tax forms, instructions and publications. You can search for forms and publications, explore hot topics, find information on reporting changes/requirements, and access various online tools.
If your questions are regarding taxes on the state level, the following pages on the AICPA site provide State Tax Links:
I hope these tips are helpful as you prepare for the next few busy months. If you are a Microsoft Dynamics SL user, be sure to read my colleague’s recent blog, 6 Common Questions with Closing the 1099 Year in Microsoft Dynamics SL, which provides great preparation tips as well.
Of course, if you need additional assistance as you close out the year, the Customer Care team is always here to help.