Microsoft Dynamics SL Year End Updates & Close Processes

The target date to release the 2022 Year End Update for Dynamics SL 2018 is the week of December 18, 2022. There is no Year End Update available from Microsoft for SL 2015 or SL 2011.

The reported changes are:

• The year has been added to dynamically print on the form since the IRS removed the year from all 1099 pre-printed forms.
• 1099-MISC – the account number has moved down a box, FACTA filing has moved over, and the 2^nd TIN has moved down a box.
• Fixed Assets – changes to luxury auto depreciation.

There are no reported changes to the 2022 W-2 form or electronic filing format this year.

The minimum requirements for filing Forms W-2 and W-2C electronically have been lowered.  Employers who file 10 or more W-2s and W-2Cs by January 31, 2023, will have to submit them electronically to the SSA.

All Microsoft Dynamics SL clients who own the Payroll module are able to use Magnetic Media to create the required file layout.

Please click the link below for more information about the electronic filing requirements and registering for the SSA’s Business Service Online, which is a website used to upload the Magnetic Media files to the SSA. It’s recommended that you register with the Business Service online as soon as possible as it might take some time to get the password.

Taxpayer First Act (ssa.gov)

Installation & Resources

Please follow this link for installation downloads and notices directly from Microsoft: 2022 YE Update

Please let us know if you are interested in having Velosio install the 2022 Year End Update. If you already contacted Velosio about the Year End Update, you do not need to contact us unless you want to ensure you have the correct information.

Note:  If you are running Dynamics SL 2012 or 2015, we are able to offer you a 2022 Year End Update with the same set of requirements that are being published for Dynamics SL 2018 at a nominal cost.  If interested, please contact your Client Account Manager to discuss the purchase and scheduling the update.

Year End Close Process for Dynamics SL

Please contact your Account Manager or email insider@velosio.com with assistance for your year-end close process.

Year End Considerations

• Fiscal vs Calendar Year – tax reporting is done on a calendar year basis
• Payroll and Accounts Payables modules both require calendar year-end processes at the end of December no matter what period number is assigned
• You may continue to post entries to prior periods even if they have been closed –including a year-end close
• W2 and 1099 forms are updated based on check dates – not period-to-post

Receivables closing procedures

• Review open Accounts Receivable files to ensure all documents for the period are entered
• Print or review the AR Batch Register (08.800.00)
• Run the General Ledger Post Transactions (01.520.00)
• Print or review the Customer Trial Balance (08.620.00) and General Ledger Trial Balance (01.610.00)
• If an Aged AR Report (08.610.00) has not been printed, run the Age Customer Detail (08.530.00) process and then print the Aged AR report for the file
• Close the Accounts Receivable module for the year in General Ledger Closing (01.560.00)
• NOTE:  The Sales Order module is closed when the Accounts Receivable module is closed

Payables closing procedures

• Review open Accounts Payable files
• Print or review the AP Batch Register report to ensure there are no open Accounts Payable batches for the current period
• Post Transactions in the General Ledger module
• Print or review the Vendor Trial Balance and General Ledger Trial Balance
• Print the Check Register and Aged AP if they were not printed for the month If you are closing a year, the Closing process sets the current year and period to the first period of the new year. It also establishes the new year beginning balances for each vendor
• NOTE: The Purchasing module is closed when Accounts Payable module is closed

1099 processing

• Vendor 1099 amounts can be manually corrected using Initialize Mode in the Vendor Maintenance Screen
• 1099 amounts are calculated based on check dates
• AP Integrity Check – Rebuild 1099 history using document history
• Tools are available for rebuilding 1099 information for paid vouchers that were not originally entered as 1099 vouchers
• 1099 preview report will contain all 1099 vendors regardless of the limit amounts
• 1099 forms will only print forms for those vendors who exceed limit amounts

Sales order closing procedures

• The Inventory, Order Management and Purchasing modules should be closed as close together as possible. Purchasing and Order Management do not have a closing function of their own
• Purchasing is closed when Accounts Payable is closed. Order Management is closed when Accounts Receivable closes
• To promote the proper matching of revenues and costs, the Accounts Receivable sales batches and Inventory cost of goods sold batches use the Invoice Date to determine the period to post. Both the sales and COGS batches post to the same fiscal period
• Print the Sales Journal report after all invoices for the month have been printed to insure that all transactions originating in the Order Management module are released to the Accounts Receivable and Inventory modules

Purchase Order closing procedure

• The default fiscal period in the Purchasing module’s Receipt/Invoice Entry window defaults from the current period from the Accounts Payable module even if it is installed. If Accounts Payable is not installed then the default fiscal period comes from the Inventory module
• Review open receipts files to ensure that all documents (receipts) for the period have been entered. Use the PO Receipts Edit report or the PO Batch Register to check for open receipts batches
• Complete the release of any open receipts batches discovered
• Use the Closing window in the General Ledger module to close Accounts Payable which closes Purchasing. If the Accounts Payable module is not installed, then closing the Inventory module closes Purchasing
• There are several useful reports to use in troubleshooting. To find a purchase order, receipt, or voucher in the system, use the following reports:
  • Purchase Order Status/History
  • Purchase Order Register
  • Receipts Register
  • Applied Vouchers
• To trace the relationship and ties between purchase orders, receipts, and vouchers, use the following reports:
  • PO Receipts Batch
  • PO Batch Register
  • Applied Vouchers
  • PO/AP Batch Cross Reference

Inventory closing procedure

• Review open inventory files to ensure that all documents (sales, receipts, adjustments, etc.) for the period have been entered
• Use the IN Edit (10.810.00) report or the IN Batch Register (10.800.00) to check for open inventory batches
• If the Order Processing module is being used, coordinate the closing process with the Accounts Receivable module
• Print or review the AR Batch Register (08.800.00)
• Complete the release of any open inventory document batches discovered
• Run the General Ledger module’s Post Transactions (01.520.00) process
• Print the following reports for balancing the inventory records to the General Ledger:
  • Inventory Valuation
  • General Ledger Trial Balance for all inventory accounts
• Compare the account totals of the Inventory Valuation (10.620.00) report to the amount shown for the corresponding inventory account  number in the General Ledger Trial Balance (01.610.00) and Inventory Trial Balance (10.630.00) reports. If the figures match, you are ready to close the Inventory module

General Ledger closing procedures

• General Ledger is always the last module to be closed
• Payroll always closes for the year in December… regardless of your Fiscal Year setup
• Once GL is closed for the year, you can still post batches to prior periods and prior years
• Verify the closing process for all modules other than General Ledger has been completed
• Ensure all data for the current fiscal period/year has been entered. Print and review these reports to review for any open or unposted batches
• GL Transactions − Unposted
• GL Batch Register
• Verify allocation entries have been generated and posted for the month
• Print the Trial Balance report and confirm account balances equal the balances on supporting documentation such as bank reconciliations, fixed asset listings, accrual worksheets, subsidiary ledgers, etc
• Compare beginning balances for the period to last period’s ending balances to ensure no entries are made to prior periods
• Enter and post any transactions that arise from the above review
• Process or create Consolidation Files if necessary
• Print and review the Trial Balance and Detail General Ledger reports
• Print and review financial statements
• Close the General Ledger module

Closing for the year performs the following functions:

• Sets the current period to the first period of the new fiscal year
• Establish beginning balances for the asset and liability accounts for the new year
• 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