2 Quick Fixes for Blunders in Your Sage 300 Year-End Accounting

It never fails: you dive into the year-end accounting only to stumble upon some unexpected hiccups that only draw the process out. At some point in the year, someone on the team made a mistake - we’re all human! To do your year-end though, these issues need to be sorted out. Two of the issues we see regularly are GL accounts not set up properly or needing to adjust 1099 codes or amounts. If any of these are not handled properly, they can cause a lot of headaches when trying to close the year. We're going to guide you through correcting these mishaps in your Sage 300 software so you can start the new year worry-free.

Changing GL Accounts That Were Set Up Incorrectly

During the year-end accounting, some companies discover that certain GL accounts were incorrectly set up using the wrong Account Type. For instance, if Income Statement accounts were set up as Balance Sheet accounts, these accounts would not close to Retained Earnings after running Create New Year. In other words, the accounts would still have a beginning balance in the new year.
 
If you find yourself in that situation, here’s how to resolve it:

1. Ensure the option Allow Posting to Previous Years is selected.
2. Create a new GL account with the correct Account Type (ex: Income Statement).
3. Create a GL entry to transfer the balance from the old account (ex: Balance Sheet) and into the new Income Statement account.
4. Select period 12 and the fiscal year in which the entry is intended to be posted.
5. Mark the old Balance Sheet account as Inactive so no additional entries can be posted to this incorrect account.
6. Repeat steps 2 through 5 for each account that was set up incorrectly as a Balance Sheet account.

Now, it's critical that you don't run the Create New Year function again. The system will recognize the entry is posted to a prior year and will update the Retained Earnings account. That aside, following these steps will correct any mislabeled Account Types and get your year-end accounting process back on track.

How to Edit 1099 Vendor Codes or Amounts

At some point in your year-end accounting process, you might find the 1099 codes or amounts you’ve recorded for a vendor need to be edited or adjusted.

To make your adjustments, use the following steps:

To Change a 1099 Code:

1. Go to A/P Vendors and select Vendors.
2. Select the vendor with the issue.
3. Click on the Invoicing tab.
4. Choose the correct 1099 code.
5. Click on Save and then Close.

To Allow Editing of 1099 Amounts:

1. Go to A/P Set Up and select Options.
2. Select Transactions Tab.
3. Check Allow Edit of 1099/CPRS Amounts.
4. Click Save and then Close.

To Update a Vendor’s 1099 Amount:

1. Go to A/P Vendors and choose A/P 1099/CPRS Inquiry.
2. Filter to Vendor(s).
3. Filter to the incorrect 1099 Code.
4. Click on the double arrows (Go option).
5. Note the information for all entries listed.
6. Filter to the correct 1099 Code.
7. Click on the double arrows (Go option).
8. Press the Insert key to add a new line.
9. Enter the appropriate information for the detail line.
10. Repeat the previous 2 steps for each detail line.
11. Filter to the incorrect 1099 Code.
12. Click on the double arrows (Go option).
13. Press the Delete key to remove the incorrect detail lines individually.

Since these forms are used to report income your business has paid to vendors, contractors, or other non-employees, they need to be correct for close. The simplest errors could lead to compliance issues, possibly strain relationships with your vendors, and even lead to legal consequences, none of which you want to deal with on top of your year-end closing process.

Discovering blunders at year-end close can be annoying, but they're easily mended. To avoid issues in the future, check out our other year end blog that lists 3 Ways to Master Year-End Accounting Prep or use our Sage 300 Year End Checklist. Thankfully, Sage 300 has everything in place to make your year-end accounting seamless, right down to helping you find and fix any mistakes made throughout the prior year. Should you have further questions, we're here for you. Enjoy the year-end closing process as much as possible, trusting you've set yourself up for success and are ready to start the new year on the right foot.