Like all accounting systems designed for use by multiple people, Sage 100 is easiest to manage when defined processes are followed — a hip-pocket approach will lead to frustration, wasted effort and inaccurate data. This is particularly true for closing a period.
Why do you even need to “close a period?” After all, Sage 100’s closing process doesn’t change or consolidate much data. Why bother?
The real reason to “close” each period properly is to use the process to check that all needed data and entries have been made, and any unfinished steps that users might have made during the period are tied off.
The result is both reliable financial data and a minimum of obsolete orders and other documents cluttering up your reports, interfering with decision making.
The process to reconcile is pretty straightforward.
- Work through one module at a time
- Reconcile the module’s postings and remove unnecessary records, such as obsolete Orders.
- Work through these in the order below, minimizing any back tracking.
If you follow this same sequence each quarter (or Period!) this will be a no-brainer for Year End. If you usually have challenges closing the year, try hard to run through all these reports and processes for closing the November period, thereby handling cumulative year issues before all the year-end changes and stress.
- Sales Order
- Verify that Open Order and Back Order reports have only legitimate orders on them. Work with your sales and shipping departments to clear out the chaf here and produce an fully actionable report for management to use.
- Review Quotes with your sales department to close out or delete those which are no longer relevant to custoemr service or sales forecasting.
- Use the other reports in the Period End reports to find any details that haven’t yet been handled in SO processing.
- Purchase Order
- Clear old, unfinished transactions. Be sure PO’s which are no longer active are Closed, so they stay out of your current reporting.
- Clean up Receipts to have only those received goods for which you still have no Vendor Invoice.
- Receipt History and Purchase History reports can also be useful in clearing up outstanding PO and Inventory issues.
- Inventory Management
- Use the Inventory Trial Balance to confirm that inventory transactions have been correctly made. This catches cases where inventory entries were made directly to the GL, Miscellaneous items were charged to inventory accuonts, bad setups for Product Line cost variances, and period end timing errors.
- Prepare for any physical inventory you will make. It’s best to address costing and tier issues with the physical.
- This is a process to itself. Please reference our separate post on this.
- The goal is to ensure that the payroll bank is reconciled to the bank statement, and payroll-related liability accounts match to external statements.
- Accounts Payable
- Use AP Trial Balance to insure that you have all your invoices and payments in the correct periods, so that the Open AP report matches the AP GL account balance. This also catches any entries made directly to GL, which is a no-no.
- Reconcile your bank(s) statements using Bank Rec. Make any adjustments directly through Bank Rec, so your final report matches to the bank statement.
- Accounts Receivable
- Use AR Trial Balance to insure that you have all your invoices and receipts in the correct periods, so that the Open AR report matches the AR GL account balance. This also catches any entries made directly to GL, which is a no-no.
- Use the AR Deposit Transaction Report to ensure that all deposits on orders are properly accounted for.
- AR Credit Card Settlement Report should be run as you get statements from your Merchant. Get this current before closing.
- Reconcile your bank(s) statements using Bank Rec. Make any adjustments directly through Bank Rec, so your final report matches to the bank statement. If your system is run correctly, confirming all customer receipts at this stage will be simple check-offs.
- General Ledger
- Check all inventory-related, suspense and clearing accounts that are not zero-balance. GL Trial Balance Report works well to find exceptions, and GL Detail Report is good to find the details of any problems.
- Confirm that GL balances match those of Open AR and AP, Bank Statements, Loan Statements, and other external statements. By following the previous steps there should not be any discrepancy between them.
Following this process should speed your reconciliation process and improve your results. Useful reporting will be made faster to those who need to use them for decisions, now and during the period.
Of course, if you have questions or problems about these, let us know. The call is included as part of your Knowledge Transfer Agreement.