In the most simple of terms, the Year End Procedure is the method by which you close down the accounting period of the current year and open a new one for the following year. It does not have to be a January – December calendar year, nor does it necessarily need to be a 12 month period.
The thought of running the Year End in Sage 200 can be quite daunting, especially for anyone who has not run it before. With this time of year being the most common time for companies to process their year ends, we thought it might be useful to provide some tips before you get started.
1. Ensure all the month end procedures have been completed
At the end of each month, the business must complete a month-end procedure. Most businesses have a 12-month year but it’s possible to run it for a longer period. The month-end must be closed off for each of these months before the Year End can be completed.
2. Ensure that all required reports have been printed and confirmed
There will be some reports that are necessary to run before the Year End is begun – month end reports etc. Make sure you have all that are required before starting your Year End.
3. A Back-Up of the database must be completed
This is possibly the most important step to follow before running the Year End. Taking a backup of the database ensures that if something goes wrong, you can roll back prior to the Year End being completed and begin again from here instead of going back to the very start!
4. A new data set containing your pre year-end data must be created
This provides easy access for audit purposes. It is optional but very much advisable.
5. Ensure Nominal codes have the correct report type attached
6. Prior to Closing Period 12 of the Nominal Ledger, you must ensure that all Current Waiting Postings are updated
Open: Nominal Ledger > Period End Routines > Update Waiting Postings.
- Check the displayed periods.
- Click OK to confirm that you want to update the waiting postings.
- View the reports produced and check the results.
Reports show valid transactions that have been added to the accounts and invalid transactions that have not have been added. Depending on your default output mode, the reports will be printed, spooled or previewed.
7. Ensure Accumulated Profit / Retained Earnings account is present in the Nominal Defaults.
How to run a year end in Sage 200?
For our free Sage 200 year end guide, click on the image below: