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Sage 100 ERP - Year End Tips

With year end 2013 around the corner, here are some helpful reminders for Sage 100 (MAS90/MAS200).

1. Year End Checklist

Here are year end closing checklists for General Ledger, Accounts Receivable and Accounts Payable.

Before You Start

  • Backup your AR/AP/GL files and label them as “prior” to Year End processing.
  • Make sure the AR/AP/GL system date is set to the last day of your fiscal year.

 Accounts Receivable

  1. Ensure all invoices and cash receipts have been recorded for the current year.
  2. Apply finance charges to past due customers.
  3. Note: If you answered “None” for “Finance Charge Computation Method” in A/R Set Up Options, then continue.
  4. Print statements for the appropriate customers.
  5. Note: If you did not activate the “Customer Statements” option in A/R Set Up Options, continue to the next step.
  6. Select “Period End Processing” from the Period End menu, and choose the Full Period & YE Processing option.
  7. Select the reports you wish to print for the period. At minimum, we recommend Aged Invoice Report and A/R Trial Balance.
  8. Complete year end processing, backup AR files, and label them as “after” YE processing.

Accounts Payable

  1. Ensure all invoices and checks have been entered and updated for the current year.
  2. If your fiscal year coincides with the calendar year and your company issues 1099 Forms for vendors, then print, verify, and clear the 1099 Forms.
  3. Select “Period End Processing” from the Period End menu, and choose the Full Period & YE Processing option.
  4. Select the reports you wish to print for the period. At minimum, we recommend Aged Invoice Report, A/P Trial Balance, and Check History Report.
  5. Complete year end processing, backup AR files and label them as “after” YE processing.

General Ledger

  1. Make sure all activity and adjustments in modules integrated with General Ledger have been completed in the year to be closed. Note: Check the Module Closing Order article on the next page below.
  2. Print and update the Recurring Journals. Refer to the Recurring Journal section on page 99 of the GL Manual.
  3. Print the General Ledger Worksheet and log all essential adjustments.
  4. Enter adjustments in General Journal Entry. This includes entries logged on the General Ledger Worksheet (above).
  5. Print and update the Daily Transaction Register.Note: The system will not allow YE processing to continue until after this step is performe
  6. Enter budget revisions through Budget Revision Entry and update the Budget Revision Register.
  7. Go to G/L Options. Confirm proper settings for these fields:
    1. Auto budget Option field is set to the option you want to create next years’ budget
    2. Number of years to Retain in Transaction History.
    3. Number of Years to Retain in Summary HistoryNote: Setting number of years to “1” will not retain history - 1 means current year only.
  8. Make sure the Balance Sheet is in balance
  9. Print the General Ledger Analysis (not “required”)
  10. Update & print Custom Financial Reports (not “required”)
  11. Select, modify, and update the Allocation Journal.
  12. Select Period End Processing, and choose the Full Period End Processing option.
  13. Select the reports you wish to print for the period. At minimum, we recommend Trial Balance, Standard Financial Statements, and General Ledger Detail Report.
  14. Complete period end processing, backup general ledger files, and label them as “after” YE processing.

2. Order to Close Modules

The sequence in which you close your Sage 100 ERP modules is important. A year-end process in one module often writes data to another module. The only way to 'reverse' year end processing in Sage 100 ERP is to restore from backup. Important: Remember to backup your system, before closing modules.

  1. Bill of Materials*
  2. Work Order Processing*
  3. Bar Code
  4. Purchase Order Processing
  5. Sales Order Processing
  6. Inventory Management
  7. Material Requirements Planning (MRP)*
  8. Timecard
  9. Electronic Reporting/Magnetic Data*
  10. Payroll (Quarter-end processing)
  11. Accounts Receivable
  12. Accounts Payable
  13. Job Cost
  14. General Ledger

 *Note: While there is no formal closing procedure in the Bill of Materials, Work Order, MRP, and Electronic Reporting modules, all transactions in those modules should be posted before starting closing procedures in the modules that follow them (i.e. Post transactions in Work Order before closing Purchase Order, Sales Order, and Inventory).

 Remember, this is just a general guideline. If you own modules that aren’t listed above or you run third party add-on products or Sage Endorsed Solutions, please contact us to discuss specific closing procedures for your company.

3. 2013 Year End FAQ's

Q. Can I print financial statements for the next fiscal year PRIOR to performing year end processing?

YES. In the Fiscal Year field within the applicable report window, simply select the fiscal year to print. Do NOT manually change the fiscal year in General Ledger Options in order to print financial statements for the next fiscal year.

Q. After year end processing, can I delete accounts that will no longer be used in the new fiscal year and still run comparison statements?

Information about prior fiscal years is stored by account number. These account numbers must be retained for as long as you require comparisons. Instead, you can set the status of an account to Inactive to prevent future postings but still retain the account number for comparisons. On the Main Tab in Account Maintenance, select Inactive in the Status field and click Accept.

Q. Can I open a closed fiscal year to make General Ledger postings/adjustments?

YES. If you retained detail history for a prior fiscal year by entering the ‘Years to Retain General Ledger History’ field in GL Options, you can reopen the closed fiscal year and post to it.

To Post to a Closed Fiscal Year:

  1. Select General Ledger Setup menu > GL Options
  2. On the Main tab, in the Current Fiscal Year field, select the past fiscal year to reopen
  3. In the Current Period field, select the accounting period to post to and click Accept
  4. In General Journal Entry or Transaction Journal Entry, enter the transaction to the reopened fiscal year and period and update the journal entry
  5. Reprint year end reports when you’re finished
  6. Go back to General Ledger Options Main tab and select the current year in the Current Fiscal Year field, and the current period in the Current Period field. Click Accept. 

You’ve just re-opened the closed fiscal year, posted a journal entry, and reverted back (in step 6) to the current fiscal period and year. Note: Closed fiscal years can only be reopened in the General Ledger module.

Important Tax Deadlines

January 31, 2014 - Deadline to issue W-2, 1098, and 1099 forms to employees and independent contractors.

January 31, 2014 - Deadline for filing quarterly payroll & unemployment tax retruns.

Depreciation and Section 179 Expense

Section 179 has been enhanced for the 2013 and 2012 tax years (2012 is retroactive). This is due to the passage of H.R.8: American Taxpayer Relief Act of 2012 (The "Fiscal Cliff / Fiscal Crisis" Bill).

 Get full details at http://www.section179.org

-          2013 & 2012 (Retroactive) Deduction Limit: $500,000

-          2013 & 2012 (Retroactive) Limit on Capital Purchases: $2,000,000

-          2013 and 2012 (Retroactive) Bonus Depreciation: 50%

Standard Mileage Rate

The standard mileage rate for operating an automobile for business use is 56.5 cents per mile driven throughout 2013. The rate increased 1 cent from the 2012 rate. Full mileage details at IRS.gov

 *Note: this information is intended as a helpful reference and is not to be relied on as qualified advice from a tax professional.

4. Tips for a Successful Year End with Sage 100 ERP

  1. General Ledger Closing - While it’s a good idea to close modules in a timely fashion, your General Ledger can remain open for as long as you need while awaiting final processing in other modules (or audit adjustments). A GL that’s still open for 2013 will NOT prevent you from entering transactions for the new year.
  1. Payroll Planning - Even if your company is on a fiscal year, you’ll need to close out payroll at the end of the calendar year. It’s a good idea to begin reconciling all of your payroll tax reports to the general ledger in early December. This gives you a chance to catch errors early and avoid filing an amended payroll tax return.
    Note: All W-2’s and quarterly reports must be printed before processing the first payroll for 2014.
  1. Check Your Version Number - Closing procedures can vary depending on which version of Sage 100 ERP you’re currently running. For Version 4.0 or above, do the following to identify both your version number and service pack: Select Help > About Sage 100 ERP
  2. We're here to help. - As you begin year end closing procedures and prepare to start fresh in 2014, be sure to contact us if you need assistance during this important time of year.

Be aware of these changes coming in 2014.