Top 6 Year End Support Questions
Where do we get year end updates?
1.
Log into CustomerSource
•
https://mbs.microsoft.com/customersource/northamerica/SL/downloa
ds/taxregulatoryupdates/MSDSL2014yrendtaxpaid
•
Tax updates - Load them AFTER closing payroll for the year
•
Can’t print AP checks with a check date of 2015?
2.
Date must be in an open 1099 calendar year when printing checks.
Go to AP, Processes, Close 1099 Year
•
Can only have two 1099 calendar years’ worth of data
•
•
3.
Can I close just the GL period instead of closing year?
•
No, must close year the period option will not work.
•
You can post back to any period or year if your GL Setup posting option
is set to allow postings to closed fiscal periods.
Top 5
6 Year End Support Questions
My 1099 balances are wrong, how can I fix them?
4.
•
•
Closed payroll and now I need to do a check for 2014, can I
do that?
5.
•
6.
Log into SL with a user that has initialize rights for vendor maintenance
screen.
Turn initialize mode on, go to AP, Vendor Maintenance, 1099 tab will now
have numbers that are black and you can change them.
Yes, when you run calculation in payroll just make sure you use a check date
that is in the calendar year 2014. W2’s are based on check dates of checks.
Where can I get 1099 or W-2 forms?
•
•
•
•
IRS website http://www.irs.gov/Businesses/Online-Ordering-forInformation-Returns-and-Employer-Returns
Order online from Deluxe Business Checks and Solutions at the following
website: http://www.microsoftbusinesschecks.com
http://www.asillc.com/Solomon_Software/Files/ASI_W2_Order_Form.pdf
Office supply stores
Top
Changes
5 YearinEnd
the Support
Year EndQuestions
Updates
Accounts Payable 1099s
• 1099-MISC Form Changes
• Box 11 – Foreign tax paid is no longer used to report foreign tax paid on
payments. The form layout remains the same. However, Box 11 is now
dimmed and no longer used.
• Box 12 - Foreign country or U.S. possession is no longer used to report the
name of the foreign country or U.S. possession for which the foreign tax was
paid and reported in Box 11. Box 12 is now dimmed and no longer used.
• Filing 1099 Forms: You can file 1099 forms electronically or on paper. For more
information, see “Filing Information Returns Electronically (FIRE)” on page 15.
• 1099 Electronic File Changes
• Payer “A” Record Changes:
• Box 11 - Foreign Tax Paid is removed in field positions 28 – 43, Amount Code
“9” is no longer a valid value.
Top
Changes
5 YearinEnd
the Support
Year EndQuestions
Updates
Introduction to Closing

Year End vs. Monthly
•
Except for Tax reporting in AP and PR there technically is no difference

•
In Reality there is a difference
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•
Year vs. Period
Accuracy of Standing Accruals
Budget Fulfillment
Covenant Reporting
Performance Reporting
Tax implications
Etc.
However, Remember we don’t have to worry about not being able to post
back or forward in all modules
Introduction to Closing

Why do we have closings
•
•

It is used to help us measure how we (as a company) are performing
It is a Snap Shot of our financial position at one point in time
What are the biggest problems at closing
•
•
Timing/Cut-off
Reconciliations
Timing / Cut-off

It should allow for reports to be published quick enough for Management to
react to the information before the next period close.

Planning for Year-End
•

With an integrated system like SL we recommend closing as close to Work
Day 1 as possible
•
•

What can be done ahead of time
Easier to Coordinate consistency between modules
Minimize problems with Cash Manager
Most important, It should be consistent period after period including Year
End.
Reconciliations

Reconcile the Sub-Ledgers to the General Ledger
•
•

Make sure the Sub-Ledger is correct
•

AR, AP, Inventory, Cash Manager, Payroll, etc.
For Problem Sub-Ledgers consider reconciling on an interim basis
i.e. that there are no problems within the Sub-Ledger
Make sure there are no Unprocessed batches
•
Don’t delay in releasing or posting batches
General Ledger
The GL should be the last module you close for the Period or Year
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Enter all Standard JE’s, adjusting JE’s, and Generate Recurring JE’s
Ensure all sub-modules have been reconciled to the GL
Analyze all transactions in Suspense accounts. Correct and post
Verify all GL batches have been released and posted
•
•
•
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Verify all Allocations have been generated and posted
Run Trial Balance
•
•

Review Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B,H,S,U
Use Quick Query/Financial/General Ledger/Batches (filter status “is not”, “P” or
“V”)
Assets = Liabilities
Current Year Income = Profit & Loss Statement
Run Financial Statements (look at key #’s such as Revenue, GP, specific
accts)
Accounts Receivable
If you are using Order Management and Inventory then the AR module should be closed at
the same time as Accounts Payable. There is an exception to this rule. If you are also using
Flexible Billings, then AR will need to stay open until the Project Billing review process has
been complete.
If using Order Management, ensure all shipments made prior to month end have been
invoiced and processed thru the Sales Journal to AR ‘Invoice/Memo’ screen

Ensure all activity such as Payments, Invoices, CM’s & DM’s that relate to
activity completed in the prior period have been entered into the AR Module
Verify all Recurring Invoices have been generated and posted for the period

Verify all batches have been released and posted

•
•
•
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Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B,H,S,U
Use Quick Query/Financial/General Ledger/Batches (filter status “is not”, “P” or
“V”)
Verify Customer Trial Balance agrees with the AR Aging Report
Accounts Receivable

Verify the Customer Trial Balance agrees to the General Ledger Trial Balance.
If not then:
•
•
•
Was a reconciliation completed last period
Run a Detail GL for the AR account(s) and look for transactions that did not
originate in AR
Run the AR Account Distribution Report by Transaction Type. Look for
documents that were debited and credited to the AR account.
Inventory
If you are using Order Management and Purchasing then the closing of the Inventory
module must be coordinated with the closing of the AR module and the AP module.

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Ensure all items that have physically been received are recorded as receipts
either thru the Inventory Receipts screen or the Purchasing ‘Receipt/Invoice’
screen
Ensure all items that have been physically shipped are recorded as issues into
Inventory and as Invoices in the AR ‘Invoice/Memo’ screen
Verify all batches have been released and posted
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Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B,H,S,U
Use Quick Query/Financial/General Ledger/Batches (filter module IN and status “is
not”, “P” or “V”)
Post all transactions to the General Ledger
Inventory

Compare the Inventory Valuation Report to the Inventory Trial Balance
•
•

Run GL Transactions report in ‘Unposted’ format with an ending period in a future
period. Note all transactions with a Journal Type of IN, PO, OM. These will have
affected the Valuation Report an not the Trial Balance.
Run the ‘Inventory Trial Balance/Valuation Variance’ report . Analyze any item
that shows up on this report.
Compare the Inventory Trial Balance report to the General Ledger Trial
Balance. If not then:
•
•
Verify the Inventory Trial Balance was reconciled to the General Ledger Trial
Balance at the end of the last period.
Run the Detail GL report an review transactions which affected the Inventory
account(s) that do not have a Journal Type of IN, OM or PO
Cash Manager

The Cash Manager is both Date sensitive and Period Sensitive.
•
•

The Reconciliation function is two fold
•
•

It is date sensitive when updating the Cash Manager
It is period sensitive when updating the General Ledger
A reconciliation between the Bank Statement and the Cash Manager
A reconciliation between the Cash Manager and the General Ledger
We recommend that you disassociate the ‘Cash Manager to the General
Ledger reconciliation’ in the Bank Reconciliation screen and perform two
separate reconciliations


Cash Manager to the General Ledger
Bank Statement to the Cash Manager
Cash Manager

Reconcile the Cash Manager to the General Ledger
•
Verify all batches have been released and posted.
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•
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Use Quick Query/Financial/General Ledger/Batches (filter module CA and status “is
not”, “P” or “V”)
Verify all Recurring Items have been generated and posted
Balance the General Ledger Balance to the Daily Cash Balance. If not then:
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•
This includes the batches from CA, GL, AP, AR and PR
Verify the reconciliation was completed at the end of the last period
Review the GL Transaction report in ‘Unposted’ format. Include future periods
Review the Detail GL for transactions that do not have a Journal Type of GL, AP, AR, PR or CA. Also
look for transactions that do have a transaction type of IN,CM,DM,VO,AD,AC, etc.
Make required adjustment. (Note: this may require an OA,OD,OP or OM
transaction. (i.e. adjustments to CM but not the GL)
AP & 1099’s
Accounts Payable
If you are using the Inventory module and the Purchasing module then you need to coordinate AP
closing with Inventory
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Ensure all available Supplier’s invoices have been entered
Verify recurring batches have been generated and posted
Verify all batches have been released and posted
•
•
•
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Review Batch Register in Summary Format
Field = batch. Status; Operator = IN; Value = B,H,S,U,K and R
Use Quick Query/Financial/General Ledger/Batches (filter module AP and status “is not”, “P”
or “V”)
Verify Vendor Trial Balance agrees with Vendor
Full ReadAged Report
Full General
Write Ledger Trial Balance. If not then:
Verify Vendor Trial Balance agrees with the
•
•
•
Was a reconciliation completed last period
Run a Detail GL for the AP account(s) and look for transactions that did not originate in AP
(or PR if Deductions are set up by Vendor)
Run the AP Account Distribution Report by Transaction Type. Look for documents that were
debited and credited to the AP account.
Full Read
Limited Write
Integration and Development
Accounts Payable 1099’s
Processing 1099’s

New 2014 form : http://www.irs.gov/pub/irs-prior/f1099msc--2014.pdf
The 1099 box 11 – "Foreign tax paid" and box 12 – "Foreign country or U.S.
possession" that were added in the 2013 year end updates will be removed in the 2014
form.

1099 forms are updated based on check dates – not period-to post

1099 Calendar Year Control (Allows for
two active 1099 years)
Full Read
•
•

Date must be in an open 1099 year Full
when
printing AP Checks
Write
You should purge the Oldest year only after you have completed the final
printing of 1099 forms
Year End Updates for 2014.
• SL 2011 SP1, FP1, SP2 and SL2015
There will be changes to the 1099 forms and electronic media available
for download the first half of December.
Full Read
Limited Write
• Older versions (includes SL2011 without
a SP)
Integration
and Development
You may
have to find
an alternative method to printing 1099’s. This
could be manual adjustments to the form or a different program to print
the 1099’s.
Accounts Payable 1099’s
Processing 1099’s (Continued)
 How do we know they are correct
• Quick & Dirty Check

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•
Compare Payments in Vendor History Report (03.671.00) to 1099 Preview
(03.730.00)
Select field = Vend1099 ; Operator is equal; Value = ‘1’
If on a fiscal year vs. calendar year, you may have to use MS Query
Causes for Incorrect 1099’s
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Full Read
Fullas
Write
Vendor was not originally set up
a 1099 Vendor
Vouchers entered to an incorrect 1099 Box
Be careful to include payments to vendors using a credit/debit card and any
bartering of goods or services
Full Read
Limited Write
Integration and Development
Accounts Payable 1099’s
Using Quick Query to Assist in the Year End Vendor Clean-up
1. Who Will Get a 1099?
Quick Query/Financial/Accounts Payable/Vendor Details
The standard query pulls all the vendors which will require you to sort or filter on the third
column “1099 Vendor”. To sort just click on the column heading. To filter click the arrow on
the upper right hand side of the window to expand the filter criteria. Select the 1099
Vendor field, “is”, enter “1” (“0” for non 1099 vendors), and press tab to update the list. 1.
Full Read
Full Write
Full Read
Limited Write
Integration and Development
Accounts Payable 1099’s
Using Quick Query to Assist in the Year End Vendor Clean-up
2. Missing Information?
After reviewing the list of your 1099 vendors use the same instructions as #1 to pull the
same query information. Right click on the column headings and select “Choose Columns”.
In the left window scroll down until you
find the “Tax Registration Number” then
select “Add” then “OK”, your query will
refresh with the tax ID on the right had side
Full
ofRead
the report. Using the excel icon on the
Full Write
top of the window you an export all the
data to create a mailing list for your
vendors to get W9’s or to call. Make your
adjustments in the Vendor Maintenance
window on the 1099 Info tab.
Full Read
Limited Write
Integration and Development
Accounts Payable 1099’s
Using Quick Query to Assist in the Year End Vendor Clean-up
3. Validate Transaction Amounts.
Quick Query/Financial/Accounts Payable/1099 Vendor Balances
If you are using multiple companies this query will pull a separate row per company and
vendor.
Full Read
To filter click the arrow on the upper right hand
side of the window to expand the filter
Full Write
criteria. Select the Company ID field, “is”, and enter the company ID you are looking at, then
press tab to update the list. There will probably more columns then you want to look at, to
remove columns right click on the column heading and select “Remove Column”. This
query will give you the 1099 balance by vendor and by the 1099 box number. Export to
excel using the excel icon on the top of the window.
Integration and Development
Accounts Payable 1099’s
Using Quick Query to Assist in the Year End Vendor Clean-up
The next step is to pull the vendor history. Quick Query/Financial/Accounts Payable/Vendor
History. If you are using multiple companies follow the above instructions to filter to one
company. You will need to filter this query to only show the fiscal year that you will be
running 1099’s for. To add an additional click the button to add an additional filter. Once
you have everything filtered you can export to excel using the excel icon on the top of the
window.
Full Read
Full Write
Now that you have the 1099 Vendor Balances and the Vendor History in excel documents
you can use a vlookup formula to pull in the Vendor History YTD Payments into the 1099
Vendor Balances document to look for any vendors that have purchases that may not match
the 1099 amounts. Make your balance adjustments in the Vendor Maintenance window on
the 1099 Info tab, in Initialization Mode.
Integration and Development
Accounts Payable 1099’s
Processing 1099’s (Continued)
•
How do we Correct 1099’s
•
•

1099 amounts can be manually corrected using Initialize Mode in the Vendor
Maintenance screen.
Can run the rebuild 1099 history option in the AP Integrity check
Filing Electronically
•
•
•
If more than 250 1099’s you must file electronically to the IRS
Read
Link for IRS 1099-MISC instructionsFull
http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
Full
Write
Link for MN Department of Revenue
1099
e-Services fact sheet
http://www.revenue.state.mn.us/businesses/withholding/factsheets/factsheet02a.
pdf
Full Read
Limited Write
Integration and Development
Project Series
30
Project Series
31
Project Series
Notesabout Closing
32
Project Series
Possible Errors / Warnings
• Open AP Batches Exist
Look for any AP batches that are in the current or previous periods that are not yet released. Check Voucher and Adjustment,
Quick Voucher and Pre-Payment and Manual Check Entry.
Run the Batch Register Report to confirm the open batches. You will need to delete, release or change the period number on
these batches before the close can continue.
Important - You must check all companies in the current database for this situation, not just the company you are currently
logged in to. Do the same for the other modules that the error message states there are open batches in, i.e. GL, AR, etc.
• Warning: NN Timecards are Unposted
This is a warning only and does not prevent the rollover. If ignored, then any timecards in the current period will be posted into
the new period. You cannot post transactions into a closed project period.
Print the Time Card Report which can be found in the Time & Expense for Projects module
Note that MM/DD/YYYY is the last week ending date in the current period of Project
If no records appear on the Timecard Report, the unposted timecards may contain no hours. The Timecard Report does not
display timecards with no hours in it.
Find the relevant timecards from the report, complete/reject/delete and approve them.
33
Project Series
Possible Errors / Warnings
• Warning: NN Labor Entries are not Posted to GL
Run GL Labor Posting in the Time and Expense module which can be found in the Time and Expense for Projects
module under Processes. Fiscal Period to Post is entered using the YYYY-MM format.
Important – You must run this process for all companies in the current database, not just the company you are
currently logged in to.
• Untransferred AP Transaction exist
Run Financial Transaction Transfer for Accounts Payable (or other modules that are stated in the error message)
from the Project Controller module. It is good practice to run it for All. Enter the Fiscal Period in a MM-YYYY format.
• Unposted Allocations in current of prior period
Manually re-run allocator for each unprocessed batch in Allocation Processor from the Allocator module. In the
Batch Selection frame, specify the period, system code and batch number and click Allocate Company. If the Batch
Selection field in greyed out, change the setup in Project Controller Setup from the Project Controller module.
Check the Selection by Batch checkbox as shown below and return to the Allocation Processor screen.
34
Project Series
Other Items
35
Project Series
Fiscal Period Maintenance
36
Payroll
Payroll
•
The Payroll module must be closed for the Year-End in the accounting
period that contains the 12/31/XX date. (i.e. where the check date is on or
before 12/31/XX) and after the last Pay Period.
•
When you close the Payroll module for the Year it creates new deduction
records for the next year based on the deduction records for the current
year. Therefore, the 2015 payroll calculation will not work until the year end
close for Payroll has been completed in 2014.
•
It is preferable to close the Month or Year in Payroll before the accounting
period ending date. However, it is not a requirement.
– Consider a bi-weekly payroll which has 26 Pay periods in an Accounting
System with 12 Periods. It might be more convenient to process a
payroll with a check date after the accounting end date and post to a
previous period. You will either have to accrue or reverse a portion of
the expenses to match the Payroll expense in the right period
Payroll
• Month-End Procedures
Verify all Payroll Batches have been released and posted
1.
•
•
Release and/or post all transactions to the General Ledger
Reconcile the Payroll module to the General Ledger
2.
3.
•
•
•
6.
Compare the P&L Accounts in the Account Distribution report in summary format with
the General Ledger Trial Balance. If there are issues consider:
–
Run the GL Transaction report in Unposted format and include future periods
–
Run the Detail GL report and look for transactions that did not originate in Payroll
–
Verify that last month was reconciled
Consider reconciling the “Earnings & Deductions’ report in Total Format
to the following reports
4.
5.
Batch Register in Summary Format
Field = batch. Status; Operator =NOT IN; Value = P, C, V
941 Worksheet
Unemployment Worksheets (both Federal and State)
Print the Check Register for the period
Close the period
Payroll
• Quarter-End Procedures

Same procedures as Month-End procedures

Reconcile the “Earnings & Deductions’ report in Total Format to the
following reports
•
•
941 Worksheet
Unemployment Worksheets (both Federal and State)
Consider testing W-2’s

•
Use the ‘Earnings & Deduction’ report in Detail Format
Payroll
• Year-End Procedures

Same procedures as Month-End and Quarter-End procedures

Verify all calculations for the current year are processed and cleared
prior to closing the year. (i.e. there should not be anything in the check
preview report)

Close the Payroll using the Year Closing Option

Install Year-End updates
–

Load 2015 Tax Table updates. This must be completed after you close
the Payroll for the year.
–

Tax tables from Microsoft will be available later this month.
Update deduction and earnings information for employees
–

Note: this can be completed before or after you close Payroll for the year
Such as new SUTA rate, new Insurance rates, etc.
Prepare W-2’s
Payroll
• ACA reporting for 2015 and beyond

The Affordable Care Act (ACA) imposes significant information reporting
responsibilities on employers starting with the 2015 calendar year.

New 1094 / 1095 forms to report information on healthcare benefits
offered to eligible employees




www.irs.gov/pub/irs-dft/f1094c--dft.pdf
http://mcgladrey.com/content/mcgladrey/en_US/what-wedo/services/tax/tax-alerts/new-information-reporting-requirements-underthe-affordable-care.html
http://www.insightaccountinggroup.com/news-views/state-federalarticles/year-end-payroll-preperation-tips-2014/
SL Software solution



Silver Brook Systems
Solution for those using the payroll system in SL
www.silverbrook.com/ACA/ACA-Demo-2014-12-04.wmv
W-2 Processing
W-2 Processing


The W2 Calculation process is run to calculate W2’s and can be done
at anytime, or multiple times if needed
- Can be run by pay group and by employee if necessary
- Can be run for any calendar year that you are retaining detail (i.e.
after Payroll has been closed for the year)
After the calculation is processed you can review by printing the W2
forms



Corrections to W2’s can be made in Employee W2 History screen



Compare to ‘Earnings Deduction’ report in Detail Format
Or, after calculation review in Employee W2 History screen
Must be in Initialize mode
If corrections are made (make sure to select ‘Protect Edited W2 Information’ is
checked in the W2 calculation screen. This way edited information will not
change
Corrections to Employee History screen

Must be in initialize mode
W-2 Filing


Run W2’s or prepare W2’s using W2 Electronic file
Electronic filing of W2 data is supported for federal filing only
However, Minnesota accepts EFW2 file
If more than 250 W2’s you must file electronically to the IRS
If more than 25 W2’s you must file electronically to the State of MN
See Fact Sheet 2 from MN Dept of Revenue
W-2 Processing
Tips on W2 Processing


Some issues require modifying maintenance screens
Missing State Employer ID
Deduction Maintenance(History)/W2 Control
Missing Federal Employer ID Company Maintenance
Incorrect Boxes
Deduction or Earnings
Some issues require corrections on Employee W2 History screen




Incorrect wages reported due to incorrect setup of tax exempt deductions
Adjustments for taxable items such as taxable life insurance
Use Earnings & Deductions – Total format to balance to W2 information for
state wages and state withholding amounts to the forms that are filed with
your taxing authority
QTD & YTD information on the Earnings & Deduction report and the
Unemployment Tax worksheet come from data in the Employee History
screen. If an error is found in either report, correct in the Employee History
screen
W-2 Deadlines