Year-end Processing Tips Volume 7 – Closing the A/P Module

The Accounts Payable module was added to the Business Framework in Sage ERP MAS 90 and 200 version 4.2, so all data entry in that version and above is date sensitive. If on version 4.1 or earlier, you should perform year-end closing prior to posting any invoices or disbursing checks in the new year; failure to close the A/P module 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. 

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

  • All invoices for the current year have been entered and updated in both the A/P and P/O modules.
  • All checks are printed and updated.
  • All manual checks written during the month have been entered and updated.
  • The current A/P date agrees with the year-end date.
  • You have a backup of the Accounts Payable module files.
  • Any AP from AR Clearing has been processed.
  • 1099 data for the calendar year is verified. (Note: If your 1099 data is not correct, please check with your Sage Business Partner before proceeding with year-end closing.)

Print and review the following reports prior to closing the year:

  • Accounts Payable Aged Invoice Report
  • Accounts Payable Trial Balance – this report should reconcile to the balance of the General Ledger A/P accounts
  • Vendor Purchase Analysis (optional)
  • Monthly Purchase Report (optional)
  • Check History Report
  • Accounts Payable Analysis (optional)
  • 1099 printing to paper (for verification purposes)

During the Accounts Payable Full Period and Year End Processing, the following tasks are performed:

  • Resets the PTD and YTD purchases, payments, and discounts fields in the vendor masterfile to zero. Moves current year information to prior-year fields.
  • Removes all temporary vendors, and any associated memos, with zero balances from the vendor masterfile.
  • 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”.
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