Year-end closing in Microsoft Dynamics GP isn’t just another task—it’s the cornerstone of accurate financial reporting and compliance. Whether you’re a seasoned user or tackling year-end for the first time, a solid plan ensures success. In this guide, we’ll walk you through best practices, frequently asked questions, and actionable insights to close the year like a pro.
Why Year-End Closing in Dynamics GP Matters
Year-end processes impact everything from tax reporting to payroll accuracy. Dynamics GP offers robust tools for managing year-end activities, but knowing how to navigate these efficiently is critical. Our team at Njevity is here to help you optimize this process with expert tips and strategies.
Step-by-Step Year-End Closing Checklist
Current Year Closing Steps published by Microsoft
Each year Microsoft publishes a year-end blog series that shows the exact steps needed to close each module. This is a great resource to get the latest details. Check out the blog series.
Payroll Closing Best Practices
Preparation is key. Before creating the year-end wage file, complete these steps:
1. Finish all payrolls for 2024
2. Print quarterly 941 reports and reconcile them with payroll summaries.
3. Generate FUTA, SUTA, and other state-specific payroll reports.
4. Ensure FUTA, SUTA, and state wage amounts match your 941 forms.
5. Create the Year-End Wage file and compare the numbers to the reports above.
Electronic Filing Steps
1. Register with the Social Security Administration (SSA) and obtain a user ID.
2. In Dynamics GP, go to Tools > Routines > Payroll > W-2 Electronic Filing.
3. Complete the submitter form and specify the file location for the W-2 text file.
4. Upload the text file to the SSA’s Business Services Online (BSO) portal.
1099 Processing in Dynamics GP
Switch to the original report format:
1. Go to Administration > Setup > Alternate/Modified Forms and Reports.
2. Select your user ID and choose Reports > Purchasing.
3. Select 1099 Miscellaneous or 1099 Non-Employee Compensation, then select the original format.
Note: Dynamics GP doesn’t have built-in electronic filing for 1099s, but you have options:
• Use the IRS FIRE system for direct submission.
• Leverage third-party tools like W-2 Mate or Aatrix for easier processing.
Our Best Tips: Modules (subledgers) and General Ledger
One of the most common year-end questions is what order we should close the modules in. To best avoid errors, follow this sequence:
1. Close submodules in Inventory, then Sales and finally Purchasing.
2. Address Project Accounting if applicable.
3. Complete Fixed Assets processing.
IMPORTANT: You can’t undo the Fixed Assets year-end closing process so make sure you have all fixed assets tasks completed prior to closing.
4. Review Analytical Accounting steps and scripts if applicable.
5. Finalize the General Ledger.
a. Post all transactions possible.
b. Verify the posting account types before closing.
Njevity is your Partner for Dynamics GP Year-End Success
Year-end closing doesn’t have to be overwhelming. At Njevity, we’ve supported Microsoft Dynamics GP users for over 20 years, offering tailored solutions, training, and expert guidance. Whether you need help with payroll processes, 1099s, or leveraging tools like Management Reporter, we’ve got you covered. Simply email support@njevity.com and we’ll help you close your year easily!
FAQs to Simplify Year-End Processes
Yes, with proper permissions, you can reopen closed periods or fiscal years.
Yes, you can post back to the last closed fiscal year. This means you can close the GL before you’ve finalized processing for that year. Just make sure you are finished processing for the year prior to that (in this case finalize 2023 before closing 2024).
Absolutely! Dynamics GP integrates seamlessly with Power BI for advanced reporting.
Closing GL is how the beginning balances are populated for reporting. But you can configure Management Reporter to do that calculation for you if you need beginning balances before you’re ready to close the GL.