Year-end Processing Tips Volume 4 – Closing Inventory Module

Inventory Management was added to the Business Framework in version 4.4, so if your version of Sage ERP MAS 90 or 200 is 4.3 or below, you should perform year-end closing in the inventory module before updating any transactions for the new year. Remember, prior to the Business Framework modules were limited to one current and one accounting period beyond the current period. Failure to close the Inventory Management module on time in version 4.3 or below will cause the summarized totals for the current or future period not to match to the transaction detail reports.

Year-end processing for the Inventory Management module should occur immediately after Purchase Order and Sales Order year-end processing. Before closing the year in the Inventory module, be certain that:

  • All adjustments have been entered and registers updated;
  • Physical Count has been entered and updated, if applicable;
  • The current Inventory Management module date agrees with the year-end date; and
  • You have a backup of the Inventory Management files.

Print, review and retain the following Inventory Management reports:

  • Inventory Trial Balance – should reconcile to the inventory accounts on the G/L Trial Balance for the same period.
  • Stock Status Report – keep in mind that the quantities shown will reflect the day the report is printed.
  • Inventory Valuation Report – should reconcile to the G/L Inventory account as of the day it is printed.
  • Inventory Negative Tier Adjustment (from the Period End menu) – printed for FIFO and LIFO items; make sure that you resolve any negative tiers and be certain to update the report prior to closing.

During the Inventory Management Full Period and Year End Processing, the following tasks are performed:

  • 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 fields.
  • Moves current year information to Prior Year fields in the Inventory Item Warehouse Detail table.
  • Removes any zero quantity costing tiers for LIFO, FIFO, Lot, or Serial valued items
  • Advances the current period in Inventory Management Setup Options to the first period in the new 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.

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