October 30, 2009

gptip42day - Purchase Order Receipt Tolerance


Do you wonder why GP allows you to over-receive against a PO?  So do the rest of us.  In my opinion, this is a shortcoming that is basic to exercising adequate control over the purchasing process. 

However, if you do need that functionality in your business, Microsoft Business Solutions (MBS) Professional Services, does offer a customization (at a fairly nominal cost) they call 'PORECTOL', or PO Receipt Tolerance.  This easy-to-install customization provides the ability to set a tolerance for excess receipts against your POs.  You can choose a zero tolerance or some reasonable low tolerance which prevents receiving in excess of the tolerance you set.

For more information, contact MBS Professional Services through your GP Partner.

October 29, 2009

gptip42day - Unable to Perform Cost Rollup


Here's a good one for you, gang.  If you're using GP Manufacturing and you ever restore one database over another - for example, if you're setting up a new company, run these scripts on the new company -

Select * from COSS0401
Select * from MOPS0100
 
COSS0401 is the Costing Setup Table.  MOPS0100 is the Manufacturing Order Preferences  table.
 
If there is more than one record in either of these tables, you must remove the incorrect one, i.e., the record that has the incorrect Company ID in the first column of the tables.  To verify which company ID relates to which database, check SY01500 in the DYNAMICS database.
 
This condition will throw a 'Subquery returned more than one value' error when you try to do a cost rollup from within either the Standard Cost Changes window or via the 'Rollup and Revalue' Routine in Manufacturing.

Apparently, when a company is restored into another company, the MFG setup tables do not get updated with the new company ID (they still have the old company's ID and running the company restore script does not update them). Then when you go into the MFG setup windows, another row is added to these tables with the new company ID.

October 28, 2009

gptip42day - Suppress Change Date Dialog


You know the dialog box that appears when you stay logged in overnight asking if you want to change the user date?  This is known as the 'Change Date Dialog Message'.  This message is created by the system at midnight.  I'm not sure why GP doesn't just automatically increment the date by one day at midnight but this message box can cause issues if you have integrations or other automated processes scheduled to run overnight on that particular workstation.


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It's easy to turn this message off in the Dex.ini file.  In GP10, this file is in the GP>Data folder.  In GP9 and prior versions, it's in the GP folder. 

Open the Dex.ini file in Notepad.  Scroll down the contents of the file until you find 'SuppressChangeDateDialog'.  The default setting is 'FALSE'.  Change the setting to 'TRUE'. 


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Save the Dex.ini file.  The message wil now be suppressed and not interfere with your overnight processes.

October 27, 2009

gptip42day - Account Framework


Just a tip to remind you that if you or your consulting team are installing a new instance of GP, make sure you allow for expansion in your account segments.  I have a client that wants to change their accounts from a 3-segment to a 4-segment number to add a division code at the beginning of the number.  Unfortunately, the consultant who set the account framework at installation 2 years ago didn't allow for expansion in the account segments.  See below -

Tools>Setup>Company>Account Format


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Currently, the Main segment is the first segment of the account, which has a Max Length of 4 characters.  However, we want to make the first segment the Division code and the second segment the Main segment.  Note that the Max Length in the second segment is 3, and we need 4 characters for the Main segment.   The Max Length is set during account framework setup and can't be changed without using either the PSTL Account Modifier or Corporate Renaissance Group's Reformatter, neither of which comes free.

Making the Max Length in each segment longer during initial framework setup would have prevented this.  It would have just been a matter of setting the segment length to the desired values.

October 26, 2009

gptip42day - Understanding Inventory Unit of Measure


Let's make this really simple.  Say your company buys and sells automotive shock absorbers.  You stock them as 'EACH', buy them by the 'DOZEN', and sell them in 'PAIRs'. 

Stocking UOM = EACH
Purchasing UOM = DOZEN
Selling UOM = PAIRs

Here are the UOM Schedules for shock absorbers -

EACH


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DOZEN


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PAIR


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Note the 'Equivalent' in each Schedule.  This is the key to GP making correct UOM conversions.

Now, you issue a Purchase Order for 10 DOZEN shock absorbers.  When the receiving transaction is posted, GP automatically converts the 10 DOZEN to 120 EACH shock absorbers and increases inventory on hand by 120.

Next, you enter a Sales Order for 5 PAIRs of shock absorbers.  When the order is fulfilled and/or invoiced, GP automatically decreases inventory and charges Cost of Goods Sold for 10 shock absorbers.

Just remember that the 'Base' Unit of Measure is the UOM in which the item is stocked and that UOM is what gets entered in the Item Card.


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It's really just that simple.  Of course, you can set up as many UOM Schedules as necessary.  GP will do the conversions for you.

October 23, 2009

gptip42day - Customer Items


If your company is a heavy user of Sales Order Processing (SOP) and has Customers that place repeat orders which list their Item Numbers and not yours, GP provides a simple, easy to setup, and efficient method to speed up the order entry process – Customer Items.

For example, your Customer calls an item a ‘USB/PS2’, but you call the item in your inventory a ‘123XYZ’. You can setup a cross-reference relationship between your item number and the Customer’s item number. When you enter a Quote, A Sales Order, or an Invoice for the Customer, and type USB/PS2 in the Item Number field, your item number 123XYZ is inserted and displayed in place of the customer item number. This process eliminates the need to perform a manual conversion of your Customer’s item number to your item number prior to entering the order, thus reducing man hours expended in a non-value-added activity.

Let’s say you process 100 Sales Orders a day, 5 days a week, 52 weeks a year. That’s 26,000 Sales Orders annually. If you can save just 30 seconds an order, that’s a savings of 217 hours a year or the equivalent of a month and a quarter of an employee’s time that can be better spent in more value-added activity.

A further benefit of utilizing the Customer Item functionality is the ability to setup a Substitute Item in the event of a stock-out situation or a special promotion.

Suppose you’re offering a particular chair on closeout, but due to popularity, your inventory is sold out before the sale is over. You can substitute a replacement chair rather than back ordering the chair that is on closeout.

You can choose to setup Customer Items in conjunction with Substitute Items or use either of the features independent of each other.

The setup for Customer Items and/or Substitute Items is very simple and straightforward –

Cards >Sales >Customer Items


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1. Open the Customer Item Maintenance window.

2. Enter or select a Customer and an Item Number.

3. Enter the item name that the Customer uses. When you create a sales order and enter the Customer Item, your inventory Item Number will be displayed.

4. If desired, enter a customer item description, short name, and generic name.

5. If desired, enter additional information in the text fields.

6. To assign a Substitute Item, enter or select an item to substitute for the item displayed in the Item Number field.

7. Enter a date range for Substitute Item effectivity. This date can also be used to remove Customer/Item Substitute records in the Remove Customer/Item Substitutes window.

8. Choose Save.

If your Customers require their Item Number or both Item Numbers to appear on sales documents, you can modify your sales documents to pull both numbers and descriptions into the documents.

That’s all that’s required to setup your Customer Items and begin realizing the cost saving benefits of another great Dynamics GP feature.






October 22, 2009

gptip42day - Sales Order/Invoicing Message


Have you ever seen the following message when entering an Invoice or Sales Order document?


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What is it, why does it appear, and how do you get rid of it?

This message appears because both the GP Invoicing module and Sales Order Processing modules are registered in your GP installation.  Companies who don't use the SOP module need a way to invoice customers.  The Invoicing module gives them that capability.  However, companies using the SOP module do not need the Invoicing module, so GP provides a warning stating that both modules are registered and that you should use one or the other module for your invoicing because the two modules don't share information - i.e., they use different invoice numbering sequences, you can't look up an SOP document in Invoice Inquiry and vice versa, etc. 

It would make sense for the Invoicing module to be automatically disabled if SOP is registered but such is not the case.

Therefore, GP provides a utility to eliminate the warning message when opening either the Sales Transaction Entry window, the Invoice Entry window, or both.

Your GP administrator can login to GP Utilities and process these instructions -


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Clicking the 'Process' button opens this window -


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Here, you can choose to have the warning appear when the Sales Transaction Entry window is opened, when the Invoice Entry window is opened, both, or neither.  I recommend removing the message in SOP but leaving it in Invoicing to help insure that users enter their SOP transactions in the SOP window.

Of course, you could always take another approach and remove security access to the Invoicing windows altogether, thereby eliminating the chance that a user will mistakenly use them.

October 21, 2009

gptip42day - Default Sales Transaction Type


Are you annoyed that every time you want to enter an invoice in the Sales Transaction Entry window, you have to manually change the Transaction Type?  Here's how to avoid that annoyed . . .

Tools>Setup>User Preferences (GP9 & Previous)
MDGP>User Preferences (GP10)


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Set the Default Sales Doc Type to 'Invoice' and there you go.  Note that this setting is by user, not global.  This allows each user to determine the Sales Doc Type that works best for them.

October 20, 2009

gptip42day - FRx Security


Here's another FRx tip, courtesy of one of the GP forums.  When setting up security in FRx, make sure that the usernames and passwords in FRx match GP usernames and passwords EXACTLY.  The reason for this is that FRx has its own security module that does not communicate with GP security.  When using FRx security, there are actually two validations that occur - one in FRx and one in SQL.  If the FRx username and password isn't exactly the same as the GP credentials, access to SQL will fail because SQL access is granted via GP credentials.

Also, if a GP user changes their username or password in GP, you must manually update their FRx credentials to match or SQL validation will fail the next time they try to login to FRx.

This isn't an issue if you're not using FRx security because the only validation that occurs in that case is the SQL validation, which uses the GP credentials.

October 19, 2009

gptip42day - Restricting FRx Row Results to Specific Columns


Let's say you have a statistic, perhaps 'Employee Headcount' from a unit account that you want to appear on your FRx Profit and Loss Statement but you want the headcount to appear in only one column, not in all the columns on the report.  Here's how to set that up -


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Placing the column in which you want the headcount to appear in the 'G' Column of the report Row Format tells FRx that you want that data to appear only in that column.  If you want the data to appear in multiple columns, enter those columns separated by commas, i.e., C, G, J.

October 16, 2009

gptip42day - 1099 True-Up


And speaking of 1099s, how do you verify that the correct 1099 amount is reported for your vendors?  Here's how -

1.  Using the canned '1099 Vendors' SmartList, add the '1099 Amount YTD' and 'Amount Paid YTD' columns and compare those two amounts.  (Save the SmartList as '1099 True-Up' or something similar so you'll have it for next year.)  If the amounts are different, you need to update the 1099 Amounts.  The most likely reason for the difference is that when the Vendor was initially setup, it was setup as 'Not a 1099 Vendor' and then later was switched to one of the 1099 Tax Types.

(SmartList>Purchasing>Vendors>1099 Vendors)


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2.  In GP10 -

Cards>Purchasing>1099 Details


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Select your Vendor, the Tax Type and whether to display Month or Year totals.  This allows you to update the 1099 amounts, by Tax Type, by 1099 Box, by Month or for the entire Year.  Once updated, click Save.

3.  In GP9 and prior versions -

Cards>Purchasing>Summary>Period or Yearly


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GP9 and prior versions don't provide the ability to update by Tax Type or 1099 Box as GP10 does.  However, you can still update the overall 1099 amount by Period or Yearly, whichever is appropriate.  After updating the amount(s), click Save.

After you've trued up your 1099 amounts, you're ready to print accurate 1099s for your Vendors.

October 15, 2009

gptip42day - Electronic 1099, W2 Filing


I'm not sure if this technically qualifies as a GP tip but as we're nearing calendar year-end, I think it's appropriate.  One of my pet peeves with GP is that 1099 and W2 production and filing is not friendly at all.  Especially frustrating is the fact that GP doesn't create the 1096 or W3 forms that need to accompany 1099s and W2s sent to the IRS.  Well, all is not lost.  There are a couple of companies out there that can fill that gap.

These products not only create all the documents needed for complete filing of 1099s and W2s, they also provide e-filing capabilities to really take the work out of filings.  In addition, one of the companies offers e-filing of 940s, 941s and more.

This tip does not imply endorsement of these products.  It's purely informational.  To find out more, follow these links -


Until tomorrow . . .

October 14, 2009

gptip42day - SmartList GoTo


It's a pretty safe bet that anyone who uses SmartList knows that you can double click any record in the results pane and drill into the underlying document.  However, did you know you can use the Go To button to access windows other than the default window?

Here's how - SmartList provides a number of related windows that are available by clicking on the Go To button in the upper right corner of the SmartList window.  For instance, look at all the other windows available for Receivings Line Items. 


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SmartList is a great jumping-off point for data inquiry and transaction processing.  Before GP10 and its Lists, I used to advise clients that they might want to use SmartList as their primary navigation tool for daily GP tasks.

October 13, 2009

gptip42day - Automatic Credit Hold


Here's a question that popped up on one of the GP forums the other day.  'Is it possible to automatically put a customer on SOP process hold if an order exceeds their credit limit?'.  The answer is yes and here's how you do it.

1.  Setup a Credit Process Hold disallowing transfer or posting of the order document.

Tools>Setup>Sales>Process Holds


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2.  In the Sales Order Processing Setup window, choose the Order ID to assign the Hold to and enter the Hold in the Credit Limit Hold ID field.

Tools>Setup>Sales>Sales Order Processing>Sales Document Setup>Order


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3.  In the Receivables Management Setup window, remove the 'Exceed Credit Limit' password.

Tools>Setup>Sales>Receivables


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Now, when you enter a sales order that exceeds the customer's credit limit, a Process Hold will be placed on the order when you save it.  Transferring the order to an invoice will be prevented by the Hold unless you provide a password to override it.  The Hold on the order is signified by the Stop Sign on the Holds button.


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October 12, 2009

gptip42day - MACRS Depreciation in GP


A question I run into rather regularly from users is 'Where do I enter the MACRS tables?'.  Well, the short answer is, you don't.  GP doesn't utilize MACRS tables for calculating MACRS depreciation.  Instead, it uses a combination of the many different depreciation methods and averaging conventions available in GP to simulate MACRS.

Now, for those of you asking, 'What the heck is MACRS?, the short answer is, can you spell IRS?  MACRS stands for Modified Accelerated Cost Recovery System, allows for accelerated writeoff of capital (Fixed Asset) costs, was passed into law in 1986 as part of the Tax Reform Act of 1986, and is still in force today.

Now, with that as a little background, let's keep this extremely simple.  Suffice it to say that by using the 200% Declining Balance depreciaiton method, Half-Year Convention, and a switch to Straight Line depreciation when advantageous, GP simulates MACRS depreciation.  Please see the chart below -


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As you can see, in this example, this combination of depreciation settings results in the same depreciation as the MACRS percentages.  There are some cases (assets with longer lives) where the GP depreciation may be off by a few dollars at the end of the asset life but it's close enough for government work.

Here's what the depreciation settings look like in the Asset Book window -


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To prove this method, you can run your own tests by setting up a few assets with different lives, run Depreciation Projections (Tools>Routines>Fixed Assets>Projection), and compare the results to the numbers you would get using the MACRS percentage tables, below.


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Happy depreciating!

October 9, 2009

gptip42day - Year-End Close - Financial


Okay folks, here we are.  We closed the other modules earlier this week and it's time to close the Fiscal Year in Financials.  Here's what this process does -

- Transfers all current-year information for each account in the chart of accounts to account and transaction history and prepares the General Ledger for a new fiscal year.

- Reconciles and summarizes the General Ledger balances that have accumulated throughout the year.

- Transfers open-year profit and loss amounts to the Retained Earnings account.

- Zeros all profit and loss account balances after they’ve been closed to the Retained Earnings account.

- Summarizes balance sheet accounts, bringing the balances forward as the accounts’ beginning balances in the new fiscal year.

- Brings the balance of unit accounts forward to the new fiscal year.

- Removes inactive accounts with zero balances.

- Prints the Year-End Closing Report.

Note - Until the year-end close is completed for General Ledger, you won’t get accurate financial statements for the new year. Beginning balances for the new year are not created until the year-end close process is completed. Therefore, the financial statements for the new year will reflect only current year activity until the year-end closing process is completed. This happens whether the financial statements are printed from Advanced Financial or from FRx.

In preparation to close the General Ledger –

1. Complete month-end and period-end procedures for all modules, except General Ledger.

2. Use normal posting procedures to post final transactions in all modules, except General Ledger.

3. After all transactions have been posted successfully, complete year-end procedures for all modules, in the following order: Inventory, Sales, Purchasing, and Fixed Assets. Payroll year-end procedures are independent of those in other modules, and are always performed at the calendar year-end.

4. Post final adjusting entries in General Ledger.

5. Use the Accounts SmartList to verify the Posting Type for each account. It is critically important that all balance sheet accounts have a ‘Balance Sheet’ Posting Type and all P&L accounts have a ‘P&L’ Posting Type. Make any necessary corrections to the Posting Types before closing the year. Failure to do so could result in a Balance Sheet account being closed to Retained Earnings or a P&L account not being closed to Retained Earnings. This situation is difficult to repair.

6. Verify that 'Maintain History for Accounts and for Transactions' are marked in the General Ledger Setup window. (Tools>Setup>Financial>General Ledger)

7. Check links for all Financial tables. (Maintenance>Checklinks>Financial)

8. Back up your company database.

9. Print a year-end detailed trial balance for your records.

10. Print any year-end financial statements required.

11. Set up a new fiscal year. Before you can perform a year-end closing, a new fiscal year must be set up using the Fiscal Periods Setup window. For example, if you’re closing 2009, be sure that 2010 has been created.

Tools>Setup>Company>Fiscal Periods


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To close the Fiscal Year –

1. Open the Year-End Closing window –

Tools>Routines>Financial>Year-End Closing


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2. Enter or select a Retained Earnings account to which the year’s profit or loss will be closed. If you are closing to divisional Retained Earnings, enter or select one of the divisional Retained Earnings accounts.

3. Accept the next journal entry number or enter a new one to be used as the first journal entry number in the next fiscal year.

4. Mark the 'Remove Unused Segment Numbers' option if you want to automatically remove account segment numbers that are not used in any account.

5. Click 'Close Year' to begin the closing process. Note - If the progress window seems to stop at 50%, don’t try to close Microsoft Dynamics GP or restart the computer as this could corrupt your financial data. As long as your hard drive is processing, let the process continue.

6. When closing is complete, the Year-End Closing Report is printed. This report lists the accounts that have been closed and the transactions created to close them. The Year-End Closing Report is part of the audit trail and should be saved with your company’s permanent records.

7. Print a final year-end trial balance.

8. Make a final backup of your company database and archive it.

If you need to post transactions after the fiscal year is closed, refer to ‘Posting to a historical year in General Ledger’ in GP Help. GP allows you to post transactions to the most recent historical year. Should you ever need to post to an older historical year, contact MBS Professional Services through your Microsoft Partner.

And there we have it.  We've successfully closed the Fiscal and Calendar Years in GP!

Have a great weekend all.




October 8, 2009

gptip42day - Year-End Close - Fixed Assets


Closing Fixed Assets for the year increases the current Fiscal Year by one year for each book being closed and changes the Year-to-Date Depreciation Amount and YTD Maintenance Amount fields to zero.  The following fields are also updated when closing FA -


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To close the FA Fiscal Year -

1.  Backup your company database.

2.  Open the Asset Year End window -

Tools>Routines>Fixed Assets>Year End


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3.  Select each book to be closed and click 'Insert'.

4.  Click 'Continue'.

5.  Click 'Continue' again and close the window.

That's it.  Pretty simple huh?

October 7, 2009

gptip42day - Year-End Close - Purchasing


Closing the Fiscal Year in Purchasing updates the Year-to-Date, Last Year, and Life-to-Date information in the Vendor Credit Summary and Vendor Yearly Summary Inquiry windows.

Closing the Calendar Year transfers Year-to-Date 1099 amounts to the Last Year balance in the Vendor Yearly Summary Inquiry window for all vendors.

In preparation to close the Fiscal Year -

1. Post all transactions for the current Fiscal Year. If you need to enter transactions for a future period before closing the year, save the transactions in a batch but don't post it until after closing the Fiscal Year.

2. Backup the company database.

3. Print an Historical Aged Trial Balance as of the last day of the Fiscal Year. Keep this report for your records.

4. Close the Fiscal Year. If your Fiscal and Calendar Years coincide, choose the 'All' radio button in the Year-End Close window. If not, choose the 'Fiscal' radio button. Click 'Close Year'.

Tools>Routines>Purchasing>Year-End Close


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5. Close the Fiscal Periods for the Purchasing series (optional). Tools>Setup>Company>Fiscal Periods.

6. Close the sales tax periods for the year (optional). When you close the Tax Year, accumulated totals in the Tax Detail Maintenance window are cleared and transferred to last year's tax totals. (Note - you should close the Tax Year only after both Sales & Purchasing series are closed.)

Tools>Setup>Company>Tax Details


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Year-to-date tax totals can then be added for the new Tax Year. Tax amounts entered after closing the Tax Year are added to the new year's totals.

Tools>Routines>Company>Tax Year-End Close


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Refer to GP Help for further information on the effects of closing the Tax Year.

7. If your Fiscal and Calendar Years do not coincide, close the Calendar Year at calendar year-end. Post all Calendar Year transactions, backup your company database, then choose the 'Calendar' radio button and click 'Close Year'.

Tools>Routines>Purchasing>Year-End Close


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8. Make a final backup of your company database.

Tomorrow we'll look at closing the Fixed Asset series, then on Friday, the Big One - Financials!

October 6, 2009

gptip42day - Year End Close - Sales


Closing the Fiscal Year in Sales updates Year-to-Date, Last Year, and Life-to-Date information in the Customer Payment Summary window and Customer Yearly Summary Inquiry window.

Closing the Calendar Year does not affect amounts in those windows but does update information in the Customer Finance Charge Summary window.

In preparation to close the Fiscal Year -

1.  Post all transactions for the current Fiscal Year.  If you need to enter transactions for a future period before closing the year, save the transactions in a batch but don't post it until after closing the Fiscal Year.

2.  Backup the company database.

3.  Perform a Receivables Aging (Tools>Routines>Sales>Aging) and print an Historical Aged Trial Balance as of the last day of the Fiscal Year.  Keep this report for your records.

4.  Close the Fiscal Year.  If your Fiscal and Calendar Years coincide, choose the 'All' radio button in the Year-End Close window.  If not, choose the 'Fiscal' radio button.  Click 'Process'.

Tools>Routines>Sales>Year-End Close


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5.  Close the Fiscal Periods for the Sales series (optional).  Tools>Setup>Company>Fiscal Periods.

6.  Close the sales tax periods for the year (optional).  When you close the Tax Year, accumulated totals in the Tax Detail Maintenance window are cleared and transferred to last year's tax totals.  (Note - you should close the Tax Year only after both Sales & Purchasing series are closed.)

Tools>Setup>Company>Tax Details


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Year-to-date tax totals can then be added for the new Tax Year.  Tax amounts entered after closing the Tax Year are added to the new year's totals.   

Tools>Routines>Company>Tax Year-End Close


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Refer to GP Help for further information on the effects of closing the Tax Year.

7.  If your Fiscal and Calendar Years do not coincide, close the Calendar Year at calendar year-end.  Post your Calendar Year transactions, backup your company database, then choose the 'Calendar' radio button and click 'Process'.

Tools>Routines>Sales>Year-End Close


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8.  Make a final backup of your company database.

Tomorrow we'll look at closing the Purchasing series, a process which is very similar to the Sales series close.

October 5, 2009

gptip42day - Year End Close - Inventory


Closing an Inventory Fiscal year transfers summarized current-year information to history. You can also choose to remove Discontinued Items, Sold Lot Attributes, Sold Receipts and Cost Change History, and change your Standard Costs to prepare for the new year.

Be aware that changing Standard Costs DOES NOT create a financial batch to reflect the inventory valuation change in your general ledger. This entry must be prepared manually by referring to pre- and post-close Stock Status reports to determine the valuation change.

In preparation for closing the year –

1. Enter and post all transactions for Sales Order Processing, Invoicing, Purchase Order Processing, Inventory Control, Bill of Materials, Project Accounting, Field Service, Manufacturing - any transaction that might affect inventory.

2. If needed, complete a Stock Count, then enter and post any adjustments.

3. Print the following reports for your permanent records.


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4. Make a complete backup of your company data.

5. Open the Inventory Year-end Closing window.

Tools>Routines>Inventory>Year-End Close


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6. Choose records to remove. You can remove records for discontinued items, sold lot attributes, and sold receipts and historical cost changes, as needed. For more detailed information on these items, refer to GP Help.

7. To update Standard Costs for items with FIFO Periodic or LIFO Periodic valuation methods, check 'Item’s Standard Cost'.

8. Click ‘Process’ to close the year.

Note - While the year-end closing is in process, you won’t be able to post transactions or batches, reconcile quantities, change valuation methods, or change decimal places. If you attempt to begin one of these procedures, an alert message will appear, warning you that you must wait until the year-end closing process has been completed.

9. After you’ve closed the year, you should make a final backup of your company data.

The effects of closing the year in Inventory are as follows –

- All summarized current-year quantities, costs, and sales information of items you’ve been keeping summarized sales history on are transferred to transaction history.

- The Beginning Quantity of each item is updated from the On Hand quantity at each site. (Some reports—such as the Turnover Report—use the beginning quantity field in calculations.)

- The Quantity Sold field for each item is reset to zero.

Depending on the selections made in the Inventory Year-End Closing window, these tasks might also be accomplished –

- Purchase receipts of items that have been completely sold are removed.

- Cost change history information is removed.

- Discontinued items that have been completely sold are removed.

- Lot attributes of items tracked by lot numbers that have been completely sold are removed.

- Standard Costs are updated from the value in the Current Cost field for items using FIFO or LIFO Periodic valuation method.

Note again, that updating Standard Costs DOES NOT create a financial batch. Print a pre- and post-close Stock Status report to determine the valuation change. Then create a manual journal entry to post the difference.

Tomorrow we'll look at Closing the Sales year.

October 2, 2009

gptip42day - Year End Closing Procedures


I was going to wait until nearer the end of the year to discuss this topic but a very good friend of mine at Kissimmee Utility Authority asked me to cover the topic now as their fiscal year ends September 30.  We'll cover these procedures over the next few days because it's too much to cover in one post.  So here we go with an overview for today's installment.

First, it's important to know that the only series in GP that has a true year-end close is the Financial series.  Closing the year in all other GP series' only updates annual statistics for the year being closed and clears the annual statistic accumulators for the coming year.

These series in GP have a year-end close routine associated with them -

-  Financial (the big one)
-  Sales
-  Purchasing
-  Inventory
-  Fixed Assets
-  Payroll

Other series, such as Project Accounting, Manufacturing, Field Service, Returns Management, etc., do not have a year-end close routine, although they may have routines that you want to run at year end.  For instance, Manufacturing has a 'Roll-up and Revalue' routine that resets standard costs to prepare for the new year.  However, it's a routine that can be run anytime during the year that you wish to reset standards, so it doesn't qualify as a year-end closing process.

We should mention here that in the Sales and Purchasing series' there are two types of year-end close (actually 3, if you include the Tax Year close), the Fiscal Year Close and the Calendar Year Close.  In many companies, the fiscal and calendar years coincide, so the fiscal and calendar year closing will be done simultaneously.  However, in those companies (go KUA!) that have a fiscal year that does not end on 12/31, the two closes will be done separately.  We'll discuss the differences in those closes in more detail later.

GP Help recommends closing the series in the following order -

-  Inventory
-  Sales
-  Purchasing
-  Fixed Assets

and then the Financial series last.  Payroll is an independent close that creates a file of annual wage information from which (in the U.S.) W2 and 1099 statements are produced.  The Payroll close will always be done at the end of the calendar year.

Okay, now that we have the overview out of the way, on Monday we'll start with closing Inventory.  By the end of next week, we'll have a bunch of year-end close experts on our hands.  Have a great weekend, friends!

October 1, 2009

gptip42day - Customer/Vendor Consolidations


If you're on GP's Advanced Management licensing, then you have access to the Customer/Vendor Consolidations functionality which eases payment processing when you have a Customer who is also a Vendor.

But, what if you're on GP's Business Essentials licensing or an older version of GP, which does not include Customer/Vendor Consolidations?  Here's a straightforward way to process those payments.

Let's say CV, Inc. is a vendor and also a customer.  Your company has purchased $100k in inventory from CV, Inc. and you in turn have sold $20k in product back to CV, Inc.  You want to settle the accounts with one payment transaction.  So, you cut a check to CV, Inc. for $80k, the net amount due them.  That leaves a balance in Accounts Payable of $20k due to CV, Inc. and a balance in Accounts Receivable of $20k due to you from CV, Inc.

To clear those remaining balances, it's simply a matter of creating a credit memo in AP for the remaining $20k but instead of crediting the purchases account, I recommend creating a Customer/Vendor Clearing balance sheet account and crediting it for the $20k.  Then, create a credit memo in AR and instead of debiting a revenue account, debit the Customer/Vendor Clearing account.  The debits and credits in the Clearing account offset each other.  Here's what that would look like in T-account form.


* click image to enlarge

Monitor the Clearing Account activity monthly and if there's a balance in it, you know you have a missing transaction(s) that needs to be posted.