There are many articles that can be found detailing year-end processes in GP, but what about your month-end processes? Dynamics GP uses a ‘soft’ close concept wherein periods are not required to be closed. Further, periods can be reopened if needed. However, performing a month-end is critical to ensuring you can move forward within your system without any fear of inaccuracies.
Prior to performing any special or unfamiliar processes, it is always recommended that users have a proper backup of the system. Your system administrator should ensure backups are regularly scheduled and available if needed.
It is recommended that the month-end process start with the POP and SOP modules. One can think of both of these modules as feeder modules to Payables, Receivables, Fixed Assets, Bank Reconciliation and the General Ledger. In these modules, you should ensure all batches are posted within Series Post. Ensure all Customer Orders, Vendor Receipts and everything in between are posted. Further, within Purchasing, one should print the Received Not Invoiced report via Reports > Analysis. This report should tie to your accrued purchases.
Once the above are reconciled, one should move onto the Payables and Receivables module. For each, users should ensure all documents are properly applied, especially if multiple currencies are in use, as this will affect realized gain and loss entries. Users can check for unapplied documents by navigating to Sales > Reports > Analysis > Unapplied Documents Report. Further, users should also run the Reconcile to GL option within Financials in order to ensure these subledgers and GL match. The same routine should be performed for the Inventory module.
Once all subsidiary modules are complete, uses should close out the Financial modules. First, users should complete bank reconciliation and reconcile the Bank to the GL via the associated Financial Routine. Users can then move onto closing the Fixed Assets module. Remember to ensure Payables are closed prior to processing anything in Fixed Assets given the Payables feeds the Fixed Assets module. Within Fixed Assets, users need to double check that all additions and retirements are posted. Depreciation will need to be run and all related GL processes complete.
Within the General Ledger itself, all accruals should be posted. Only recurring batches should be left in your Series Post after the necessary transactions have been posted. The General Ledger will always be the last module to close.
Once all of the above are closed, users should mark the period as closed within the Fiscal Period Setup window in GP.
All of the above should be repeated at the end of each period. Given these are repeated processes, users should consider adding them to a Checklist within GP.
One last item for users to remember when closing the month is that transactions for a new period can be posted without closing out the prior period.
Adam MacIntosh, Manager of Client Services with WebSan Solutions Inc., a Microsoft Dynamics Partner firm.