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Your Guide to a Stress-Free Year End Close

Closing out the financial year in Microsoft Dynamics GP doesn’t have to be stressful. With the right preparation, a clear checklist, and a few best practices, you can complete your General Ledger (GL) year-end close smoothly and confidently. 

Below is a practical, step-by-step guide based on our recent webinar to help you navigate the GL year end close process in Dynamics GP. 

Why the GL Year End Close Matters 

The GL year end close rolls your balances forward into the new fiscal year, updates retained earnings, and ensures your financial data is accurate for reporting, audits, and compliance. Skipping steps—or closing out of order—can create unnecessary rework later. 

Before You Close: A Recommended Checklist 

Before starting the GL year end close, make sure you’ve completed the following: 

  • Review all General Ledger accounts for accuracy 
  • Confirm correct posting types for each account 
  • Lock down fiscal periods to prevent unwanted postings 
  • Complete year end closes for all other modules 

Suggested Module Close Order 

It’s strongly recommended to close other modules before closing GL: 

  • Inventory 
  • Sales 
  • Purchasing 
  • Fixed Assets 
  • Analytical Accounting 

Once these modules are closed, you’re ready to focus on General Ledger. 

GL Year End Close Procedures (Step-by-Step) 

  1. Post All Batches

Post all batches in every module except General Ledger. Ensure all transactions for the year are fully posted. 

  1. Post Final Adjusting Entries

Enter and post any final adjusting journal entries in the General Ledger, including auditor adjustments if applicable. 

  1. Verify Account Posting Types

Print or review an Account List to confirm each account has the correct posting type: 

  • Balance Sheet accounts roll balances forward 
  • Profit and Loss accounts close into Retained Earnings 
  • Unit accounts roll forward 

You can review this information using: 

  • Financial > Reports > Account > All Accounts 
  • SmartList > Financial > Accounts 

  1. Close the Last Fiscal Period (Optional)

Closing the final period can help prevent accidental postings before the year end close. 

  1. Verify GL Setup

Review your General Ledger setup settings to ensure everything is configured correctly before proceeding. 

Backups and Reports (Do Not Skip These) 

  1. Make a Backup

Always take a full backup before closing the year. This is one of the most critical steps. 

  1. Print the Detailed Trial Balance

Run and save the Detailed Trial Balance report for year end documentation. 

  1. Print Year End Financial Statements

Generate your final financial statements for the year and retain them for your records. 

Closing the GL Year 

  1. Set Up the New Fiscal Year

Navigate to:
Admin > Setup > Company > Fiscal Periods 

Create and verify the new fiscal year before closing the old one. 

  1. Close the Fiscal Year

Go to:
Financial > Routines > Year End Closing 

Important tips: 

  • Ensure you have a current backup 
  • Select the option to retain inactive GL accounts if needed 
  • Let the process run—do not interrupt it 
  • Save the Year End Closing report for future reference 

After the Close: Final Steps

Close Fiscal Periods Across All Series

Lock down fiscal periods for all modules to prevent posting to the closed year.

Update Budget Figures

Adjust and enter new budget figures for the new fiscal year.

Make a Final Backup

Once everything is complete, take another full backup for your records.

Common Questions About GL Year End Close 

Do I have to close the GL year?

Yes. Closing GL is required to roll balances forward to the new year. 

Do I need to back up before closing?

Yes. A backup is highly recommended. 

Do all other modules need to be closed first?

It is highly recommended to avoid reconciliation issues. 

Do I need to run Check Links on Financial?

No, it is not required for the GL year end close. 

Best Practices to Remember 

  • Keep multiple backups (pre- and post-year end close) 
  • Use SmartLists to verify GL account setup 
  • Know how to reopen a GL year if needed 
  • Prevent users from posting to reconciled fiscal periods 
  • Retain year end reports and backups for audit purposes 

Final Thoughts 

A successful year end close in Dynamics GP comes down to preparation, backups, and following the proper sequence. Taking the time to review your setup and complete each step carefully will help you start the new fiscal year with confidence. 

If you have questions or need assistance with your Dynamics GP year end close, our team is here to help. Contact us at support@iscorp.biz to get expert guidance.