Everything you need for tax season in Dynamics GP: Year-End Update and Close, 1099s, e-filing, and reversing fiscal close

Everything you need for tax season in Dynamics GP: Year-End Update and Close, 1099s, e-filing, and reversing fiscal close

‘Tis the season…tax season. But just because this is a yearly event, that doesn’t mean it’s all committed to memory. But that’s why we’re here. We’ve included the resources you need to resolve your 1099s in Dynamics GP—including information about year-end, reversing year-end, printing your 1099s, and e-filing!


Year-End Update

You can’t get far without first performing your year-end update and closing procedures. Let’s talk briefly about the update.

The update can be installed at any time for supported versions to ensure your GP system is compliant with year-end financial filing requirements and includes all past GP updates. Remember that you must opt-in to at least one of the yearly updates to continue using GP in its extended lifecycle.

In preparation for your update, here are the big to-dos to keep in mind:

  • Updates are disruptive to normal work processes because they need to be installed on each workstation/computer where GP is used and because all users need to exit the application until the upgrade is complete. So be sure to schedule your update when all users can be logged out of the system and no work needs to take place. (If Syvantis is performing your update, we require a 4-hour window where your employees are out of the system for the update to take place.
  • Back up company databases and ensure those backups are complete before applying any update or patch files. (If Syvantis is performing your update, we backup for you.)
  • Test your 3rd party add-ons, integrations, and customizations before completing the update.
  • Allow a cushion time for testing and training for the upgrades.

You can also reference Microsoft’s GP upgrade checklist for more information on the update timeline and what to expect at each step in the upgrade process.

Syvantis clients can schedule a 4-hour timeframe for their update to take place that is convenient for your team.

Schedule your GP update

Year-End Closing Procedures

When your update is complete, you can close the year. You will want all of your employees logged out of the system before performing the close, and here is Microsoft’s GP Year-End Procedures documentation.

We recommend getting in touch with your Microsoft Partner to ask any questions about year-end. If Syvantis is your partner, we often walk our clients through year-end closing in a Year-End Session, and you can still schedule one with us.

If you’re planning to perform year-end close on your own, we have resources for you. Syvantis CEO and CPA Janelle Riley recently hosted our annual closing procedures webinar, and we’ve compiled year-end documentation for you to use. We’re happy to share these resources with you.

Request our Year-End Documentation

What if I need to reverse Year-end?

Luckily, GP allows fiscal close reversals in the General Ledger with the “Reverse Historical Year” feature, and it’s a pretty simple process. Reversals require you to have a backup prior to close and for all of your employees logged out of the company you’re reversing year-end for.

To reverse close, you simply navigate in GP to “Routines” > “Financial” > “Year-End Closing.” In the window that opens, you’ll see the “Reverse Historical Year” button. If Syvantis is your partner, you’ll reach out to us, and we will revert your system to the backup so you can make any necessary adjustments.

1099 Updates and Printing

After your system is updated and your 2023 year is closed, it’s 1099 time. As of the 18.6 GP update, now all your 1099 forms – including NEC, DIV, INT, and MISC – print with lines and boxes! To do so, you’ll select the Form Type “One Wide with Box” when printing your 1099s (find this under “Routines” > “Purchasing” > “Print 1099”).

This means that, if you choose, you can print your 1099s on regular paper and won’t need to utilize a service (such as Microsoft’s preferred vendor, Deluxe) to print your 1099s.

 

1099 Electronic Filing – Is it required? How do I do it?

Starting in tax year 2023 (this year!), the IRS requires electronic filing for 1099s if your business is filing 10 or more information returns. Here are the General Instructions for Certain Information Returns, where you can find additional information and the due dates for each form type to both the IRS and the Recipient.

However, GP does not support electronic filing of 1099s. So what is Microsoft’s recommendation for e-filing?

The IRS did provide a free 1099 e-filing option for the 2022 tax year, but this option does not work for everyone—there are limitations, such as business size. If you’re interested in this service, you will want to go directly to this IRS link that outlines E-filing requirement and this service to see if you qualify: E-file Forms 1099 With IRIS | Internal Revenue Service (irs.gov).

If you do not qualify for the free IRS e-filing option, you have other options. Below is a list of 3rd parties that provide 1099 e-filing capabilities. Note that not all of these services have been tested or verified by Syvantis. Therefore, we recommend that if you’re interested in one or more of these services, you investigate their offerings to ensure they are a good fit for you.

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