In part four of the step-by-step guides of our recommended best practices to close your financial year-end with Dynamics GP, we will be covering fixed assets. If you haven’t already, we recommend you read our three previous blogs on inventory, receivables management, and payables management before starting this step as fixed assets are next along the chain.
Step one: 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 year.
Step two: Depreciate all assets through the last day of the current fiscal year
It is important to depreciate all assets through the last day of the current Fixed Assets Fiscal Year. If all assets are not depreciated through the last day of the current Fixed Assets Fiscal Year prior to processing the year-end-close, depreciation amounts will be incorrect.
- In Microsoft Dynamics GP, point to Toolson the Microsoft Dynamics GP menu, point to Routines, point to Fixed Assets, and then click Depreciate.
- In the Depreciation Target Date box, type the last date of the current fiscal year.
- To insert all the fixed asset books, click All.
- Click Depreciate.
Step three: 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
- Depreciation Ledger
- Property Ledger
- “Fixed Assets to General Ledger Reconciliation”
If you have more than one fixed asset book, we recommend that you also print the following reports:
- “Book to Book Reconciliation”
- “Book to Book YTD Depreciation Comparison”
Step four: Guarantee that the Fixed Assets calendar is built correctly
- In Microsoft Dynamics GP, point to Toolson the Microsoft Dynamics GP menu, point to Setup, point to Fixed Assets, and then click Calendar.
- Select a Calendar and then click Verify. When you are prompted to verify the periods, click OK.
- In the Report Destination window, click Screen, and then click OK.
Step five: Create a backup
See our previous blog on why this is important.
Step six: Perform the fixed assets year-end closing routine
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 the status of those assets.
- In Microsoft Dynamics GP, point to Toolson the Microsoft Dynamics GP menu, point to Routines, point to Fixed Assets, and then click Year End.
- 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.) 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.
- Click Continue to start the process. Click Continue to confirm.
Now you have completed step four of the year-end close process within Microsoft Dynamics GP. Look out for our final blog in this process which will focus on General Ledger.
Read the three previous steps below..