Sage MAS 500 – Year End Closing Processes

How to process period-end closing or year-end closing in Sage MAS 500

I.  SETTING UP GL OPTIONS

Before closing a fiscal year, configure the following options appropriately to achieve the desired results during year-end processing.

Go to the GL Maintenance menu and select GL Setup / Set Up GL Options. Verify the information on the following tabs:

Main Tab

  1. Clear Non-Financial Accounts at year-end.  Select this option to clear non-financial account balances for the next fiscal year. This applies only to accounts with a Non-Financial account group. This option has no effect on statistical data. If you do not select this option, all non-financial account balances are carried over to the next fiscal year.
  2. Default Budget – Select a default budget to use for reporting purposes. If you select Copy Budget as the Year-End Copy option, this budget is also updated during year-end processing.
  3. Year-End Copy – Select to copy budget figures, or the current year’s actual figures, to the budget specified in the Default Budget option. Select (none) if no budget copy at year-end is required.
    Note: Depending on the size of the Chart of Accounts, selecting this option may cause the year-end close to take a great deal longer than a standard period-end process.
  4. Copy Budget – Select the budget used to update the figures for the budget specified in the Default Budget option during year-end processing. This field is disabled if (none) or Copy Actual is specified for the Year-End Copy option.

Additional Tab

  1. Retained Earnings account: Verify the correct Retained Earnings account is specified.
  2. Number of years to track Periodic GL History: Select the number of years to keep transaction summary history and account history in the General Ledger. Data older than this is purged at year-end and is summarized by account and date if the purge option is selected when you close the fiscal year in Process Period End. See additional information regarding purging at the end of this document.
  3. Number of years to keep Trans History Detail: Select the number of years to keep transactional detail in the General Ledger. Data older than this is summarized by date at year-end and is unavailable for reports. See additional information regarding purging at the end of this document.

WARNING:  Periodic GL history enables you to print financial statements and budgets from historical data. Transaction history allows you to print detailed transaction reports from history.  Both account history and transaction history may be purged and therefore render the data unavailable based on the setup of these options.  See the ‘Default Auto Purge’ section for additional information on setting purge options.

Financial Terms Tab

Review the terms used and change as needed for financial reporting purposes.

II. CLOSING THE YEAR

Use the Process Period End task to close the fiscal year. Process Period End verifies there are no unposted batches for the period, and when selected, performs each of the following tasks: print period end reports, purge GL data, and close the fiscal year. Year-end processing is automatically performed when the Current Period specified in Set Up GL Options is set to the last period of the current fiscal year.  Use the following as a guideline for closing the fiscal year:

  1. Complete posting, adjusting, and closing procedures for all subsidiary modules.
  2. Make a backup of both the Sage MAS 500 application and system databases.
  3. Complete posting of all GL pending batches, recurring transactions, and adjusting entries in Process Journal Transactions using an appropriate posting date.
  4. Print all year-end reports as required by your accountant or bookkeeper.
  5. Verify applicable GL account balances agree to month-end report balances in modules such as AR, AP, and MC.
  6. Make any necessary adjustments to the GL.
  7. Reprint year-end reports, if necessary.
  8. Print final Financial Statements and verify they balance.
  9. Make a backup of both the Sage MAS 500 application and system databases.
  10. Complete year-end processing by selecting the Process Period End task from the GL Activities menu. The following options are available:
    1. Print period-end reports (optional). To select which reports to print, use the Select Reports option and select only the desired reports.  Following these steps, you can further customize the reports by selecting the individual report from the GL Reports menu and creating a Saved Setting:
      1. From the GL Reports menu, select the desired GL report, for example the GL Trial Balance.
      2. Make the required changes to the sort and selection criteria, and print options such as Print Report Settings and Include Zero Balance Accounts.
      3. Save the report setting and name it “Period End”.  These report settings are used when you print reports during period end or year-end processing.
    2. Purge GL data (optional). If the purge data flag is set, the purge occurs before the period is incremented. The purge process uses the parameters configured within the Set Up GL Options task and removes data accordingly. Sage Software does not recommend selecting this option during year-end, because it may cause the year-end close to take a great deal longer to process.
    3. Close Period X-YYYY ending on MM/DD/YY is activated only if the period selected in the header is the oldest open period; otherwise, this option is disabled.  This option should be selected after all the steps stated above have been completed and account balances are finalized for the year.
      Note:  A period cannot be closed in the General Ledger if that period is still open in a subsidiary module. A warning displays the suspense account has a balance or if any unposted GL batches have a posting date prior to the period being closed.
  11. If the period closed is the same as the Current Fiscal Year and Current Period defined in GL Options, the Current Year and Current Period are incremented in GL Options.  The Status in GL Setup Fiscal Calendar for the period being closed is set to “Closed”.
  12. Make a backup of both the Sage MAS 500 application and system databases.
  13. Adjust budget figures for the new year as necessary.
  14. Print the new period’s financial statements and verify that the Balance Sheet accounts have the appropriate beginning balances, that Retained Earnings is correct, and that the beginning balances for the Income Statement accounts are 0.00.
  15. Make a backup of all company data and place it in safe permanent storage.  This gives you a permanent record of the company’s financial position at the end of the year, and can be restored if necessary.

III. ADDITIONAL INFORMATION

Journal Entry adjustments are made in GL through the Process Journal Transactions task.  Following are common adjustments made before closing a GL period:

  1. Depreciation/Amortization expense is calculated and booked.
  2. Loss Provisions are made to applicable accounts.
  3. Recurring journal entries are noted.
  4. Allowance is made for Doubtful Accounts.
  5. Inventory is adjusted to physical counts and analyzed for obsolescence.
  6. Income and expenses are accrued as necessary.
  7. Deferred Income is recorded.
  8. Correction of any errors in prior postings.
  9. See your accountant or bookkeeper for further information regarding adjustments.
  10. Year-end processing and period-end processing are essentially identical.  The most significant difference is that year-end processing can generate the new Budget for the following year.
  11. Transactions can be posted only to “open” periods. Any closed periods can be reopened through Set Up Fiscal Calendar; however, after a period is “reopened”, that period and all future periods must be reclosed.  Any transactions posted to a prior period change the related reports and financial statements. Therefore, the ability to “open” a closed period should be subject to management approval.

IV. DEFAULT AUTO PURGE

Sage MAS 500 is designed to automatically purge data at preset time periods for each individual module. You can change the default purging periods to suit your particular needs.

Purging data is not usually necessary; most businesses want to keep records much longer than the default period. Sage Software recommends disabling the feature. If you do not wish to purge data at a specific time, follow the instructions below to DISABLE automatic purging:

The list below shows the preset or default automatic data purges for individual modules. Sage Software recommends you change the purge value fields in the Set Up (xx) Options task for each registered module to 999. Note: (xx) = module abbreviations.

Common Information (CI)

  • Sales Tax: 24 Periods
  • Sales Tax History: 5 Years

General Ledger (GL)

  • Sales Tax History: 1 Year

Accounts Payable (AP)

  • Voucher and vendor data: 24 Months
  • Vendor data: 5 Years

Accounts Receivable (AR)

  • History retained by month: 24 Months
  • History retained by year: 5 Years

Multicurrency (MC)

  • Exchange Rates: 4 Months

Cash Management (CM)

  • Bank Account History: 5 Years
  • Bank Transactions: 24 Months
  • Bank Statements: 24 Months

Purchase Orders (PO)

  • Purchase Orders: 24 Months
  • Requisitions: 24 Months
  • Receivers: 24 Months

Inventory Management (IM)

  • Inventory History: 5 Years
  • Purchase Product Line: 5 Years
  • Lot/Serial Transactions: 5 Years
  • Inventory Transactions: 24 Months
  • Outdated Prices: 24 Months
  • Inactive Item: 4 Months

Sales Order (SO)

  • Sales Orders: 24 Months
  • Shipments: 24 Months
  • Quotes: 6 Months
  • Sales Analysis History: 5 Years

Go to ‘Set Up Options’ in each module and reset the purge fields to 999.

Note: If the data must be purged, contact your SQL data base administrator or your Sage Software business partner for assistance..


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