Here are year end closing checklists for General Ledger, Accounts Receivable, and Accounts Payable to help ensure that all tasks are processed and in the proper order.
Note: these modules all begin with the following 2 steps:
- 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
- Ensure all invoices and cash receipts have been recorded for the current year.
- Apply finance charges to past due customers.
- Note: If you answered “None” for “Finance Charge Computation Method” in A/R Set Up Options, then continue.
- Print statements for the appropriate customers.
- Note: If you did not activate the “Customer Statements” option in A/R Set Up Options, continue to the next step.
- Select “Period End Processing” from the Period End menu, and choose the Full Period & YE Processing option.
- Select the reports you wish to print for the period. At minimum, we recommend Aged Invoice Report and A/R Trial Balance.
- Complete year end processing, backup AR files, and label them as “after” YE processing.
Accounts Payable
- Ensure all invoices and checks have been entered and updated for the current year.
- 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.
- Select “Period End Processing” from the Period End menu, and choose the Full Period & YE Processing option.
- 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.
- Complete year end processing, backup AR files and label them as “after” YE processing.
General Ledger
- 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 elsewhere in this newsletter.
- Print and update the Recurring Journals. Refer to the Recurring Journal section on page 99 of the GL Manual.
- Print the General Ledger Worksheet and log all essential adjustments.
- Enter adjustments in General Journal Entry. This includes entries logged on the General Ledger Worksheet (above).
- Print and update the Daily Transaction Register.
- Note: The system will not allow YE processing to continue until after this step is performed.
- Enter budget revisions through Budget Revision Entry and update the Budget Revision Register.
- Go to G/L Options, confirm proper settings for these fields:
- Auto Budget Option field is set to the option you want to create next years’ budget
- Number of Years to Retain in Transaction History
- Number of Years to Retain in Summary History
- Note: Setting number of years to “1” will not retain history – 1 means current year only.
- Make sure the Balance Sheet is in balance.
- Print the General Ledger Analysis (not “required”)
- Update & print Custom Financial Reports (not “required”)
- Select, modify, and update the Allocation Journal.
- Select Period End Processing, and choose the Full Period End Processing option.
- Select the reports you wish to print for the period. At minimum, we recommend Trial Balance, Standard Financial Statements, and General Ledger Detail Report.
- Complete period end processing, backup general ledger files, and label them as “after” YE processing.
Get All the Checklists
TIP: Year end checklists for all modules can be viewed onscreen and are accessible from the Sage 100 Help section of the software.
TIP: How to Correct an Out of Balance General Ledger
There are a variety of reasons that your general ledger can get out of balance. In the video below, you’ll learn how to discover and correct the out-of-balance situation including instructions for making one-sided journal entries.
Year End Tips and Resources
Affordable Care Act (ACA) Info
2015 marks the first year that some companies may be required to report under the Affordable Care Act (ACA). The size and structure of your workforce determines how and when you’re supposed to report.
That’s why Sage has put together an ACA Resource Center to help you understand the provisions and how to comply using your Sage 100 software. Here are some popular ACA resources to consider reviewing.
Which of The New IRS Forms Should You File?
This downloadable reference guide helps you understand which forms to file and when.
How to Set Up ACA Tracking in Sage 100
Step-by-step instructions for setting up Sage 100 for ACA.
How to Report Employer-Sponsored Healthcare Coverage on the W2 Using Sage 100
Setting up Sage 100 Payroll to track and report the cost of coverage under an employer-sponsored group health plan.
ACA Video Gallery
A collection of “How-To” videos for ACA setup, generating forms, and more using Sage 100.
ACA reporting tools are available for Sage 100 Versions 4.5 through 2016. The resources and articles above are simply a guide to using Sage 100 for ACA compliance.
Be sure to consult with your accountant or tax advisor for legal advice or personalized guidance.
Sage 100 Year End Center
Sage has created a Year End Center that provides valuable resources to guide you through a smooth year end closing process in Sage 100 including:
- Year End Articles and Checklists
- Video Tutorials
- Online Q&A and Discussion Forum
- Live Chat With Tech Support
- Tax Forms, Payroll, and Report Guidance
Take advantage of this free and valuable resource!
Supported Versions Reminder
Sage officially supports the current plus 3 prior versions of Sage 100. With the release of Sage 100 2016, here’s a look at updated list of supported versions and retirement dates:
Note: Sage will release the last product update for Sage 100 versions 4.50 and 2013 (aka version 5.0) to enable the recording of Payroll data for the Affordable Care Act (ACA), in November 2015.