Sage Line 50 tutorial is designed for book-keeping software, in this blog we will teach you how to use this software. In sage line 50 blog you will learn about how to install and operate Sage Line 50 and how to install on network.

Running a year end routine

Running a year end involves many processes including producing and reconciling your reports and posting adjustments to your accounts. After running a year end routine these effect take place.

Profit and loss balances are cleared

When the Year End option is run, Sage Accounts checks all of the Chart of Accounts to establish which nominal codes are profit and loss codes. The balances, up to the end of the current financial year, on these profit and loss nominal codes are transferred to the Profit and Loss Account nominal code. This is 3200 by default and is in the Capital and Reserves section of the Chart of Accounts.

Any balances remaining on profit and loss nominal codes relate to transactions posted for the new financial year. The balance on the Profit and Loss Account nominal code is adjusted by the profit or loss from the financial year you have just closed.

Balance sheet balances are brought forward to the new financial year

The balance sheet nominal code balances are carried forward into the new financial year. These balances are transferred to the brought forward boxes on the Nominal Records, and are included in the Year To Date values on the Balance Sheet report when calculated for a date in the new financial year.

Audit trail updated

The journals posted to clear the balances from the profit and loss nominal codes are added to the audit trail. The Year End option creates a report that lists these journals and can be printed or output to file to be printed later.

Nominal Records updated

On the Nominal Record Details tab, the value of any future dated transactions is transferred from the future bucket to the relevant month on the Actual column. The Actual monthly balances for the financial year that you are closing are transferred to the Prior Year columns on the Nominal Record. This enables you to print comparison reports in the new financial year. If you select, in the Year End window, to Transfer / Copy Actuals to Budgets, the Actual monthly balances are also transferred as the Budget values for your profit and loss nominal codes for the new financial year. If specified, a percentage increase is applied. This is an optional feature of the year end.

Product Records

Sage 50 Accounts, Sage Instant Accounts Plus v8.2 and above - The Actual Sales Value and Actual Quantity Sold values in each Product Record are transferred to the Prior Year columns. Any future dated transactions are transferred to the relevant monthly field in each Product Record.

Customer and Supplier Records

The values in the YTD (Year To Date) turnover box in all Customer and Supplier Records are transferred to the Prior YTD field. Any future dated transactions are transferred to the relevant monthly field in each Customer / Supplier Record.

Financial Year Start Date

The financial year start date is incremented by one year. To check the financial year start date, open the Settings menu then choose Financial Year.

To prepare to run the Year End option- Mandatory Procedures

Run Check Data

The Year End option calculates balances based on your transactions and the information held in your software records. It is therefore essential that your data is error free. Before running the Year End option, you should use the Check Data option to check the validity of your data files and, if necessary, correct any data corruption.

Check your Chart of Accounts

During the Year End procedure Sage Accounts uses all layouts in the Chart of Accounts to establish which are the profit and loss nominal codes. The balances from the profit and loss nominal codes are then transferred to the Profit and Loss nominal code which is by default 3200.

Take two backups

Before running the Year End option, you should take two backups of your data and keep these in a safe place. Once the year end is run, the only way to go back to a pre year end position is to restore from one of these backups. You may need to do this to run reports, check accounts, or even run the Year End option again. We advise taking two backups as a precaution against loss or damage to your pre year end backup. Make sure you must test one of the backup if it has been backuped correctly.

To prepare to run the Year End option - Optional Procedures
Run the Month End
If you usually run the Month End option, before running the Year End option, you should run the month 12 month end.

Change Program Date

The Year End option posts journals to clear the balances on your profit and loss nominal codes. These journals must be dated on the last day of your financial year. Sage Accounts stores this date and automatically enters it in the Year End window. You can run either the Year End option with your program date set to the current date, or change the program date to be the last day of the financial year.
If you run the Year End option with the program date set to a date beyond the year end, the following message appears:
'The current program date is outside your financial year. If you continue it may cause discrepancies in your accounts. Do you want to continue?'
To run the Year End option, click Yes, or to exit without running the Year End option, click No.
This message is a warning against running certain year end routines to the wrong date, for example running the clear audit trail into the new year or running the month end for month 12 with the wrong date.
If you run the Year End option with the program date set to be the last day of the financial year the following message appears:
'You are about to process a Year End whilst in your current financial year.Are you sure you wish to continue?'
To run the Year End option, click Yes, or to exit without running the Year End option, click No.This message is aimed at preventing you from running your Year End before you are ready.

Print Reports

If required, print the following reports:
Trial Balance
Profit and Loss
Balance Sheet
Aged analysis reports for debtors and creditors
Statements for customers and banks
Bank Report, unreconciled
Day Books for customers, suppliers, banks and nominal
Activity reports on all ledgers
Audit trail
Budget Analysis report
Prior Year Analysis report
Sage 50 Accounts Plus/Sage Line 50 Accountant Plus and Sage 50 Accounts Professional/Financial Controller - Stock Valuation
Sage 50 Accounts Plus/Sage Line 50 Accountant Plus and Sage 50 Accounts Professional/Financial Controller - Product Profit Reports

Opening and closing stock journals

To ensure that the correct stock value is recorded on your Profit and Loss report, you must post opening and closing stock journals.

To run the Year End option

Open the Tools menu, choose Period End then choose Year End.
The Year End window appears.
Complete the Year End window as follows:
Year End Date - Displays the last day in the current financial year.
Current Date - Displays the current program date.
Transfer Actuals to Budgets / Copy Current Actuals - To automatically set budgets based on income and expenditure during the year for profit and loss nominal codes, select this option. These values are transferred as monthly figures.
Percentage Increase - If you want to set a target for the following year, enter the percentage increase you want to apply to your budgets here.
Year End Journals - Automatically displays the year end date. This is the date Sage Accounts uses to post the journals which clear your profit and loss nominal codes.
Output to - Displays the output options for the Year End report. This report details the journals automatically posted at the year end. You can choose one of the following:
Print - Select this option to output the report direct to your printer.File - Select this option to file the report to print later.
Sage Line 50 v9.xx and above, including Sage 50 Accounts - Archive Company Data before Year End - This option allows you to take a copy of your data at the pre year end point. You can then refer back to the archived data, either to run reports or analyse your previous year's data.
To run the Year End option, click OK.
When the year end postings have been made, the software desktop appears.
The Year End option is now complete and you are ready to prepare for your new financial year.

5 comments:

Anonymous said...

I have tried to run the year end routine, but it doesnt run as usual.It just hangs there and no movement at all. what should I do?

snutmeg said...

year end completed. new data wont enter. financial year says 2018. how do i fix prolem. HELP NEEDED

Prasad said...

My machine got stuck when the process of year end, then i restarted and open Sage again, run year end again, but brought forward Trial balance not tally? what should I do for this error? I have taken two backups before year end. please help

lauramatthews171 said...

snutmeg- go to Settings> Financial Year > Change and alter the date their. Once you have done that you should be able to change your program date. Settings > Change Program Date. Change date to todays date and that should solve the problem.

Prasad - Use your backups to reset prior to running year end and then start again.

Yehuda Feiner said...

ledger year end is including the following year entries how do i stop this?

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