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Tax year never closed

What are the ramifications to a tax year never being closed?

The main purpose of the Tax Year closing is moving the amounts from the current year column to the last year column under the Tax Detail Maintenance window (Microsoft Dynamics GP menu >> Tools >> Setup >> Company >> Tax Details), as closing the Fiscal Year doesn't move these amounts over. This field is for viewing and reporting purposes only and allows you the option to track your tax year differently from your fiscal calendar year if desired. This step is purely optional and we do not have a standard recommendation on whether or not it should be performed.

Closing a tax year:

Use the Tax Year-End Closing window to prepare your tax records for a new year. When you close the tax year, the accumulated year-to-date tax totals in the Tax Detail Maintenance window are cleared and transferred to last year’s tax totals. Separate year-to-date tax totals can then be recorded for the new year. Any tax amounts you enter after closing the tax year are added to the new year-to-date total. You can adjust the user date in the bottom left corner of GP, and then run the process as of that date.

If you’re keeping historical data, you can view tax totals for historical years using the Tax Detail History window.

Possible Ramifications:

- If you have haven't done the process in the past, and you've just decided to do the tax year end close now, the Total Sales/Purchase, Taxable Sales/Purchases, and Sales/Purchases Taxes amounts since you've started your Great Plains will just sum up in the Year To Date column in the Tax Detail Maintenance window (Setup | Company | Tax Details).

- The only report that should be impacted is the Tax Detail report located under Reports, Company, and Taxes. The YTD and Last Year columns appear on this report.

The tax details on each customer transaction will still be retained.

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