The end of 2014 is almost here, so let's discuss closing the year in Fixed Assets!  I'd like to provide you with information pertaining to what's new with the Year End Update, what the year end process does, as well as when it should be completed in Fixed Assets.  Good luck!


Changes with the release of the 2014 Year End Update you should be aware of in Fixed Assets:

Luxury Auto Maximum Depreciation Deduction Amounts: The maximum depreciation deduction amounts allowed for luxury vehicles has been updated for assets placed in service in calendar year 2014 to comply with IRS Guidelines:

 

Things to keep in mind when closing the year in Fixed Assets:

  • When you close the year in Fixed Assets, you have to do it for each book you have setup.
  • All books must be closed before you process depreciation for the new year. 
  • We recommend you close the Fixed Assets year after you close the year in Payables Management but before you close the General Ledger year.

 When you close the year in Fixed Assets, the following fields are updated:    

•Asset General Window:

  • The YTD Maintenance amount is cleared from the Expand last Maintenance Date Window.
  • The Quantity is copied to the Begin Quantity field in the Expand Quantity Window.

Asset Book Window:

  • The YTD Depreciation Amount is cleared.
  • Cost Basis is copied to Begin Year Cost field.
  • Life to Date Depreciation is copied to Begin Reserve field.
  • Salvage Value is copied to Begin Salvage field.

Book Setup Window:

  • The Current Fiscal Year is incremented to the next year.

 

Steps to complete the year end close process in Fixed Assets:

  1. Print all the reports that you will need for the year that you are closing before closing the year.
  2. **Make a backup!**
  3. Follow the steps in KB865653: “The year-end closing procedures for the Fixed Asset Management module in Microsoft Dynamics GP”.
  4. You must process depreciation to the last day of the year that you are closing before you close the year.
      • In Microsoft Dynamics GP 2010 and prior versions: The last day of the Fixed Assets year can be confirmed by navigating  Microsoft Dynamics GP>> Tools >> Utilities >> Fixed Assets >> Build Calendar >> Inquire.
      • In Microsoft Dynamics GP 2013 and future versions:  The last day of the Fixed Assets year can be confirmed by navigation to Microsoft Dynamics GP>>Tools>>Setup>>Fixed Assets>>Calendar.

MICROSOFT DYNAMICS GP - FEATURES

  • Microsoft Dynamics GP 2015 (Soon to be released)

With the upcoming release of Microsoft Dynamics GP 2015, I wanted to let you know that we’ve added an optional report to the Fixed Assets year end closing routine.  Now, in a single step, you can close your year and print a status report of all the assets that are being affected by the close.  On the report you’ll see the year to date depreciation, cost basis, accumulated depreciation, net book value and more.

REMINDER FOR MICROSOFT DYNAMICS GP 2010 USERS:

For Microsoft Dynamics GP 2010 and prior versions, DO NOT manually change the year in the Book Setup window so you can run depreciation for the next year before closing the current year.  If you do this, you will encounter problems at the end of the next year.  This is because Fixed Assets compares the Yearly Depreciation Amount field to the YTD Depreciation field.  If you run depreciation for the next year by changing your fiscal year in Book Setup, when you close the current year the YTD Depreciation amount is set back to $0.00.  This includes the amount of depreciation that you calculated for the new year.  As you complete depreciation for the new year, the YTD field will be updated but the amount that was generated for the first month (or months) before the previous year was closed is not included in that YTD total.  When you get to the last period, the depreciation amount will be doubled.  The GP code and procedures will determine that not enough depreciation was taken through the year because the Yearly Depreciation Amount does not equal the YTD amount due to the first month (or months) not being included in the YTD figure.  

Assistance for Fixed Assets Year End Close:

•Microsoft Dynamics GP Blog - https://community.dynamics.com/product/gp/gptechnical/b/dynamicsgp/default.aspx

•Microsoft Dynamics Community - https://community.dynamics.com/default.aspx

•Microsoft Dynamics Support - https://mbs.microsoft.com/support/newstart.aspx

If you are creating a case with the Technical Support Team, please refer to the routing below to ensure you are routed to the correct Professional for assistance:  

Support Topic Selection:  Financial – Fixed Assets

Sub-topic Selection:  Year End Procedures

Resources:

• Year-end closing procedures for the Fixed Assets module in Microsoft Dynamics GP: http://support.microsoft.com/kb/865653

•Here is a link to a comprehensive video presentation for "What's New in Year-End 2014" for Microsoft Dynamics GP.

• Be sure to check back to the Year-End Schedule post for current posted blogs and upcoming blog posts related to Year-End Closing for Dynamics GP.

Have a great Year-End!

Adam Gaber | Microsoft Dynamics GP  | Senior Support Engineer