Tips for Closing Year-End in Microsoft Dynamics GP

by | Updated August 1, 2018 | Dynamics GP

Microsoft Dynamics GP clients who are up-to-date on their annual enhancement receive year-end and tax updates completely free. These changes allow you to comply with filing requirements and automatically update your tax tables with little to no work on your part.

The GP Service pack update is easily downloaded from CustomerSource and ensures you’re ready for the next year’s tax update.

If you’re on GP 2010, your version is no longer supported so in order to receive the year-end and tax updates, you’ll need to upgrade your system. The software upgrade is free and all you need to pay for is the time it takes your partner to complete the install.

If you’re on Microsoft Dynamics 2016 will require you to upgrade to version 2016 R2 for the year-end update.

So, what does the year-end close do?

Year-end close creates your wage file containing all the annual wage information used to generate IRS forms such as W-2’s, W-3s, 1099’s, etc.

Where do I start?

  1. Install GP year-end service pack update
  2. Verify you have the latest 2016 tax updates (15/18/15 was last update)
  3. Complete all 2016 pay runs
  4. Complete payroll month/quarter/year-end processes
  5. Backup company database
  6. Create the year-end wage file
    • Tools > Routines > payroll > year-end closing
    • Type in 2016 in the year field and click process
  7. Make a backup of company database and rename with an alternate name than the first backup
  8. Verify W-2 and 1099 statement information
  9. Archive HR information for inactive employees (optional)
  10. Setup fiscal periods for 2017
  11. Close fiscal periods for payroll series for 2016 (optional)
  12. Install payroll tax update
  13. Process 2017 pay runs
  14. Print W-2 statements, validation report, and W-3 transmittal form
  15. Print 1099 forms

Things to Keep in Mind

  • 2017 payroll tax updates can be installed any time after the year-end wage file has been created
  • If you recreate the 2016 year-end file after your 2017 updates, your FICA limits may be incorrect
  • These steps can be completed from any workstation and will they update the server
  • All users should be out of the system when year-end is completed
  • Download tax tables here: GP Menu > Maintenance > US Payroll Updates > Check for Tax Update
    • The automatic option downloads the current tax table update directly through your internet connection
    • Choose the manual option only if you don’t have an internet connection for the automatic update.

Need assistance with your year-end close or have questions? Contact us.

Related Posts


Submit a Comment

Your email address will not be published. Required fields are marked *

Upcoming Events


13jan11:00 am12:00 pmConfab with Stoneridge Livestream - Technology in 2021 Recap

18jan12:00 pm1:00 pmOpportunities and Threats for the Commodity Processor in 2022

19jan10:00 am11:00 amTax Compliance and Coffee – a Virtual Discussion

26jan11:00 am12:00 pm7 Ways Manufacturers Can Stop Cyber Attacks

26jan2:00 pm2:45 pmKeep Your Data Secure and Move to the Cloud with GP

27jan11:00 am12:00 pmConfab with Stoneridge Livestream - The Year of Integrations


10feb11:00 am12:00 pmConfab with Stoneridge Livestream - Microsoft Teams and Microsoft Dynamics Integration

23feb10:00 am10:30 amDeciphering Manufacturing KPIs – What Your Data is Really Telling You

About Stoneridge
Stoneridge Software is a unique Microsoft Gold Partner, with emphasis on partner. With specialties in Microsoft Dynamics 365, Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP and Microsoft Dynamics CRM, we focus on attracting the most knowledgeable experts in the field to our team, and prioritize delivering stellar solutions with maximum impact for your business. At Stoneridge, we are deeply committed to your results. Each engagement is met with a dedicated team, ready to provide thorough, tailored, and expert service. Based in Minnesota, we intentionally “step into your shoes,” wherever you are. We focus on what you care about, and develop trusting, long-term relationships with our clients.

Subscribe To Our Blog

Sign up to get periodic updates on the latest posts.

Thank you for subscribing!