Transcript FOR - Boyer & Associates

2010 Dynamics SL
Year End Event
December 15, 2010
Top 5 Year End Support Questions
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Where do we get year end updates?
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Log into CustomerSource
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Tax updates not out yet for Payroll Tables
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No, must close year the period option will not work.
You can post back to any period or year.
My 1099 balances are wrong, how can I fix them?
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Error 532 Date must be in an open 1099 calendar year when printing checks.
Go to AP, Processes, Close 1099 Year
Can only have two 1099 calendar years’ worth of data
Can I close just the GL period instead of closing year?
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Usually last week of December they are issued. Load them AFTER closing payroll for the year.
Can’t print AP checks with a check date of 2011?
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www.microsoft.com/customersource/downloads/servicepacks/sl10yearend.htm
Log into SL with a user that has initialize rights for vendor maintenance.
Turn initialize mode on, go to AP, Vendor Maintenance, 1099 tab will now have numbers that
are black and you can change them.
Closed payroll and now I need to do a check for 2010, can I do that?
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Yes, when you run calculation in payroll just make sure you use a check date that is in the
calendar year 2010. W2’s are based on check dates of checks.
Introduction to Closing
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Year End vs. Monthly
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Except for Tax reporting in AP an PR there technically is no difference
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In Reality there is a difference
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Accuracy of Standing Accruals
Budget Fulfillment
Covenant Reporting
Performance Reporting
Tax implications
Etc.
However, Remember we don’t have to worry about not being able to post back or
forward in all modules
Why do we have closings
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Year vs. Period
It is used to help us measure how we (as a company) are performing
It is a Snap Shot of our financial position at one point in time
What are the biggest problems at closing
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Timing/Cut-off
Reconciliations
Timing/Cut-off
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It should allow for reports to be published quick enough for
Management to react to the information before the next period
close.
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Planning for Year-End
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With an integrated system like SL we recommend closing as close
to Work Day 1 as possible
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What can be done ahead of time
Easier to Coordinate consistency between modules
Minimize problems with Cash Manager
Most important, It should be consistent period after period including
Year End.
Reconciliations
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Reconcile the Sub-Ledgers to the General Ledger
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Make sure the Sub-Ledger is correct
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AR, AP, Inventory, Cash Manager, Payroll, etc.
For Problem Sub-Ledgers consider reconciling on an interim basis
i.e. that there are no problems within the Sub-Ledger
Make sure there are no Unprocessed batches
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Don’t delay in releasing or posting batches
General Ledger
The GL should be the last module you close for the Period or Year
 Enter all Standard JE’s and adjusting JE’s
 Generate Recurring JE’s
 Ensure all sub-modules have been reconciled to the GL
 Analyze all transactions in Suspense accounts. Correct and post
 Verify all GL batches have been released and posted
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Verify all Allocations have been generated and posted
Run Trial Balance
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Review Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B,H,S,U
Assets = Liabilities
Current Year Income = Profit & Loss Statement
Run Financial Statements (look at key #’s such as Revenue, GP,
specific accts)
Accounts Payable
If you are using the Inventory module and the Purchasing module then you need to
coordinate AP closing with Inventory
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Ensure all available Supplier’s invoices have been entered
Verify recurring batches have been generated and posted
Verify all batches have been released and posted
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Review Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B,H,S,U,K and R
Verify Vendor Trial Balance agrees with Vendor Aged Report
Verify Vendor Trial Balance agrees with the General Ledger Trial
Balance. If not then:
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Was a reconciliation completed last period
Run a Detail GL for the AP account(s) and look for transactions that did not
originate in AP (or PR if Deductions are set up by Vendor)
Run the AP Account Distribution Report by Transaction Type. Look for
documents that were debited and credited to the AP account.
Accounts Payable
Other Items related to Accounts Payable
Processing 1099’s
 1099 forms are updated based on check dates – not period-to post
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1099 Calendar Year Control (Allows for two active 1099 years)
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Date must be in an open 1099 year when printing AP Checks
You should purge the Oldest year only after you have completed the final
printing of 1099 forms
Year End Updates for 2010 are available now for download
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SL 7.0 all versions
SL 6.5 sp2 & sp3
No changes to the form
Few updates to the 1099 Electronic file
Accounts Payable
Other Items related to Accounts Payable (Continued)
Processing 1099’s (Continued)
 How do we know they are correct
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Quick & Dirty Check
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Detail Check
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Compare Payments in Vendor History Report (03.671.00) to 1099 Preview (03.730.00)
Select field = Vend1099 ; Operator is equal; Value = ‘1’
If on a fiscal year, you may have to use MS Query
Down load KB936577.zip file from Boyer Website
Report for all paid documents to 1099 Vendors regardless if a 1099 box was used
Note : Pay special attention to Prepayments and Adjusting Debits
Causes for Incorrect 1099’s
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Vendor was not originally set up as a 1099 Vendor
Vouchers entered to an incorrect 1099 Box
Accounts Payable
Other Items related to Accounts Payable
Processing 1099’s (Continued)
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How do we Correct 1099’s
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1099 amounts can be manually corrected using Initialize Mode in the Vendor Maintenance screen.
Can try running the rebuild 1099 history option in the AP Integrity check
PSTL tool to assist in rebuilding 1099 information for paid vouchers that were not originally entered as
1099 vouchers. $ 750.00.
Filing Electronically
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If more than 250 1099’s you must file electronically to the IRS
If more than 25 1099’s you must file electronically to the State of MN
See Fact Sheet 2a from MN Dept of Revenue
Accounts Receivable
If you are using Order Management and Inventory then the AR module should be closed
at the same time as Accounts Payable. There is an exception to this rule. If you are also
using Flexible Billings, then AR will need to stay open until the Project Billing review
process has been complete.
If using Order Management, ensure all shipments made prior to month end have been
invoiced and processed thru the Sales Journal to AR ‘Invoice/Memo’ screen
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Ensure all activity such as Payments, Invoices, CM’s & DM’s that
relate to activity completed in the prior period have been entered
into the AR Module
Verify all Recurring Invoices have been generated and posted for
the period
Verify all batches have bee released and posted
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Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B,H,S,U
Verify Customer Trial Balance agrees with the AR Aging Report
Accounts Receivable (Continued)
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Verify the Customer Trial Balance agrees to the General Ledger
Trial Balance. If not then:
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Was a reconciliation completed last period
Run a Detail GL for the AR account(s) and look for transactions that did not
originate in AR
Run the AR Account Distribution Report by Transaction Type. Look for
documents that were debited and credited to the AR account.
Inventory
If you are using Order Management and Purchasing then the closing of the Inventory
module must be coordinated with the closing of the AR module and the AP module.
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Ensure all items that have physically been received are recorded as
receipts either thru the Inventory Receipts screen or the Purchasing
‘Receipt/Invoice’ screen
Ensure all items that have been physically shipped are recorded as
issues into Inventory and as Invoices in the AR ‘Invoice/Memo’
screen
Verify all batches have been released and posted
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Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B,H,S,U
Post all transactions to the General Ledger
Inventory
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Compare the Inventory Valuation Report to the Inventory Trial
Balance
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(Continued)
Run GL Transaction report in ‘Unposted’ format with an ending period in a
future period. Note all transactions with a Journal Type of IN, PO, OM. These
will have affected the Valuation Report an not the Trial Balance
Run the ‘Inventory Trial Balance/Valuation Variance’ report . Analyze any item
that shows up on this report.
Compare the Inventory Trial Balance report to the General Ledger
Trial Balance. If not then:
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Verify the Inventory Trial Balance was reconciled to the General Ledger Trial
Balance at the end of the last period.
Run the Detail GL report an review transactions which affected the Inventory
account(s) that do not have a Journal Type of IN, OM or PO
Cash Manager
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The Cash Manager is both Date sensitive and Period Sensitive.
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The Reconciliation function is two fold
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It is date sensitive when updating the Cash Manager
It is period sensitive when updating the General Ledger
A reconciliation between the Bank Statement and the Cash Manager
A reconciliation between the Cash Manager and the General Ledger
We recommend that you disassociate the ‘Cash Manager to the
General Ledger reconciliation’ in the Bank Reconciliation screen
and perform two separate reconciliations
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Cash Manager to the General Ledger
Bank Statement to the Cash Manager
Cash Manager (Continued)
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Reconcile the Cash Manager to the General Ledger
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Verify all batches have been released and posted.
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Verify all Recurring Items have been generated and posted
Balance the General Ledger Balance to the Daily Cash Balance. If not then:
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This includes the batches from CA, GL, AP, AR and PR
Verify the reconciliation was completed at the end of the last period
Review the GL Transaction report in ‘Unposted’ format. Include future periods
Review the Detail GL for transactions that do not have a Journal Type of GL, AP, AR, PR or CA.
Also look for transactions that do have a transaction type of IN,CM,DM,VO,AD,AC, etc.
Make required adjustment. (Note: this may require an OA,OD,OP or OM
transaction. (i.e. adjustments to CM but not the GL)
Cash Manager (Continued)
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Reconcile the Bank Statement to the Cash Manager. If not then
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Verify the beginning balance on the Bank Statement agrees Statement
Balance on the last Bank Reconciliation
Record any transaction on the Bank Statement that is not in SL
Run the Bank Reconciliation report. This may list differences that might assist
you in reconciling the bank statement
Extract Cleared Deposits and Cleared Checks to Excel
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Compare to the summary information on the Bank Statement to isolate the difference
Payroll
The Payroll module must be closed for the Year-End in the accounting period that
contains the 12/31/XX date. (i.e. where the check date is on or before 12/31/XX and
after the last Pay Period.
When you close the Payroll module for the Year it creates new deduction records for
the next year based on the deduction records for the current year. Therefore, the
2011 payroll calculation will not work until the year end close for Payroll has been
completed in 2010.
The preferred method for Month-End and Quarter-End Payroll closing is before the
accounting period ending date. However, it is not a requirement.
Consider a bi-weekly payroll which has 26 Pay periods in an Accounting System with
12 Periods. You will either have to accrue or reverse a portion of the expenses to
match the Payroll expense in the right period
Payroll
(Continued)
Month-End Procedures
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Verify all Payroll Batches have been released and posted
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Post all transactions to the General Ledger
Reconcile the Payroll module to the General Ledger. If not then
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Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B.H,K,S,R and U
Compare the P&L Accounts in the Account Distribution report in summary
format with the General Ledger Trial Balance
Run the GL Transaction report in Unposted format and include future periods
Run the Detail GL report and look for transactions that did not originate in
Payroll
Verify that last month was reconciled
Consider reconciling the “Earnings Deductions’ report in Total
Format to the following reports
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941 Worksheet
Unemployment Worksheets (both Federal and State)
Payroll (Continued)
Quarter-End Procedures
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Same procedures as Month-End procedures
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Reconcile the “Earnings Deductions’ report in Total Format to the
following reports
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941 Worksheet
Unemployment Worksheets (both Federal and State)
Consider testing W-2’s
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Use the ‘Earnings Deduction’ report in Detail Format
Payroll (Continued)
Year-End Procedures
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Same procedures as Month-End and Quarter-End procedures
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Verify all calculations for the current year are processed and
cleared prior to closing the year. (i.e. there should not be anything
in the check preview report)
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Close the Payroll using the Year Closing Option
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Install Year-End updates.
Note: this can be completed before or after you close Payroll for the year
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Year End Updates for 2010 are available now for
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SL 7.0 all versions
SL 6.5 sp2 & sp3
Load 2011 Tax update. This must be completed after you close the
Payroll for the year. Tax tables will be available later this month.
Payroll (Continued)
Year-End Procedures
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Update deduction and earnings information for employees
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Such as new SUTA rate, new Insurance rates, etc.
Note: Clear Hire Act Check Box on Employee Maintenance Screen.. Assuming it is not
extended.
Prepare W-2’s
W-2 Processing
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The W2 calculation process is used to calculate W2’s and can be
run at anytime, as well as, multiple times
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After the calculation has been processed you can review by
running the W2 forms
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Compare to ‘Earnings Deduction’ report in Detail Format Or, after calculation
review in Employee W2 History screen
Corrections to W2’s can be made in Employee W2 History screen
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Can be run by pay group and by employee if necessary
Can be run for any calendar year that you are retaining detail (i.e. after Payroll
has been closed for the year)
Must be in Initialize mode
If corrections are made (make sure to select ‘Protect Edited W2 Information’ is
checked in the W2 calculation screen. This way edited information will not
change
Corrections to Employee History screen
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Must be in initialize mode
W-2 Processing (Continued)
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Run W2’s or prepare W2’s using using W2 Electronic file
Electronic filing of W2 data is supported for federal filing only
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However, Minnesota accepts EFW2 file
If more than 250 1099’s you must file electronically to the IRS
If more than 25 1099’s you must file electronically to the State of MN
See Fact Sheet 2 from MN Dept of Revenue
W-2 Processing (Continued)
Tips on W2 Processing
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Some issues require modifying maintenance screens
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Some issues require corrections on Employee W2 History screen
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Missing State Employer ID
Deduction Maintenance(History)/W2 Control
Missing Federal Employer ID Company Maintenance
Incorrect Boxes
Deduction or Earnings
Incorrect wages reported due to incorrect setup of tax exempt deductions
Adjustments for taxable items such as taxable life insurance
Use Earnings & Deductions – Total format to balance to W2
information for state wages and state withholding amounts to the
forms that are filed with your taxing authority
QTD & YTD information on the Earnings & Deduction report and
the Unemployment Tax worksheet come from data in the Employee
History screen. If an error is found in either report, correct in the
Employee History screen
Questions & Comments
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Questions?
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Is there anything you expected from the course that we did not
cover?
Contact information :
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Bud Brenneman
Colleen McCoshen
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[email protected]
[email protected]
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763-412-4333
763-412-4309