Join Doug Hart, Solution Architect at RKL eSolutions, as we walk you through Sage 500 year-end close processes, best practices, and other information.

1. Year-End Planning for Sage 500
To Join the Audio: 1-650-479-3207
Passcode 667 409 074
Doug Hart
RKL eSolutions, LLC
Dec 16, 2015
Focused. On you.

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About Our Presenters
RachelRoselli,CustomerAccountManager
RKLeSolutions
Rachelisyourdedicatedpoint-of-contactatRKLeSolutionsforyourSageandcomplimentary
softwarelicenses.
GiaLane,CustomerAccountManager–East
RKLeSolutions
Giaisyourdedicatedpoint-of-contactatRKLeSolutionsforyourSageandcomplimentarysoftware
licenses.
DougHart,SolutionArchitect
RKLeSolutions
DoughasbeenanERPConsultantsince2000.Priortohisconsultingcareer,Dougspent14yearsas
a Controllerforaprivatelyheldmanufacturinganddistributionconcern.

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• Closing 2015
• Establish/Test your Disaster Recovery Plan
• Performing Year-End Physical Inventory
• Reviewing Vendor 1099 Payments
• Purging/Pruning Data
• Preparing for 2016
• Creating new GL Fiscal Calendars
• Creating New Inventory Calendars
• Keeping current with Sage Fixed Assets
• Updating User Security Groups
Today’s Agenda

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“Expect the best, plan for the worst, and prepare to be surprised.”
~ Denis Watley (motivational speaker)
• The Basics of a Disaster Recovery Plan (DRP)
• Replacement Hardware
• Communication
• Contact List
• Recovery Tasks Checklist
• SQL Specific Tasks
• SQL Server Recovery Model (Simple, Full, Bulk-Logged)
• Managing Backup Media (Tape, Files) On-Site or Off-Site?
• Test backup and recovery procedures
Closing 2015
Establish/Test your Disaster Recovery Plan

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“We want to turn our inventory faster than our people.”
~ James Sinegal (Costco)
• Selecting Items to Count
• Lots of Filtering Options (Item Type, Status, Zone, Bin, Bin Location, Item Class,
Purchase Product Line, Sales Product Line, Last Count Date, Count Cycle, Rankings)
• Count Documents
• Count Cards (One per item/Bin) vs. Count Sheets
• Add Blank Cards/Lines for Items/Bins not in the batch
• Entering Counts
• Show Frozen Qty?
• Counted, Uncounted, Both
Closing 2015
Performing Year-End Physical Inventory

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• Entering Counts (continued)
• Using the Grid
• Using Excel (Data Porter)
• Missing Count Cards
• If you want to use this, do NOT use the “Set Uncounted to Zero” option in
ENTER COUNTS
• Reconciliation Report
• Transactions posted for items frozen during the count process
• Discrepancy Report
• On-hand Quantity variance % > Maintain Inventory’s MAIN tab “Tolerance %”
field
Closing 2015
Performing Year-End Physical Inventory (continued)

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• NOTE: The 1099 updates to be delivered for tax year 2015 will affect
the usual 1099 applications and reports. However, due to an IRS
checkbox addition for the Foreign Account Tax Compliance Act
(FATCA), a modification to Maintain Vendors is also included in the
1099 update for 2015.
• Sage normally publishes the 1099 Update as a standalone update in
mid-December, and then includes those changes in the next Product
Update (typically in January).
• Sage normally releases 1099 updates for only currently supported
releases: Sage 500 v.2014 (aka 7.6), v.2013 (aka 7.5) and v.7.4.
Closing 2015
Reviewing Vendor 1099 Payments

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• IRS Instructions:
• https://www.irs.gov/pub/irs-prior/i1099msc--2015.pdf
• https://www.irs.gov/pub/irs-pdf/f1099int.pdf
• https://www.irs.gov/pub/irs-pdf/i1099div.pdf
• Edit 1099 Data Activities
• Edit Voucher 1099 Data
• IRS 1099 Corrections
• 1099 Beginning Balances
Closing 2015
Reviewing Vendor 1099 Payments (continued)

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• Standard Explore Views
• A good start, but you’ll probably want them “tweaked”
• Explore Vendors is missing Last Payment Date and useful 1099 “Type”
• Explore Vendor Payments does not have any 1099 data
• RKL can provide a custom Explore task with all the required 1099 information
including up to three years’ payment history
• Print/Generate 1099s from Insights > Report > 1099 Reports menu
• Print on pre-printed forms or file electronically
• Sage typically releases 1099 updates
• Standalone in Mid-December
• Within Product Update in January
Closing 2015
Reviewing Vendor 1099 Payments (continued)

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• Check for old pending batches in each module’s Post XX Batches task
(where XX is the 2-character Module ID: AP, AR, GL, IM, etc.)
• Check each Module’s Maintenance > XX Setup > Set Up XX Options
Data Retention tab (Additions, Changes, Deletions, Log Retention)
• After all year-end data has been entered, but BEFORE purging
anything, consider taking a special year-end backup of your database
• In General, avoid any Process Period End “Purge XX Data” option
• Order of Closing: IM, AP(PO), AR(SO), CM, MC, then GL
Closing 2015
Purging/Pruning

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• Consider purging within 500 (Older Than ## Months)
• Purchase Order (POs, Receivers/Returns, Requisitions)
• Sales Order (SOs, Quotes, Shipments/Returns/RMAs)
• Work Orders (Completed WO)
• SM Activity Log (Period End, Module Purge, Security Changes, Suspense
Posting, etc.)
• Delete Inactive Users (in both Maintain Users and SQL)
• Consider deleting Demo Data companies (‘SOA’, ‘COA’, etc.) if they
were installed
• Consider pruning specific SQL tables (tciDBActivityLog, tsoPickList)
Closing 2015
Purging/Pruning (continued)

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• Budget Planning
• Maintain Budgets > Copy Budget or update one account/period
• Revise Budgets > All GL Accounts or a range of accounts then Register/Post
• Review Inventory Replenishment defaults (Method, Formulae,
Purchase Requirements, etc.)
• Review PO Vendor Performance Report (by Vendor, Whse, Item, etc.)
• Review Manufacturing Costs including overhead rates, variances and
BOM Cost Roll-up Journal
Closing 2015
Other Best Practices for Consideration

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• If you have not already done so, take a backup before proceeding
• General Ledger > Maintenance > GL Setup > Set Up Fiscal Calendar
• Click the “Fiscal Year” drop-down to verify what years already exist
• Click the “Add Year” button to create the next Fiscal Year if needed
• You will receive a message indicating Beginning Balances will be created
• Confirm the “Start Date” and “End Date” fields
• Toggle the “Lock AP”, “Lock AR”, “Lock CM”, “Lock IM”, “Lock MF”, or
“Lock/Unlock All” fields as needed.
Preparing for 2016
Creating new GL Fiscal Calendars

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• If you have not already done so, take a backup before proceeding
• The recalculation step can take considerable time if you have a large
volume of inventory transactions
• Inventory Management > Maintenance > IM Setup > Set Up IM
Options
• Miscellaneous tab > “Inventory Calendar” button
• Confirm the “End Date” for each period
• Confirm the Work Days (used by Replenishment Demand & Safety Stock
Formulas)
Preparing for 2016
Creating New Inventory Calendars

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• If you have FAS integrated with 500, be sure to check your 500
version’s Compatibility Guide to confirm the most current supported
version of FAS for your version of 500
• For each 500 Company, confirm in Accounts Payable > Maintenance > AP
Setup > Set Up AP Options Integration tab. If “Fixed Asset Accounting” field is
checked and the Database and Company fields are populated, 500 is
integrated with FAS for the company.
• If FAS is NOT integrated with any 500 company, then upgrade to the
most current version available.
Preparing for 2016
Keeping Current with Sage Fixed Assets Depreciation (FAS)

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• Verify you have all relevant tasks added to your user menus using the
Menu Upgrade Utility
• “C:Program Files (x86)Sage SoftwareSage MAS 500 ClientManaged
ApplicationsAccounting.Framework.MenuUpgradeUtility.Exe”
• Review current 500 users’ roles and responsibilities
• Note that 500 permissions are inclusive. For example, if a user is assigned to
two Security Groups, and the same task is Excluded in group 1, but is Display
Only, Normal or Supervisory in group 2, the user will be granted the higher
permission level from group 2.
• Add permissions for new responsibilities
• Revoke permissions for tasks they should no longer perform
Preparing for 2016
Updating User Security Groups

17. Thank you and Happy Holidays!
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