Step 1: Perform all the year-end closing procedures for Payables Management in Microsoft Dynamics GP

Close Payables Management first. This action guarantees that all the outstanding fixed asset transactions are capitalized. For more information about closing Payables Management, click the following article number to view the article in the Microsoft Knowledge Base:

875169 Year-end closing procedures for the Payables Management module in Microsoft Dynamics GP
 

Step 2: Enter all the fixed asset transactions for the current fiscal year

Post all the additions, the changes, the transfers, and the retirements for the current fiscal year.

Note Transfers and undo retirement transactions should never be performed in a historical year.

Step 3: Depreciate all assets through the last day of the current fiscal year

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Fixed Assets, and then click Depreciate.

2. In the Depreciation Target Date box, type the last date of the current fiscal year.

3. To insert all the fixed asset books, click All.

4. Click Depreciate.
   
   NOTE: It is very important to depreciate all assets through the last day of the current FA Fiscal Year. If all assets are not depreciated through the last day of the current FA Fiscal Year prior to processing the year-end-close, depreciation amounts will be incorrect. Please see Q3 and A3 in the FAQ section below for more information.

Step 4: Perform the GL Posting (GL Interface) process (This step is optional.)

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Fixed Assets, and then click GL Posting.

2. In the Beginning Period box, type 2020-012.
   
   Note The 2020-012 placeholder represents period 12 of the fiscal year 2020. If you are not running on a calendar fiscal year, or if you have more than 12 periods, the period that you type would be different.

3. In the Ending Period box, type 2020-012.

4. In the Transaction Date box, type the last date of the current fiscal year, or type the date when you need the posting to affect the general ledger.

5. Click Continue.

6. When you receive a message that the batch number is being created, click Continue.

7. In the Report Destination window, click to select the Printer check box, and then click OK.
   
   Note You may want to keep this report as part of the year-end financial records.

Step 5: Run any year-end reports that you want to keep as part of the year-end financial records

The year-to-date depreciation amounts for previous fiscal years are not kept in Fixed Asset Management. Therefore, you must print any reports that contain this information before you close the year.

There are several reports available for fixed assets. We recommend that you print the following reports:

• Annual Activity
  
  To print the Annual Activity report, point to Fixed Assets on the Reports menu, and then click Activity.

• Additions
  
  To print the Additions report, point to Fixed Assets on the Reports menu, and then click Transaction.

• Retirements
  
  To print the Retirements report, point to Fixed Assets on the Reports menu, click Transaction, and then click Retirements in the Reports list.

• Transfers
  
  To print the Transfers report, point to Fixed Assets on the Reports menu, click Transaction, and then click Transfers in the Reports list.

• Depreciation Ledger
  
  To print the Depreciation Ledger report, point to Fixed Assets on the Reports menu, click Depreciation, and then click Depreciation Ledger in the Reports list.

• Property Ledger
  
  To print the Property Ledger report, point to Fixed Assets on the Reports menu, click Inventory, and then click Property Ledger in the Reports list.

• "Fixed Assets to General Ledger Reconciliation"
  
  To print the "Fixed Assets to General Ledger Reconciliation" report, point to Fixed Assets on the Reports menu, click Activity, and then click Fixed Assets to General Ledger Reconciliation in the Reports list.

If you have more than one fixed asset book, we recommend that you also print the following reports:

• "Book to Book Reconciliation"
  
  To print the "Book to Book Reconciliation" report, point to Fixed Assets on the Reports menu, and then click Comparison.

• "Book to Book YTD Depreciation Comparison"
  
  To print the "Book to Book YTD Comparison" report, point to Fixed Assets on the Reports menu, click Comparison, and then click Book to Book YTD Depreciation Comparison in the Reports list.

Step 6: Guarantee that the Fixed Assets calendar is built correctly (This step is optional.)

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Fixed Assets, and then click Calendar.

2. Select a Calendar and then click Verify. When you are prompted to verify the periods, click OK.

3. In the Report Destination window, click Screen, and then click OK.

Step 7: Verify that the quarters are set up correctly for all the fiscal years

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Fixed Assets, and then click Quarter.

2. Make sure that the following boxes are not empty:

   • Start Date

   • Mid Date

   • End Date

   Note These boxes must exist for each quarter. If any box is empty, type the appropriate date in that box.

Step 8: Create a backup

This backup should be stored off-site together with the rest of the year-end documentation. This backup gives you a permanent record of the company's financial position at the end of the year. Additionally, this backup can be restored later if it is required. Making a backup guarantees that you can quickly recover if a power fluctuation or other problem occurs during the year-end closing procedures.

To create a backup in Microsoft Dynamics GP, follow these steps:

1. In Microsoft Dynamics GP, point to Maintenance on the Microsoft Dynamics GP menu, and then click Backup.

2. In the Company Name list, click the company name.

3. Change the path of the backup if you must, and then click OK.

Step 9: Perform the fixed assets year-end closing routine

1. In Microsoft Dynamics GP, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Fixed Assets, and then click Year End.

2. Verify that the fiscal year that is displayed for each book is the current fiscal year. (The current fiscal year is the year that you are closing.)
   
   Note If the fiscal year that is displayed for a book is not the current fiscal year, see question 1 in the "Frequently asked questions (FAQ)" section.

3. Click a book(s) that you want to close, and then click Insert. Repeat this step until all the books that you want to close have been inserted.

4. Click Continue to start the process. Click Continue to confirm.

5. You will be prompted to confirm that you have depreciated assets through to the last day or the current FA year. If not, be sure to click NO here and do that before you can continue to close the year. If you have, click Yes.

Note A report is not generated during the fixed assets year-end closing routine for Microsoft Dynamics GP 2013 and prior versions. For Microsoft Dynamics GP 2015 and higher versions, a Fixed Asset Year-End Closing report is optional to print. This report will provide a list of all the assets affected by the year-end close process by book and a status of those assets. 

Note Microsoft Dynamics performs the following procedures during the year-end closing routine:

• In the Asset General Information window, the Quantity field is copied to the Begin Quantity field of the Expand Quantity window.

• In the Expand Last Maintenance window, the YTD Maintenance amount is cleared.

• In the Asset Book window, the YTD Depreciation Amount is cleared.

• The following procedures are performed:

  • The Cost Basis field is copied to the Begin Year Cost field.

  • The LTD Depreciation field is copied to the Begin Reserve field.

  • The Salvage Value field is copied to the Begin Salvage field.

• In the Book Setup window, the Current Fiscal Year field is increased by one.