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.
We are now officially in the Holiday season which means the end of this year is near. Many, if not all of you, are making preparations for the close of the fiscal and calendar year.
Today, I’ll provide guidance on procedurally closing the year in Microsoft SL, as well as information regarding software updates that may need to be applied to your system.
Closing a Month vs. the Year
When you close the year, SL is doing much more than when it closes a month. Closing the year sets the current year and period to the first period for all modules as they are closed. In GL, it will also establish the beginning balances for the asset and liability accounts, set zero beginning balances for all income and expense accounts, as well as use the previous year’s net income closing to update the retained earnings account.
Many of the exact same functions will be performed in all other sub modules like AR and AP for Customer and Vendor Balances/History as well. One exception though is that the Project Controller module has its own closing screen. It is separate from the Closing screen in GL, but it too performs VERY similar functions for project balances.
Important to note, you do not have to close the accounting period for all modules at the same time. You can close some modules while leaving others open for remaining activity. For example, you can close the AR module and begin a new period while holding the AP module open for the previous year. The exception to this is the General Ledger, which cannot be closed ahead of the other modules.
Lastly, you will want to be aware of your Hard Close Settings in GL Setup (or other 3rd Party ISV Hard Close solutions) and how to work with and around them once the year is closed. It’s important to know these settings so you can post data accordingly.
Here are some key steps to help you plan and complete your year end close:
- Make a backup of the database that can be restored, if needed.
- Complete the posting and closing procedures for all modules just like you would for each month including: verification that all module batches and transactions are released and posted, making a point to look for “stale” batches and address them as needed; if allocations are leveraged, ensure that batches have been generated and posted; run the GL Trial Balance and Detail General Ledger reports to verify accuracy of account balances as well as balancing to sub modules; print and review financial statements.
- After verifying the accuracy of your reports and adjustments, the year-end closing process is ready to be run.
- After completing the year-end closing process, you can back up the database again. As well, you will want to ensure your beginning balances rolled forward and P&L accounts reset to 0 for the new fiscal year; signifying that the close process completed correctly.
2017 Year End and Tax Updates
Microsoft has previously announced that Dynamics SL 2011 Year End Updates will not be produced for the year-ending 2017.
The following versions of Microsoft Dynamics SL are currently covered for year end release updates:
- SL 2015
- SL 2015 CU1*
- SL 2015 CU2
All year end updates, when published, can be obtained via Microsoft CustomerSource.
*Note: There is a required hotfix for SL 2015 CU1 to accommodate FED9 deduction settings. Customer Care can assist in getting this installation scheduled. More information here.
If you find you are not on a version of SL 2015, we are have options to help stay current:
- Option 1: Upgrade to Dynamics SL 2015 CU2 which provides you with current Dynamics SL code, year-end updates and new functionality. Tribridge has put together affordable, fixed fee programs for 5 user, 10 user, 15 and 20 user systems. Combined with our Move to the Cloud promotion, we can provide you with the best in Agile Dynamics SL Functionality and will enable an "Invisible IT" environment where you no longer have to manage the hardware, software and IT infrastructure.
- Option 2: Plumbline Consulting, partnered with Tribridge, is providing fee based year-end updates, which will provide tax table updates for payroll as well as 1099 and W2 updates for SL 2011.
- Option 3: Tribridge can scope out a custom solution for exporting 1099 information, which can be then be processed through a third-party 1099 service provider.
Checklists provided by Microsoft for closing SL Modules:
Information from Microsoft on Project Series closing errors, resolutions and troubleshooting:
As always, please reach out to us for help preparing for year end in Microsoft SL. Also, you will want to check out our blog, 6 Common Questions with Closing the 1099 Year in Microsoft Dynamics SL, for additional year end help.