How to Run The Month End

Transcription

1 How to Run The Month End Sage Accounts has been designed to make your month end procedure as smooth and trouble free as possible. The Month End routine is an optional procedure which groups together routines that would be run on a monthly basis. If you do not want to run any of these routines, or clear the month to date turnover figures on the Customer and Supplier Records, then you do not need to run the Month End option in Sage Accounts. This article contains the following sections: When to run the Month End option - As Sage Accounts is date sensitive, you can process into the following month before running the Month End option. The month end postings - This section explains the postings made when you run the Month End option. To prepare for the month end - This section explains the procedures that you should complete before running the Month End option. To run the Month End option - This section explains how to run the Month End option. To prepare for the new month - After running the Month End option, there are some routines that should be carried out before you start to process for the new month. Month End checklist - This section provides a summarised month end checklist.

2 When to run the Month End option Most companies are not ready to run a month end on the last day of the month, as they quite frequently have to wait until their information is complete. For example, when they have received and entered all of their supplier invoices for the relevant month. Sage Accounts is date sensitive, and allows you to continue posting into the new month before you close off the current month. Also, because you can run your reports retrospectively, you can print them after you have entered all of your information. Note: The Product Valuation report cannot be run retrospectively. If you need to run this report you must run it on the last day of the month before entering stock transactions for the new month. The Clear Turnover option on the Customer and Supplier Records is not date sensitive, this means that when you run the Month End option the value on the Customer and Supplier Records is reset to zero. These figures are only used for reporting purposes. The month end postings The following postings are made when you run the Month End option: Prepayments - Sage 50 Accounts only - A prepayment is the process of deferring expenditure to the accounting period in which it is incurred. Automatic prepayment postings can be set up using the Prepayments option in the Nominal Ledger module. For further information about this, please refer to contact Sage Support. Accruals - Sage 50 Accounts Only - An accrual is the process of matching expenditure or income to the accounting period in which it was incurred, rather than paid. Automatic accrual postings can be set up using the Accruals option in the Nominal Ledger module. For further information about this, please contact Sage Support. Fixed Assets Depreciation - Sage 50 Accounts Only - Depreciation of your fixed assets is an expense to your company that can be offset against the profits you make. Automatic depreciation postings can be set up on the Postings tab of the Fixed Asset Records. For further information about this, please contact Sage Support. Note: Automatic fixed asset depreciation is only available in Sage 50 Accounts Plus, Sage 50 Accounts Professional and Sage Line 50 Accountant Plus and Financial Controller. Clear Month To Date balances from the Customer and Supplier Records - The Clear Turnover option is not date sensitive, this means that when you run the Month End routine and select this option the M.T.D. values

3 on the Customer and Supplier Records are reset to zero. These figures are only used for reporting purposes. To prepare for the month end 1. The Product Valuation report cannot be run retrospectively because any movements in stock during the new month affect this report. Therefore, if you need to run this report you must run it on the last day of the month to produce accurate figures. 2. The Clear Turnover Figures option in the Month End routine zeros the M.T.D. value from the Sales tab on the Customer Record and the Purchase tab on the Supplier Record. This is not date sensitive; therefore, if you need to run this, you should do so before processing beyond the Month End date. The M.T.D. figure is used for reporting purposes and can be entered manually, if required. 3. Check that you have posted all transactions for the current period. 4. Sage 50 Accounts - Set up any automatic prepayments, accruals and depreciation. For further information about this, please contact Sage Support. 5. If you are using Sage Line 50 v9.xx and above or Sage 50 Accounts with the Foreign Trader option enabled, and you use foreign currency bank accounts, ensure that you have run the Foreign Bank Revaluation Wizard. For further information about this, please press F1 to open the Help system. 6. Check you have set up and processed any recurring entries for the required period. For further information about this, please press F1 to open the Help system. 7. Optional - Reconcile all your Sage bank accounts with your actual bank statements. For further information about this, please contact Sage Support. 8. Optional - Post your monthly opening and closing stock journals to ensure that your Profit and Loss and Balance Sheet reports are correct. For further information about this, please contact Sage Support. 9. Take a backup of your data files and store it in a safe place. Label this backup 'Before Month End'. For further information about this, please press F1 to open the Help system. 10. Change your program date to the month end date - This ensures that all postings are made with the correct date, and therefore affect the correct monthly accounts. To change the program date, open the Settings menu, choose Change Program Date then enter the required month end date. You have now completed your preparation and are ready to run the Month End option.

4 To run the Month End option 1. Open the Tools menu, choose Period End then choose Month End. The Month End window appears. 2. From the Month End window, select the required month end options. Note: For further information about this, please refer to the section The month end postings earlier in this article. A tick appears in the selected options. 3. To run the Month End, click OK then when prompted to confirm that you want to continue, click Yes. Tip: If required, to exit without running the month end or return to the Month End window, click Cancel or click No. The month end postings are made and the program desktop appears. You have now completed the month end and are ready to prepare for the new month. To prepare for the new month 1. Run the Check Data option - This ensures that you do not have any errors on your data files, if any errors are reported, you should correct these before proceeding. For further information about this, please press F1 to open the Help system. Note: If you use the Retrospective Product Valuation, you should not run the Clear Stock option. 2. Optional - Run the Clear Audit Trail option. For further information about this, please contact Sage Support. 3. Take a backup of your data - Label this backup 'After Month End' and store it in a safe place. For further information about this, please press F1 to open the Help system.

5 Month End checklist Preparing for the Month End Ensure all transactions have been posted for this period. Make sure you have set up automatic prepayments and accruals and depreciation for Month End processing. Sage Line 50 v9.xx and above - If you have the Foreign Trader option enabled, run the Foreign Bank Revaluation Wizard. Make sure you have set up and processed any recurring entries required for this period. Optional - Reconcile all bank accounts to your bank statement using the Bank Reconciliation option. Optional - Post your opening and closing stock journals. Take a back up of your data and label it 'Before Month End'. Change the program date to the correct month end date. Run the Month End option Preparing for the new month Run the check data option. Optional - Run the Clear Stock option. Optional - Run the Clear Audit Trail option. Take a backup of your data and label it 'After Month End'. You have now successfully completed the month end in Sage Accounts. It is possible to make adjustments after you have run your month end, in a way that does not affect the previous month's accounts. For further information about this, contact Sage Support.

6 Author: Sage 50 Support Team Product & Version: Instant V15, V16. Sage 50 V2009, V2010, 2011 Revision Date: Sep 2010 Publication Number: 11315