Sage 50 is an accounting software that has been designed to keep the Month End process trouble-free so that it can function smoothly all the time. Sage 50 has the facility to keep two years open date in which once a user chooses to close the accounting period with the help of Year End Wizard, one can no longer make changes to that accounting period.
However in Month end routine procedure which runs on monthly basis, user with unrestricted rights can still add, delete or make changes to entries within the open year. Hence, to make sure previous months don’t get accidentally changed and clear the month to date which shows clients and suppliers records, one needs to run Month End option.
All the information has been furnished in this article which is necessary to run the Month End Option. Also, our Remoteaccounting247- Sage helpline is operational 24*7 in case of any glitch.
When and Why to Run the Month End Option?
Since most companies are not ready to close the month on the last working day of month, they wait till they have entered or posted all suppliers invoices for the relevant month. Sage 50 accounts is date sensitive. It will allow the user to continue posting to new month before user closes the current month. User can run reports including past records and print them once all the invoices has been entered. In following cases, user needs to run Month End Option:
- Month End is necessary in case user needs to run reports which uses Month to date values which are necessary in customers or suppliers records.
- If the user has set up automatic accruals or prepayments option.
- If the user has set up Fixed Asset records with depreciation rates.
It is really necessary that users need to make sure all processing of invoice for month is accurate and complete before running month end option. Else user will have to run management reports again for month if entries are made in previous month record after running month end.
How to run the Month End option?
Following procedural steps are involved in running Month End Option:
- User needs to open the “Tools menu”, then select the “Period End” option and then choose “Month End” option. This will show “Month End Window” on screen.
- Here user can select the required month end option from the “Month End” window.
- Now to run the “Month End”, user needs to click on “Ok” tab. Once the system prompts to confirm to continue, click on option “Yes”. After this, user is ready to prepare for the next month.
Month End Posting
When the user decides to run the Month End option, one needs to go through the following procedural steps:
Clear Turnover Values
Turnover values are used for reporting purpose only and as this option is not date sensitive, if the user runs Month end option, customers and suppliers records will reflect reset to Zero. This option once run, clears the month to date values in (Customer Record >Sales tab>Suppliers Record>Purchase tab)
This option is for any prepayments which a user has set up which are to be posted for the relevant month. A prepayment is a process of deferring expenditure to the accounting period in which they have accrued. Here user can set up automatic prepayment posting by using “Prepayments Option” in Nominal Ledger module.
An accrual is a process of matching expenditure or income for the accounting period in which expense or income has occurred rather than month in which it has been paid. Here the user can set up automatic accrual posting by using “Accrual Option” in the Nominal Ledger module.
Depreciation of fixed assets is an expense to the company which needs to be offset against the profit one makes in that accounting period. Automatic depreciation posting can be set up by the user by using “Posting tab” option of the Fixed Asset Records. This option of Automatic Fixed asset depreciation setting is available in Sage 50 Accounts plus, Sage 50 Accounts Professional and Sage Line 50 Accountant Plus and Financial Controller only.
In case a user needs assistance in understanding the steps involved in “Month End Option”, one can take advantage of these by getting in touch with our Remoteaccounting247 -Sage helpline experts on ✆+1-800-961-6588.