Month End, Quarter End, Year End Procedures

Transcription

1 Session 1 7 Month End, Quarter End, Year End Procedures Presented By: Kathy Lewis Kathy Lewis Consulting kathy@klcvision.com Credits/Revision History Original Author(s): Lenni Witt, Aronson LLC Revised Date: Major Revisions Include: Tuesday, October 18 1:00pm 2:30pm Parlor A Month End, Quarter End, Year End Procedures 1

2 Here are some Helpful Hints: Documenting the process 1. While going through this process consider building task sets on the various Sage 300 CRE Desktops that execute the period end procedures. Don t forget to document the processes, Reports & inquiries used to complete. a. These should be arranged on the My Tasks window in succession so as to document the order in which each item is accomplished. 2. This will help to assure that no vital step is missed and help anyone following you in the process to know what process has worked successfully in the past in the event that you are not available. 3. Desktop configurations can be saved, do so w/ specific names. 4. Specifically named configurations will not be overwritten. Backups 1. Perform a complete 3 rd party backup. 2. If using the default Sage 300 CRE installation path, don t forget to back up your reports and inquiries: Program data\sage\timberline Office\Accounting\9.5\Reports Program data\sage\timberline Office\Accounting\9.5\Inquiries Program data\sage\timberline Office\Accounting\9.5\Formulas SM: If you are using Service Management the SM reports reside under the Reports Directory PO/IV: reports will reside in the reports or the report\customdirectory Data Various data directories reside here These backups should be performed from Sage 300 directory downward. 3. Remember that Archive Folders must also be upgraded each time an upgrade is preformed and the current production files must be upgraded. Month End, Quarter End, Year End Procedures 2

3 PR Year End: 1. Reconcile PR to GL a. PR:Tasks>GL Recap i. PR report will take a long time and everyone must be out of PR when you run the GL Recap ii. This lists all accounts and amounts that have been sent to GL by PR 2. Year end in payroll must be complete prior to processing the first payroll of the New Year. a. Time can be entered just not processed b. If time gets processed by accident be sure to check the Reprocess check box when you reprocess after upgrade. 3. The check date determines the first payroll. 4. ALWAYS pay attention to the year end notices from Sage. a. if you (the controller) are not receiving these notices be sure to add yourself to that list. b. At the top of the notice the Audience section allows you to quickly determine if the notice applies to you. c. Sometimes there are cautions on when the upgrade must be done. 5. BOTH W2s and 1099s can be completed AFTER year end close in both PR & AP 6. Med Deductions now on the W2s a. Use formula (PR:Tools>Fromulas) to create a formula that pulls from the Employee Master, Employee Deducts and Employee Fringes. b. If you cannot use those fields (you pay all or do not enter fringes in payroll you can create a formula to create a 0.00 amount to create the column in the Aatrix W2 spreadsheet then enter the med amounts manually. 7. Use the PR:Reports>Pay Period Processing> Deposit Summary to determine which totals to expect for the W3 8. Both Federal and state taxes are now submitted via Aatrix Reporting c. PR:Tasks>Federal (State) Efile reporting d. For detailed information go to PR:Help>Index, you can see Aatrix very close to the top. e. This is a free service if you choose to print & send all yourself. f. Aatrix will file electronic file w/o charge. You also can elect to have Aatrix do all of the filing for you. Month End, Quarter End, Year End Procedures 3

4 AP Year End corrections 2. There now is a setting under Security>Roles>Common Tasks>Security that must be checked if someone other than an unlimited user is going to make these corrections, for those who are not unlimited users 3. Note that AP has both a Close Year (Fiscal Year) and a Close 1099 Year (calendar year) 4. Be sure to close both at the appropriate time. JC Year End 1. When you close the last month of the Fiscal Year in Job cost, YTD total roll. 2. There is not a Close Year task in Job Cost. CM Year End 1. Close year in CM rolls interest fields only 2. Suggest using AP to enter auto payments from cash accounts. This makes tracking much easier especially now that AP Manual/Quick check now allows for EFT payment entry as well 3. In the final reconcile of the year (if not monthly), make sure all old entries that do not belong in CM are cleared. 4. Could be very old checks that have never cleared or adjustments created in error. Month End, Quarter End, Year End Procedures 4

5 a. Good time for housekeeping Equipment: 1. Good time to look at the Rev/Cost Rate tables to see if any of these rates need to be updated GL Year End 1. Sage 300 is designed to allow you to complete your year end prep in General Ledger, close the GL Year then reopen, enter and post audit adjustments, then reclose the year end. 2. The audit adjustments are stored in the Prior Year Adjustment field on the GL Account 3. Post, and then post again. 4. Initial post will clear the new.glt 5. The print journal from the second post will just give entries that are being rejected.just makes the list much easier to follow. Restoring data. 1. Recommend that before a restore is performed, the folder or file(s) that will be restored are renamed (via file tools if just restoring a file) w/ the date of replacement. 2. This preserves the original dataset or file. If there are any questions, then the dataset/file can be accessed just as any company folder, and named files can be used as a means to access the renamed file a. Construction Sample Data b. Master jcm c. New glt Month End, Quarter End, Year End Procedures 5

6 More Tips Around mid-december, decide when you need the IT department (if you have one) to run the year-end updates and tax updates and schedule the dates with them when you need each one completed. If you pay weekly, you ll have a pretty narrow margin in which to get that done! If your company is a subchapter S corporation, you may need to add some of the benefit payout back to the owners wages for FICA and the W2s. Set up the owner adjustment for in/out pay and deduct and calculate and run those in December after you have all of the insurance numbers for the year. Check all of your setups each year by mid-december for 401K (the Retirement Plan checkbox) and purchases/loans, etc., to make sure the roll-over is set correctly and the individual setups are correct with YTD or No Period, box unchecked it payment complete, etc. W-9s consider adding this to your subcontractor prequalification packet to be updated annually. By mid-december check all of your vendors to make sure the entries are current and correct. Scan and save the W9s and attach them to the individual vendor setup in the file attachment tab. Same with insurance. If you use the same file name every year, you can replace the file without having to rename or re-attach and you ll always have the most current information right there to view. Update SUI Rates when available. Aatrix W2s and 1099s consider doing a full test run (and 1099s) and make notes of any changes that were made. Run the test run W3s and balance everything back to the printouts in PR and the 941s and all of the individual state year-end reports. When everything balances, run the final and double check all of the numbers on the W3 again and then submit or print. If you have to submit 401K info for the compliance and 5500s the first week of February every year, it is really easy using the Export to Excel button in Inquiry. Pull the gross wages, hire/term/rehire dates, SSN and everything else you need from the Employee Totals inquiry and click the Export to Excel button. You ll only need to sort by dates to determine eligible and ineligible and whatever else was needed for all of the YE 401K. Month End, Quarter End, Year End Procedures 6

7 Here s a Payroll checklist reprinted from the November 2013 TUG Pulse A Payroll Checklist for a Checklist Junkie by: Lenni Witt Aronson & Company k, I admit it. I love checklists. Use them for everything, weekends even. So when I saw the Payroll Year End checklist that my client Gail Gaines from Electrico, Inc. in Baltimore, MD had created, I knew it was something I had to have. And share. It s a beauty! Not only does Gail include all the steps they need to go through to update Payroll and employee records at year end and beyond, she includes the names of all the special reports to run. Most of the reports are custom reports that they have developed over the years, and since she usually only runs them once a year, Gail includes the report path in case the report is not on the Payroll reports menu. So here s a look at a great checklist thanks to Gail for providing it! Payroll /Personnel Year End/Beginning Changes 1 Prepare 401K match notice for upcoming year and distribute in payroll. 2 Check 3rd party sick pay boxes for those with STD. From Report Design print: STD Deduct Report.rpt Go into Payroll to Misc. Info tab for each employee and check box. Be sure only CURRENT STD recipients are checked. 3 Back up Payroll information before closing year! Close Year. 4 Download Sage 300 CRE upgrade for payroll information after Close Year. Enter new Unemployment Rates for state(s). Audit vacation days left and then: Print new vacation schedule (print Rehire report for vacation sheet)(ei-20 vacation) (after 1/1)(prints TXT file then to Excel. Modify for more than 15 days vacation) (Both office and field). Fringes After Close Year 1 Run from Report Design: Fringe End of Year Check Report.rpt 2 Check fringes box for 401K, 401K PW, PS, and PS/PW. Must be hired 6/30/2012 and prior. 3 Check fringe box for those eligible for Group Life ($110,000). Must be employed one full calendar year for eligibility (all of 20 ). 4 Send report for employees eligible from Life Class 3 to Class 2 (Insurance Broker). 5 In PR Employee Misc. record mark Retirement Plan with X if eligible. Month End, Quarter End, Year End Procedures 7

8 Deducts After Close Year 10. Run from Report Design: Deduct report for 401K.rpt. 11. Check 401K limits for new amount. 12. Change new deduct 401K% for employees list from The Standard be sure to post on employee enrollment form. 13. Run from Report Design: Deduct report for FSA. 14. Pull up ODBC format and enter new deducts and limits for FSA participants from new applications. 15. Run from Report Design: Deduct Report Employee. 16. Check odd deducts (i.e., garnish, PR exchange, etc.) delete if paid in full. 17. For EPP s carried over to the new year establish the new limit for the balance due. Run EPP report from Payroll, balance with G/L. 18. For Loans carried over to the new year establish the new limit for the balance due. Run LOANS report from Payroll, balance with G/L. Apprentice and Wage Items 19. After PR WE 12/30/13, use ODBC to update Apprentice/Labor wage/level changes and Office wage changes. 20. Send salary changes to Insurance Broker for them to update for STD. Payroll/Personnel Year End/Beginning Changes 21. Use ODBC to enter new fringe rates in personnel custom field. Health Insurance/Dental Renewal in March 22. Locate source data for new Health Fringes. These figures will be used to update fringe benefits in PR Fringe setup. 23. Go to Payroll Module Reports Fringes; print fringe list. Some fringes have formulas some have dollar amounts some have %. Amounts listed are WEEKLY calculations. Change according to the new rates on the source data. Note: Along with the fringes changing the health and/or dental deduct may be changing as well. Dental 24. Run report on existing deductions. Check these deducts against January invoice for accuracy. 25. PR SETUP DEDUCTS change rates, if necessary. Health 26. Report Design: Health Insurance Fringe Checklist.rpt Deduct Report for Health Insurance.rpt Use these checklists to check fringes/deducts against the January invoice for accuracy. 27. Run ALL Employee Fringe Benefit Reports for new totals. Use ODBC to enter new fringe rates in personnel custom field. Month End, Quarter End, Year End Procedures 8

9 Year End Archiving Procedures To get you organized for year end housekeeping, here s a step by step set of instructions for the core modules to clean up your data and move things to history files. DATA FOLDER LEVEL Tools > File Tools > Backup all Data Folders # of Data Folders: Create Historical Data Folder (Optional) Folder Path Name: Data Folder Name: Create Archive Data Folder (for Jobs and Terminated Employees) Folder Path Name: Data Folder Name: In File > Printouts, Create Printouts Folder. Path Name: Determine need for Named Files File > Data Folder Settings > File Locations set Ask name for appropriate named files. Notes: Check Background Tasks to see how long it took for the Move to History Task Month End, Quarter End, Year End Procedures 9

10 ACCOUNTS PAYABLE Go to Tools > Remove Vendors in PREVIEW mode and set Conditions for Last Check Date and review activity of Vendors that may be removed Determine Payment Date Cutoff and Conditions (if applicable) of Checks that are to be moved to History Print Check Detail? Yes No Payment Date Cutoff: Conditions: Tools > Move Payments > Current to History Apply Check Date Cutoff and (Optional) Conditions Lien Waivers: determine Date Returned Cutoff and Conditions (if applicable) of Lien Waivers that are to be moved to History Date Returned Cutoff: Conditions: Check Background Tasks to see how long it took for the Move Checks to History Task Tools > Move Lien Waivers > Current to History Determine Vendors that are to be Removed Tools > Remove Vendors with Processing Option Preview only for Vendors that are to be Removed Vendor Ranges: Tools > Remove Vendors Tasks > Close Year/Close 1099 Year (Optional) Month End, Quarter End, Year End Procedures 10

11 CONTRACTS Based on Closed Jobs, Approve all Contracts (Optional) Mark all Contracts Paid in Full (Optional) Tasks > Post (to Job Cost) Tools > Move Contracts > Current to History, select Ranges and/or apply Conditions Tasks > Close Month (Optional) ACCOUNTS RECEIVABLE Tasks > Post Entries Determine Start Date and End Date of Invoices that are to be moved to History Start Date: End Date: Tools > Move Invoices > Current to History Apply Ranges and/or Conditions manually To move Miscellaneous GL and Miscellaneous JC cash receipt types, and transactions for activities that have been voided and not retained, mark the checkbox for unassociated entries. Unassociated entries will move regardless of start date, end date, ranges, or conditions entered. Tasks > Close Year (Optional) Notes: Check Background Tasks to see how long it took for Move Invoices to History Month End, Quarter End, Year End Procedures 11

12 JOB COST Reports > Lists > Jobs conditioned on Status equals Closed Post Entries; determine Date Range and/or Conditions of Job Cost Transactions that are to be moved to History Date Range: Conditions: Determine range of Job Numbers that are to be moved to History Run Closed Commitment and Job Status List Determine Commitments that belong to the Jobs that are to be moved (Optional) Job Range: Commitment Range: Date Range: Tools > Move > Transactions > Current to History Apply Ranges (such as selecting closed Jobs) and/or Conditions manually Tools > Move > Jobs Select Jobs in Ranges and/or apply Conditions Move Commitments (limited to commitments for a single Job) Tools > Move > Commitments (Optional) Apply Ranges and/or Conditions Tasks > Close Month (Optional) Tasks > Post Entries (Optional) Check Background Tasks to see how long it took for the Move to History Task Month End, Quarter End, Year End Procedures 12

13 GENERAL LEDGER Determine Cutoff Date and/or Conditions of Transactions that are to be moved to History Cutoff Date and/or Conditions: Tools > Move Transactions > Current to History Apply Account Ranges and/or Conditions manually Tasks > Close Fiscal Year (Optional) Tasks > Post Entries (Optional) Check Background Tasks to see how long it took for the Move Transactions to History Task CASH MANAGEMENT Determine Beginning and Ending Statement Dates for move to historical file Statement Start Date: Statement End Date: Tools > Move Entries > Register to History Tasks > Close Year (Optional) Notes: Check Background Tasks to see how long it took for the Move Entries to History Month End, Quarter End, Year End Procedures 13

14 PROJECT MANAGEMENT Make sure all Custom Logs are available for general use: In PJ select Setup > Custom Logs If the "Update System Information" message displays, click [Yes] In the Custom Log Setup window, click [Close] Determine range of Job Numbers that are to be moved to History (recommended limit is 500 jobs) Job Range: Tools > Move Jobs Select Jobs by clicking All, by clicking Closed, or by selecting individual jobs using the check box in the first column. Move Jobs Check Background Tasks to see how long it took for the Move to History Task Month End, Quarter End, Year End Procedures 14

15 PAYROLL Determine Conditions (e.g., Check Date lesser than or equal to MMDDYYYY) of Checks that are to be moved to History Conditions to set for Checks: Tools > Move > Checks > Current to History Use Conditions to limit Checks moved Determine Termination Date Range and/or Conditions of Employees that are to be moved to History Termination Date Range of Employees: Tools > Move > Employees Notes: Check Background Tasks to see how long it took for the Move Checks to History COMPACT FILES From the server, at TS Main, select Tools > File Doctor to compact good files. Month End, Quarter End, Year End Procedures 15

16 ONGOING GENERAL MAINTENANCE TASKS: 1. Designate one or more individuals to perform scheduled File Management tasks: Review and purge outdated print files (.PRN). Review and purge outdated test data folders. Review and purge report designs that are no longer needed. Delete any temporary files at the network level that are no longer needed. Notify users to perform disk cleanup on their workstations (Start > All Programs > Accessories > System Tools > Disk Cleanup) 2. Maintain a catalog of current reports and financial statements. 3. Keep the system documentation current: Ensure that users read Release Notes after Sage 300 CRE upgrades. Ensure that users are aware of and have access to software alerts. 4. Introduce users to the Sage Online Website: Show users how to Register and Logon; how to use Knowledgebase search. Maintain a catalog of Knowledgebase articles in a location available to users. Month End, Quarter End, Year End Procedures 16

17 ONGOING GENERAL MAINTENANCE TASKS: 5. Establish and maintain a standard in-house naming convention: Data Folder names Print File names Report Design names 6. Establish, test, and maintain a regular backup procedure: Ensure that there is a written procedure for network backup. Ensure that there is a written procedure for Sage 300 CRE backups including Custom Reports, Formulas, Templates, Inquiries, etc. Ensure that there is a written procedure for restoring from a network backup. Ensure that there is a written procedure for restoring from a Sage 300 CRE backup. 7. Develop a Disaster Recovery Plan that includes the following: Resolve the problem that caused the system to crash. Restore the most recent backup Re-enter the data prior to the crash and after the latest restored backup. Month End, Quarter End, Year End Procedures 17

18 Here s a great checklist from an article in the TUG Pulse written by Natalie Allen that will help you with your year end planning. Check Out This Checklist to Keep You On Track With Year-End Procedures by: Natalie Allen R&O Construction This Year-End Accounting Checklist, with approximate dates, can help you to remember and to record your progress on key tasks needed in order to close a business year using Sage 300 CRE. Some of the tasks or modules may not apply to your business. However, this list provides you with a good starting point. Get on your year-end planning hat and start checking off the days and chores. Year-End Accounting Checklist Staff Person Due Task Comment December Take a Deep Breath. Think. 1-Dec Make back-up copy of STO This might come in data and system files handy 1-Dec Download/install year-end If available on this date software update 1-Dec Order file folders/banker Useful for A/P Files boxes 1-Dec Order W-2 forms Calculate how many 1-Dec Order 1098 and 1099 forms Calculate how many 1-Dec Calculate personal auto use Run through Payroll for W-2s Set up formats for W-2 10-Dec forms Prepare files and labels 10-Dec Set up next year s files using ODBC 15-Dec Review W-2s for missing SS #s and Addresses information 15-Dec Review 1099s for missing Tax ID #s and information Addresses Date Complete Initials Month End, Quarter End, Year End Procedures 18

19 17-Dec Verify 1099 amount paid is correct 28-Dec Correct W-2 and 1099 errors 28-Dec Rerun report and check corrections 31-Dec Run final payroll for current year 31-Dec Enter all manual checks for current month 31-Dec Post all checks for current year 31-Dec Close 1099 year 31-Dec Make back-up copy of files This, too, might come in handy Take a Break. You Need It. January 10-Jan Reconcile Payroll for W-2s Hopefully, you re doing this quarterly 11-Jan Print W-2s 12-Jan Run Close year task for PR Year end 12-Jan Download the 2013 tax file Verify taxes are updated and the update 15-Jan Run first payroll of 2014 Carefully review it 16-Jan Print 1098s and 1099s 16-Jan 20-Jan 21-Jan Prepare all use and sales tax reports Mail all reports on use and sales tax Post all STO modules 21-Jan Print all management reports 21-Jan Make a back-up copy of files You might need this 21-Jan Reconcile all modules to themselves and to GL 30-Jan Make necessary adjustments Preferably in module of origin 30-Jan Post ALL adjustments 30-Jan Verify adjustments and print necessary reports 31-Jan Mail payroll tax forms Quarterly and Annual 31-Jan Mail W-2s to employees Drop-dead date Month End, Quarter End, Year End Procedures 19

20 31-Jan Mail 1098s and 1099s to vendors Drop-dead date Take Another Deep Breath. February 1-Feb Make a back-up copy of files You might need this 1-Feb Perform Accounts Payable Year-end close year end 1-Feb Perform Property Advance to new year Management year end 1-Feb Perform Accounts Year-end close Receivable year end 1-Feb Perform Cash management Year-end close year end 1-Feb Perform Contracts year end/close month No official year end close 1-Feb Perform Equipment Cost year-end No official year end close 1-Feb Perform Job Cost year end No official year end close 1-Feb Perform Project Management year end No official year end close 1-Feb Perform Residential Management year end/end of No official year end close month 1-Feb Perform Service Management year end No official year end close Did everything close properly? Ahhhh. 2-Feb Reconcile General Ledger Get backup ready for auditor 10-Feb Make necessary adjustments 10-Feb 10-Feb 11-Feb 11-Feb 28-Feb Post adjustments Print financial statements Make a backup of your data files Use GL, Tasks, Close Fiscal Year Mail W-2 Transmittal and Forms to SS You might need this Close Year Drop-dead date unless you do mag media Month End, Quarter End, Year End Procedures 20

21 28-Feb March March Mail 1098/1099 Transmittals and Forms to IRS Congratulations. Done! Perform file maintenance (all processes are optional) March PR: Archive checks Optional PR: Move terminated March employees Optional March AP: Move checks Optional March AP: Remove vendors Optional March PM: Clear paid items Optional March AR: Move paid invoices Optional March CM: Move entries Optional Drop-dead date unless you do mag media Speeds up processing time March CN: Move closed contracts to history Optional March JC: Move closed job transactions to history Optional March JC: Move closed jobs to archive data folder Optional March PJ: Archive closed jobs Optional March GL: Move transactions to Optional history March GL: Move current files to Optional history March Compact files Optional 31-Mar Transmit magnetic media for Drop-dead filing date W-2s to SS 31-Mar Transmit magnetic media for Drop-dead filing date 1098s to IRS 31-Mar Transmit magnetic media for 1099s to IRS Drop-dead filing date Month End, Quarter End, Year End Procedures 21