Microsoft Dynamics GP Year-End 2025: Payables Management

Wow, can you believe it? Here we are again, gearing up for the 2025 Year-end!  Are you ready? Don't worry, we've got your back every step of the way!

As the year draws to a close, we're here to equip you with everything you need for a successful Payables Year End.
This is your go-to hub for all the essential information to ensure your year-end in Payables Management is as smooth as possible.

What changes can I expect for 1099 forms for the 2025 year?

• The 1099 forms itself did not change this year, nor the 1096 form. (summary of your 1099's) 

• Did you know that you can now print ALL the 1099 forms WITH LINES?!!  No need to buy preprinted 1099 forms any longer. 
This is all included in the 18.6 release or later.  In the 2025 year-end update a few changes were updated on these forms.
Microsoft Dynamics GP October 2023 - ALL Payables 1099 forms print with LINES and BOXES!!

• If you mail the above forms with lines in a window envelope, it is best to use a 1/2-page envelope vs a standard envelope, it will line up easier.
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• As with years past, it is imperative you file electronically.  The Taxpayer First Act mandates electronic filing of IRS forms including W-2s, 1099 and 1095-C ACA forms.
Dynamics GP does not file Payables 1099's electronically.
Review this blog to help you prepare for year-end and electronic filing!
Microsoft Dynamics GP: 1099 Changes to expect -Get ready for Year-end!!

• There was a change announced in April 2025 around reporting requirements for Excess Golden Parachute Payments.
These payments must now be reported in Form 1099-NEC Box 3, they were previously reported on the 1099-MISC form Box 14.
This change did not make it in the 2025 year-end update (since there were no other form changes), we will review this change for a future Dynamics GP update.

1. The Calendar year-end close process transfers the 1099 Amount from the Year-to-Date column to the Last Year column in the Amounts Since Last Close view in the Vendor Yearly Summary window, found under (Cards >> Purchasing >> Summary >> Yearly Button).
2. The Fiscal year-end close process transfers all other amounts from the Year-to-Date column to the Last Year column in the Amounts Since Last Close view, also found under (Cards >> Purchasing >> Summary >> Yearly Button).

1. When these amounts are transferred this will also affect SmartList amounts that contain Year to Date or Last Year summary columns.
2. The Vendor Summary report will also be affected by the transfer of amounts from the Year-to-Date column to the Last Year column when closing the year.

1. Post all transactions for the current year.
2. Make sure that transactions for the new year are saved, not posted.
3. After verifying those steps, make a backup of your company database.
4. Follow the steps in Year-end closing for Payables Management – Dynamics GP | Microsoft Docs.

• Follow the steps outlined in Year-end closing for Payables Management – Dynamics GP | Microsoft Docs and always make a restorable backup before starting any year-end close procedure.
• Vendors should be marked as 1099-able before any transactions are posted for them so that 1099 information is updated automatically throughout the year.  Please refer to Change the 1099 amount for a vendor – Dynamics GP | Microsoft Docs to correct vendors that were not marked correctly.
  
• There are thresholds for each box that must be met in order for the form to print for a vendor.   You can find the thresholds under Microsoft Dynamics GP >> Tools >> Setup >> Purchasing >> Payables >> 1099 Setup for each respective form. 
  Note that the threshold for Box 1 for the 1099-NEC form is $600.00, so the form will only print for those vendors who have more than $600 in Box 1.
• Please Note: Both Payables Management and Receivables Management Year End KB articles mention that you should close the tax year. This will only need to be done once, after both the Receivables and Payables modules are closed. (The reason that we list this on both KB Articles is because some users may not use both Payables Management and Receivables Management.)
  
• Tax Forms – 800-432-1281 (these are the only preprinted 1099 forms tested to be compatible with Microsoft Dynamics GP 
• For 1099 printing issues review Question 5 for a comprehensive list to check.
  

Have a great Year-End!

Be sure to refer to the 2025 Year-End Blog Schedule to review current and upcoming blog posts and other helpful resource links related to Year-End Closing for Dynamics GP.

Terry Heley

Microsoft