AR, AP and GL Module Closing (Sage ERP MAS 90 / 200)

Accounts Receivable

To Business Framework in Version 4.1

Ideally, Accounts Receivable Year-End Processing should be performed before any transactions are updated for the new year. If that is not possible, remember that for Versions 4.0 and earlier the future posting capability for Accounts Receivable is limited to one  accounting period beyond the current period. Failure to close Accounts Receivable before the end of that one future period will cause the summarized totals for the current or future period to not match the transaction detail reports.

1. Before closing the Accounts Receivable module for the year, be certain that:

• All invoices and cash receipts have been entered and updated.
• Finance charges have been run and updated (if applicable).
• Customer statements have been printed (if applicable).
• The Accounts Receivable System Date is set to the last day of your fiscal year.
• A backup of the Accounts Receivable files has been made.
• Any AP from AR Clearing has been processed.

2. From the Reports Menu the following reports should be created and retained:

• Aged Invoice
• Trial Balance (this amount should agree and be reconciled to the General Ledger account before completing year-end processing)
• Customer Sales Analysis
• Cash Receipt Report
• Sales Analysis by Salesperson
• Salesperson Commission
• Sales Tax (if applicable, this report should be printed and cleared each month)
• Monthly Sales Analysis (optional)
• Monthly Cash Receipts
• Accounts Receivable Analysis

3. The Accounts Receivable Full Period and Year End Processing performs the following housekeeping tasks:

• Purges AR Monthly Cash Receipts file (unless retained in AR Options).
• All PTD and YTD fields in the Customer Masterfile are reset.
• Purges PTD and YTD COG in AR Analysis by Salesperson. Moves current year information to prior year. PTD and YTD sales, gross profit, and commission amounts are reset in the AR Salesperson masterfile. YTD information is moved to the prior-year field.
• Purges all temporary customers with zero balances.
• Purges various customer history files according to the parameters you selected in Accounts Receivable Options. We recommend you check these parameters prior to performing year end.
• Sets current fiscal year to next sequential year and the current period changes to 1.

Accounts Payable

To Business Framework in Version 4.2

Ideally, Accounts Payable Year-End Processing should be performed before any transactions are updated for the new year. You do not need to print 1099 forms before proceeding with the Accounts Payable yearend processing because Sage ERP MAS 90 and 200 has a separate 1099 calendar year in Accounts Payable options.

1. Before closing the Accounts Payable module for the year, be certain that:

• All invoices have been recorded in both the Accounts Payable and Purchase Order modules.
• All checks are printed and updated.
• All manual checks written during the month have been entered.
• The current Accounts Payable date agrees with the period-end date.
• Accounts Payable files are backed up.
• AP from AR clearing has been processed.
• 1099 data for the calendar year is verified.

Note: If your 1099 information is not correct, please check with us for instructions before proceeding with year-end closing.

2. From the Reports Menu the following reports should be created and retained:

• Aged Invoice
• Trial Balance (this amount should agree and be reconciled to the General Ledger account before completing period-end processing)
• Vendor Purchase Analysis
• Monthly Purchase
• Check History
• Accounts Payable Analysis
• 1099 printing to paper (verification only)

3. Year-end processing takes place automatically when period-end processing is performed for the last period of the fiscal year. The Accounts Payable Full Period End and Year End Processing performs the following housekeeping tasks:

• Resets the PTD and YTD purchases, payments, and discounts fields in the vendor master file to zero. Moves current year information to prior-year fields.
• Removes all temporary vendors, and any associated memos, with zero balances from the vendor master file.
• Purges vendor, 1099, and check history according to the number of days to retain history in Accounts Payable Setup Options.
• Sets current fiscal year to next sequential year and the current period changes to 1.

General Ledger

To Business Framework in Version 4.0

Sage ERP MAS 90 or 200 allows you to post to unlimited future periods/years; however, you can only print accurate financial statements for one future year.

1. Before closing General Ledger for the year, be certain that:

• The current General Ledger date agrees with the year-end date.
• Balance Sheet is in balance.
• Budget revisions are entered through Budget Revision Entry and the Budget Revision Register is run.
• All activity and adjustments in modules integrated with General Ledger are complete in the year to be closed.
• Recurring Journals have been printed and updated.
• Allocations have been posted if necessary and the Allocation Journal has been updated.
• General Journal adjustments have been entered.

Note: The General Ledger Worksheet is a useful tool in determining which adjustments to make.

• Daily Transaction Register is printed and updated.
• A backup of the General Ledger files has been made. This is even more important for General Ledger than the other modules. Do not neglect this step. Label and store the backup for safekeeping.
• A second backup has been performed. Label and store the backup for safekeeping, once year-end processing is completed.

2. From the Period End Report Selection menu confirm the list of reports you wish to print during year-end processing. The reports you select here will print automatically during year-end processing if you check the Print Period End Reports box on the Period End Processing window. At a minimum, the following reports should be created and retained:

• General Ledger Detail (the reports for periods 01–12 should be printed and retained)
• Trial Balance
• Standard Financial Statements
• General Ledger Analysis
• General Ledger Worksheet
• Balance Sheet

3. Year-end processing takes place automatically when period-end processing is performed for the last period of the fiscal year. Year-end processing performs the following housekeeping tasks:

• Sets current fiscal year to next sequential year and the current period changes to 1.
• Clears all income and expense account balances and posts net profit to the Retained Earnings account.
• Creates next year’s budget based on your setup options in the Auto Budget feature in General Ledger Options.

Note: Options determine how you create next year’s Current Budget. The options are: copy this year’s Actual or do nothing to next year’s Current Budget.

• Transaction history may be purged based on how you have set the Number of Years to Retain General Ledger History setting in the General Ledger Options. It is advisable to retain at least seven years of history.
• To perform period-end processing, select the option Period-End Processing from the General Ledger period-end menu, ensuring that the period number displayed is your final period of the year.

Please call us if you have any questions or concerns regarding year-end processing — we would be happy to assist you.