Are You Prepared for Sales Tax Auditors?

Due to the recession, most states are facing major budget deficits and state auditors are looking to sales tax as a way to help generate more revenue.  This can be a scary thought for businesses that manage sales tax compliance manually because even the simplest of mistakes can cost thousands of dollars in the event of an audit.

One of the first things to understand when it comes to audit risk is how nexus affects your business. Nexus in general terms means a connection. In the tax world it describes a situation in which a business has a “nexus” or presence in a state that makes them subject to collecting and remitting taxes for sales within that state.  Seems pretty straightforward, right?  Not exactly.

Most states used to define nexus as an office, warehouse or employee living in that state.  Fast forward to the present and it is not as cut and dry.  With states trying to generate more revenue, the lines have grayed over the years and states have broadened their definition of nexus.  Believe it or not, if you meet one or more of the following scenarios, you could be responsible for nexus in some states:

  • – Trade show attendance
  • – If a company has an associated business that shares a trademark or a substantially similar name
  • – If an affiliate runs “click-through” sites on behalf of Internet retailers and receives compensation for sales made as a result of that activity.  (If the affiliate lives in a particular state, then the sales taxes will need to be collected and remitted by the Internet retailer that received the click-through).
  • – If repair, installation or maintenance service is performed by your employees or a third party
  • – If your company ships a returnable containers into a specific state
  • – If a company has representatives regularly visit customers in a particular state
  • – If a company is using a company-owned vehicle that crosses state lines to deliver products

As you can see, it is now more important than ever to review the laws in each state where you conduct business to ensure that you are in compliance.  Often times, businesses do not even realize that they are out of compliance until they are audited, so the best defense against being audited is automation!

To learn more about the current “Amazon Laws” and about tips to navigate through the aggressive auditors targeting out-of-state retailers, please join Tridea Partners and Avalara on May 2nd at 10 AM PST for the educational webinar, Main Street vs. the Internet – How Online Sales Tax Affects Every BusinessRegister today!

Tridea Partners has partnered with Avalara, the leading provider of sales tax automation to help businesses from all industries address the complex challenges that businesses face when calculating sales tax rates, managing exemption certificates, filing returns and remitting payments. We look forward to helping you make sales tax management less taxing for your business!

Dynamics GP Journal Entry pasted from Excel with free Add-in

Ever find it a little to tedious when inputing jounral entries in Dynamics GP? Well, developers listened and created a free add-in to simplify the task. By downloading the tool, you will be able to save time and increase your efficiency.

Check out how this works

 

To get started, simply download the tool from the link below and place the DLLs in your AddIns folder.

http://www.di.jo/GPExcelPaste.aspx

Then, create an excel view like the following:

Dynamics GP Journal Entry

Highlight and copy the data in this excel table

Navigate back to the Transaction Entry window of Dynamics GP and select additional>>Paste from Excel (or CTRL + F for shortcut)

Next, spend the extra time you saved checking out the rest of the GP tips on Tridea Partners’ blog!

Posting to a Closed Year in Microsoft Dynamics GP

Recently, we received the question of whether a user could enter a journal entry for an adjustment to a closed year in Dynamics GP.  The answer is that, this is possible depending on how far back you need to post. The rule follows that you cannot post to more than one closed year.  So if I have closed 2012, I can only post back to 2011 and no further.  As such, when closing the current year, it is a good idea to verify that all closing entries and adjustments to the previous year have been made.

Let’s say you are ready to close 2012 but need to post a JE adjustment for 2011.  To do this, you will need to reopen the fiscal period in which you will be posting by navigating to the Fiscal Periods Setup window.  Go to Microsoft Dynamics GP > Setup > Company > Fiscal Periods.

Select the year that needs to be reopened.  Then, deselect the appropriate checkbox corresponding to the period and module you need to reopen. In my case, I have deselected the Financial module for December of 2011 because I need to make a journal entry adjustment to December 2011

General Ledger post to a prior fiscal year in Dynamics GP

Next, you will need to verify that you are allowed to post to history.  Verify that the Allow Posting to History option in the General Ledger Setup window is selected. Go to Microsoft Dynamics GP > Tools > Setup > Financial > General Ledger.

General Ledger

Now, you are ready to create and post your transaction entry for the closed year.  Once you are finished, go back to the General Ledger setup and unmark the Allow Posting to History option (you may leave it marked if that is the default setup), and close the same fiscal period that was opened earlier, using the Fiscal Periods Setup window.

Navigation Paths:
General Ledger Setup – Microsoft Dynamics GP > Tools > Setup > Financial > General Ledger
Fiscal Periods Setup – Microsoft Dynamics GP > Setup > Company > Fiscal Periods

If you do need to post to more than one closed year, Microsoft does offer a service to achieve this.  For more information, please contact support@trideapartners.com.

Tridea Partners’ Microsoft Dynamics GP 2013 SD Launch Event

Corporate CFO’s, Controllers, Accounting Managers and IT professionals alike gathered in the mezzanine of Stone Brewing Co. last night to view demonstrations highlighting the new features of Microsoft Dynamics GP 2013. This was the third year that Tridea Partners has hosted a product launch event, and 7th customer event hosted at the local brewery, and Tridea client.

The night kicked off with hors d’oeuvres and drinks, and a networking session where industry professionals were able to socialize with peers from all industries.

Craig Crescas gave a Dynamic presentation on GP 2013, and had his audience on their feet about the new product launch. The night was an overall success, leaving attendees excited about GP 2013’s innovative new Web Client, and features like document attach, dashboards, enhanced integration to Excel and hundreds of new functionality features – to name a few.

For a more extensive Dynamics GP 2013 overview, click here.

If you were unable to attend the event and would like to request a demonstration or consultation on Dynamics GP 2013, please contact sales@trideapartners.com.

 

Balance Sheet Reporting Without Closing YTD in Dynamics GP

It’s almost that time again. Soon it will be time to complete another year-end close in GP. Since GP will only allow adjusting entries to the SINGLE LAST closed year in GP, it can sometimes be a scary process for users. Due to ongoing audits or other various factors, it may be inevitable that adjustments will be needed for more than just one historical year. Without closing a year, the amounts for balance sheet accounts will not roll over as beginning balances for the next year. For those instances, here is a little trick that will allow for accurate balance sheet reporting, without having to complete the official year-end process in GP.

Below is an example of a Management Reporter column definition. In this example, column B is mapped to pull YTD data from the last month of the last fiscal year. Column C is mapped to pull YTD information for the current fiscal year. Both columns B and C are configured as “non-printing” columns. Finally, column D is a calculation that adds columns B and C. Voila! Accurate balances without closing the year in GP.

 

balance sheet reporting