- [Instructor] When it comes time
to close the year in Dynamics GP,
you want to check with your database administrator
to make sure that they're making back-ups
right before you do the close,
so in a worst-case scenario,
you can restore your Dynamics GP companies
from back-up if something were to go wrong
during the close process.
Another point to mention that is very important
is that you have a separate closing process
in all of these Subledger modules:
purchasing, sales, inventory...
All those closing routines are
under the Routines menu.
And these routines in these modules,
other than Financial, such as Sales and Purchasing,
are mainly about clearing out yearly buckets,
or totals for the year,
that show up on various reports.
And that's not as essential to do,
especially if you don't particularly run those reports,
I mean, it's a good idea to do it,
and to do it right as the year ends.
Normally, you're closing your financial books
somewhat later after an audit has been performed.
So, let's focus in on the more important close,
which is the closing of the books.
Under Financial, Routines, Year-End Closing.
You'll want to check,
in your Financial Setup, "General Ledger"
to see how the Retained Earnings are being recorded.
You can close to Divisional Account Segments.
In this case, what will happen is the natural account,
in this case, 30.30, that's the Retained Earnings Account,
and now you're selecting either the Department or Division
as where the Retained Earnings will be split out,
in this case, split out by Department.
You have to make sure that you actually
have a 30.30 Retained Earnings Account
for every one of Department where you're going
to have a change to Retained Earnings.
If you're just posting into one account
for your entire Retained Earnings, as most people do,
you'll want to make sure to uncheck that box.
Now, let's go to the routine for Year-End Closing,
and this is as simple as can be.
All you'll need to do is push the "Close Year" button.
You have an option to remove unused segment numbers
or to maintain inactive accounts.
Again, normally, all you simply do here,
after you're sure that you have a back-up,
is click the "Close Year" button.
It will then close the year and create a Journal Entry
to move over the beginning balances
and post the Retained Earnings.