General Module Closing for Sage ERP MAS 90 and 200

Here we provide general module closing procedures for the most common modules in MAS 90/200. For your convenience we indicate the version that a module was updated to the Business Framework. Modules that have not been updated to the Business Framework maintain buckets of data by year (year-to-date, prior-year, etc.). These data receptacles are initialized during year-end processing, so year-end processing is time sensitive and must be performed in the first month of the new year. Regardless of your version, the Payroll module is the most time sensitive when it comes to year-end processing because there is no future period.

Use this document as a guide. If you are using Paperless Office, we highly recommend that you save time, paper, and filing cabinet space by using the Period End feature to electronically archive the reports.

Purchase Order
Updated to Business Framework in Version 4.4

Ideally, Sage ERP MAS 90 and 200 Purchase Order Year-End Processing should be performed before any transactions are updated for the new year. If that is not possible, remember that for Versions 4.3 and prior that the future posting capability for Purchase Order is limited to one accounting period beyond the current period. Failure to close Purchase Order 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. If you have upgraded to Version 4.4, the limit of one future accounting period no longer applies.

1. Before closing the Purchase Order module for the year, be certain that:
   • All purchase orders for the prior year have been entered.
   • All receipts, invoices, returns, and issues have been entered and updated.
   • The current Purchase Order date agrees with the period-end date.
   • A backup of Purchase Order files is made.
2. From the Reports Menu the following reports should be created and retained:
   • Open Purchase Order
   • Open Purchase Order by Item (optional)
   • Purchases Clearing by Item and by Product Line Reports (should reconcile to the General Ledger Control account)
   • Cash Requirements (optional)
   • Receipt History
   • Purchase History
   • Purchase Order Recap (optional)
3. The Purchase Order Full Period and Year-End Processing performs the following housekeeping tasks:
   • Sets the PTD and YTD quantity and dollars purchased fields to zero.
   • Removes completed purchase orders according to the number of days designated in the Purchase Order Setup options.
   • Removes master and repeating orders that have expiration dates on or prior to the period-end date from the open purchase order file.
   • Advances current period in Purchase Order Setup Options to the next period and year.

Sales Order
Updated to Business Framework in Version 4.1

Ideally, Sales Order Year-End Processing should be performed before any invoices are updated for the new year. If that is not possible, remember that for Versions 4.0 and earlier the future posting capability for Sales Order is limited to one accounting period beyond the current period. Failure to close Sales Order 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. Sales orders may be entered with a date of the new year without adverse consequence.

1. Before closing the Sales Order module for the year, be certain that:
   • All Sales Order invoices for the current year have been entered and updated.
   • The current Sales Order date agrees with the period-end date.
   • A backup of the Sales Order data files has been made.
2. From the Reports Menu the following reports should be created and retained:
   • Open Sales Orders
   • Open Orders By Item (optional)
   • Back Order (if applicable)
   • Customer Sales History (optional)
   • Monthly Recap (optional)
3. The Sales Order Full Period and Year End Processing performs the following housekeeping tasks:
   • Resets the PTD and YTD Sales, Cost of Goods Sold, and Quantity Sold fields in the daily and monthly Sales Recap files to zero.
   • Resets the periods for current year, quantity shipped, dollars sold, and cost of goods sold; and moves current year Quantity Sold to Prior Year Quantity Sold in the Sales Order Customer Sales History file.
   • Removes master and repeating orders from the open sales order file that have expiration dates on or prior to the period-end date.
   • Advances current period in Sales Order Setup Options to the next period.

Inventory Management
Updated to Business Framework in Version 4.4

Ideally, Inventory Year-End Processing should be performed before any transactions are updated for the new year. If that is not possible, remember that for Versions 4.3 and prior that the future posting capability for Inventory Management is limited to one accounting period beyond the current period. Failure to close Inventory Management 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. If you have upgraded to Version 4.4, the limit of one future accounting period no longer applies.

The Inventory year-end process should occur immediately after Purchase Order and Sales Order year-end processing and before Accounts Receivable year-end processing.

1. Before closing Inventory for the year, be certain that:
   • All adjustments have been entered and registers updated.
   • Current Inventory date agrees with period-end date.
   • A backup of Inventory files has been made.
2. From the Reports Menu the following reports should be created and retained:
   • Inventory Trial Balance (should tie to the inventory accounts on the G/L Trial Balance for the same period).
   • Stock Status (quantities reflect day printed.
   • Inventory Valuation; it should tie to G/L inventory account as of the day it is printed.
   • Inventory Negative Tier Adjustment (from Period-End Menu). Be certain to update this report.
     Note: Any negative tiers should be resolved before closing and making any new year entries.
3. The Inventory Full Period End and Year End Processing performs the following housekeeping tasks:
   • Calculates beginning average cost (by item by warehouse) and average on-hand quantity.
   • Resets PTD and YTD quantity sold and issued, quantity returned, dollars sold, and cost of goods sold.
   • Moves current year information to prior year fields in the Inventory Item Warehouse Detail file.
   • Removes any zero quantity costing tiers for LIFO, FIFO, Lot, or Serial items (if applicable).
   • Advances current period in Inventory Setup Options to next period and year.

To perform year-end processing, select the option Full Period End Processing. This ensures that the ending period is the last period of your year.

Payroll

The Payroll module is based on a calendar year. There is no future period in Payroll. You cannot post a payroll with a check date in a future quarter until the current quarter is closed by selecting Quarter and Year End Processing from the Period End menu. Before proceeding with year-end processing, make sure the Quarterly Governmental Report, Quarterly 941 Form, and employee W-2 forms have been printed. Consider creating a company to archive your 2010 information and review year-end update information (see page 3).

1. Before closing the Payroll module for the year, be certain that:
   • All payroll cycles have been entered and updated for the quarter.
   • All checks written during the quarter (including manual) have been entered and updated.
   • Payroll System Date is set to the last day of the calendar year.
   • Proper year tax tables are installed (2010 for 2010 Year-End Processing).
   • W-2 forms are printed and verified.
   • Electronic Reporting files, if applicable, are processed and created.
   • A backup of the payroll files has been made. Check and double-check the backup.
2. The following reports should be created and retained:
   • Quarterly Tax
   • Payroll Check History
   • Quarterly Pay Period Recap
   • Earnings
   • Deductions
   • Quarterly Governmental
   • Quarterly 941 Form
   • Benefit Accrual
   • Workers’ Compensation
3. Be certain to reconcile QTD and YTD totals on all reports.
4. Payroll Period-End Processing performs the following housekeeping tasks:
   • Resets the QTD and YTD employee fields to zero.
   • Increments the current year to the next year.
   • Changes the current quarter from 4 to 1.
   • Resets employee benefit limits according to Payroll Options Setup.
   • Resets Pension Plan, Cafeteria Plan Deduction, Allocated Tips, Fringe Benefits, Non-Qualified Plan, and Dependent Care Benefits fields to zero.
   • Sets all quarterly/yearly reports to zero.
   • Removes check history and perpetual history depending upon your system settings.
   • Purges terminated employees.
   • Purges standard deductions that have met goals.

Once you have completed year-end processing for Payroll, be certain to install the Q1 2011 TTU (tax table update) for 2011 before the first payroll run of the year.

Accounts Receivable
Updated 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
Updated 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 year-end 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
Updated 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 01ñ12 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 processingówe would be happy to assist you.