This is Part 5 in a series for Microsoft Dynamics SL year-end closing best practices. This post outlines the year-end closing for the General Ledger Module in Dynamics SL. Below you’ll find a checklist of steps and other information.
The series covers the following:
Note: Year end is a good time to test the Dynamics SL Database Backups to make sure there are no issues. The last thing you need is to discover that your backups don’t work when you need them. After testing, perform backups of the Application and System databases before starting the year-end closing process.
Year-End Closing for General Ledger Module
You do not have to close all modules for an accounting period at the same time. You cannot, however, close the General Ledger Module for a specific period until you close all other modules with activity in that same period.
General Ledger Checklist
- Complete the posting and closing procedures for all sub-modules.
- Verify that all General Ledger batches are released and posted. This can be done by running the General Ledger Batch Register Report – Summary for the Periods 01 through 12 (or Period 13). To locate unreleased or unposted batches, create a filter using the Select tab as follows:
- Review and resolve any batches.
Any batches appearing on the report will require further processing. Batches with B (Balanced) or H (Hold) status will need to be released and posted or deleted. Batches with status of U (Unposted) with a period to post within the fiscal year being closed will need be posted. Batches with status of S (Suspended) will need to be researched and resolved. Review the GL Transactions-Unposted Report to check for any unposted batches.
- Generate the following reports to electronic files to retain for your GL Records:
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- GL Detailed Report
- Trial Balance
- Log off Dynamics SL and backup the database.
- Login into Dynamics SL. Go to General Ledger > Processes > Closing (01.560.00) and close the General Ledger Module for the Closing Type: Year
The year-end closing process will perform the following:
- Set the current period to the first period of the new fiscal year.
- Establish the new year’s beginning balances for the asset and liability accounts.
- Zero the income and expense accounts and close the Year-to-Date Net Income account into the Retained Earnings Account.
- Retain the year’s period-to-date and year-to-date history.
Financial Reports and Reviews
Generate the following Financial Reports and perform the following reviews:
- Balance Sheet – Verify Total Assets equal Total Liabilities + Stockholders’ Equity.
- Income Statement – Verify Net Income (Loss) to the Trial Balance Report for either Net Income or Total Revenues less Total Expenses.
After the General Ledger Module close, generate the General Ledger - Trial Balance report for Period 01-2021 and verify the beginning balances tie to the ending balances for Period 12-2020 (or 13-2020).
This segment completes the series, in which we covered Inventory, Purchasing and Accounts Payable, Flexible Billings, Order Management and Accounts Receivable, Project Controller and General Ledger Modules in Dynamics SL.
Click below to read these articles in the series:
Reach out to our Dynamics SL team of experts for additional information or answers to any questions.
About the Author
Jane Nygren is a Senior Consultant with the Customer Care SL Team, for Enavate Managed Services, a DXC Services Partner. She is a CPA with certifications in the States of Texas and Wyoming. Her MBA Degree is from the University of Tulsa. In additional to her Dynamics SL experience, Jane uses her Accounting knowledge and experience to resolve financial cases in the Customer Care SL Queue. She enjoys the simple things like going to the local Whataburger every Saturday (drive thru during the pandemic) and just hanging out with her husband and cat named ‘Little Girl’. Jane stays involved at her church. Her Hometown is Tulsa, Oklahoma. She currently lives in the Houston area.