--- title: Tips & Resources for a Successful Year End Close in Sage 300 description: This complete guide will provide tips and resources for a successful year end close in Sage 300. image: https://www.equationtech.us/hubfs/AccountingChecklist1-1.jpg --- [866.436.3530](tel:+8664363530) | [** Customer Portal Login](https://na.myconnectwise.net/support/index.htm?Company=equationtech) [Speak With an Expert](https://www.equationtech.us/speak-with-an-expert) [![Equation Technologies - Sage Business Partner | San Diego](https://www.equationtech.us/hs-fs/hubfs/Redesign_Images/logo.png?width=230&name=logo.png "Equation Technologies - Sage Business Partner | San Diego")](https://www.equationtech.us/) - [Sage Services](https://www.equationtech.us/sage-services) - Products We Support - [Sage 300](https://www.equationtech.us/sage-services/sage-300-cloud) - [Sage Intacct](https://www.equationtech.us/sage-services/sage-intacct/) - [Sage CRM](https://www.equationtech.us/sage-services/sage-crm) - [Sage Payroll](https://www.equationtech.us/sage-services/sage-payroll) - [Sage HCM](https://www.equationtech.us/sage-services/sage-hcm-software) - [Sage FAS](https://www.equationtech.us/sage-services/fixed-assets) - [Sage Intelligence](https://www.equationtech.us/sage-services/sage-intelligence) - [Sage Enterprise Intelligence](https://www.equationtech.us/sage-services/sage-enterprise) - Services We Offer - [Software Selection](https://www.equationtech.us/software-solution-selection) - [Implementation](https://www.equationtech.us/sage-services/erp-implementation) - [Customization](https://www.equationtech.us/sage-services/customization) - [Support](https://www.equationtech.us/sage-services/support) - [Training](https://www.equationtech.us/sage-services/sage-training) - [Sage Cloud](https://www.equationtech.us/sage-services/hosting) - [Upgrades](https://www.equationtech.us/sage-services/upgrades) - [Extend Sage](https://www.equationtech.us/sage-integrations) - [Magento eCommerce](https://www.equationtech.us/sage-integrations#magento) - [ADP](https://www.equationtech.us/en/sage-300-sage-intacct-payroll-powered-by-adp) - [Aloha POS](https://www.equationtech.us/sage-integrations#aloha) - [Salesforce](https://www.equationtech.us/sage-integrations#salesforce) - [TimeClockPlus](https://www.equationtech.us/timeclockplus) - [Other Solutions](https://www.equationtech.us/other-solutions) - Industries - [Distribution](https://www.equationtech.us/distribution-management-software-solution) - [Education Nonprofit](https://www.equationtech.us/education-nonprofit-accounting-software) - [Financial Services](https://www.equationtech.us/financial-services-software) - [Franchise](https://www.equationtech.us/franchise-management-software) - [Healthcare](https://www.equationtech.us/healthcare-finance-software) - [Hospitality](https://www.equationtech.us/hotel-restaurant-accounting-software-solutions) - [Metal Processors & Distributors](https://www.equationtech.us/erp-for-metal-industry-businesses) - [Nonprofit](https://www.equationtech.us/nonprofit-accounting-software) - [Professional Services](https://www.equationtech.us/professional-services-software) - [SaaS & Technology](https://www.equationtech.us/erp-software-for-technology) - [Resources](https://www.equationtech.us/sage-software-resource-library) - [Technology Blog](https://www.equationtech.us/technology-blog) - [Training](https://www.equationtech.us/sage-services/sage-training) - [Online Videos](https://www.equationtech.us/sage-300-erp-accpac-tutorial) - [Case Studies](https://www.equationtech.us/case-studies) - [About](https://www.equationtech.us/about-us) - [Meet The Team](https://www.equationtech.us/management-team) - [Partners](https://www.equationtech.us/partners) - [Careers](https://www.equationtech.us/careers) - [Contact](https://www.equationtech.us/contact) This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. # Tips & Resources for a Successful Year End Close in Sage 300 ![technology blog](https://www.equationtech.us/hubfs/AccountingChecklist1-1.jpg) **twitter **linkedin **facebook ## **Sage 300 Year End Tips & Resources** **1. Back Up Your Data** - before you begin any year end process, be sure to execute a complete back up of your database.  You should also **test the back up** to ensure it was successful and the data is readable. The only way to “reverse” year-end processing is to restore your data from a backup. So, do it now! **2. Check Your Version Number** - closing procedures can vary depending on the version of Sage 300 (or “Accpac”) you’re currently running. Check your version number and service pack before starting year end processing. **3. ****Create a New Fiscal Calendar** - Sage 300 allows you to begin entering transactions for the new year without closing out the current year. Simply create a new fiscal calendar in **Common Services** **> Fiscal Calendar** and then click the **New** icon.  If the period date ranges are correct, then **Save** the year.  Do this before entering transactions for 2021. **4. ****General Ledger Closing** - While it’s a good idea to close modules in a timely fashion, your General Ledger can remain open as long as you need while awaiting final processing (or audit adjustments) in other modules. **5. Check Data Retention Settings** - Sage 300 will retain historical data based on your software version and the settings you’ve configured in each module. So it’s a good idea to review all module and system settings to avoid the unintended loss/purge of important data during year end close. In particular, check GL Options to see how many years of history your system is set up to retain. **6. ****Remember, We’re Here to Help** - As you begin year end closing procedures and prepare to start fresh in 2021, be sure to contact us if you need assistance. As your software and technology partner, we’re here to help!   ## **HOW TO CREATE A DATABASE BACKUP IN SAGE 300** One of the most important things you can do before starting the year end closing process is to backup your data.   **Here’s how to do it in Sage 300:** 1. Click the **Start** button, highlight **Programs**, then **Sage**, and click **Database Dump**. 2. Type the password for the Admin user in Sage 300, then click the **OK** button. 3. Click to highlight the database that you want to Dump. Click the **Set Directory** button to enter the location where you want to save the files. 4. Click **OK**. You'll return to the Dump Sage 300 Data screen. 5. Click the **Dump** button to proceed. A confirmation message will appear. Click **OK** to continue. 6. A Dataset Description screen will display in which an optional description of the database may be entered. Enter a description, then click **Done**. Watch this [Sage 300 backup video demonstration](https://youtu.be/0-aqbeI6p6s) on YouTube to see the full process step-by-step.   ## **Sage 300 Year End Center** Sage has created a [Year End Center](http://sagecity.na.sage.com/support_communities/sage300_erp/sage300-yearend/) that provides valuable resources that can help guide you through a smooth year end closing process in Sage 300 including: - Year End Tips, Articles, and Checklists - Video Tutorials - Online Q&A and Discussion Forum - Live Chat With Tech Support - Tax Forms, Payroll, and Reporting Guidance - Product announcements and year-end tax updates  Take advantage of this free and valuable resource!** ** ## **Review Year End Checklists** Checklists are great for helping you keep things on track and to ensure processes are executed in the right sequence. Here’s how to access year end processing checklists that are built right into Sage 300:  ### **Newer Versions of Sage 300:** 1. Logon to your Sage 300 system 2. From the Task Ribbon, click **Help** then **Product Documents** 3. Browse the version of your product, then select **Checklists** 4. Click the link called **Year-End Procedures** ### **Older Versions of Sage 300:** 1. Logon to your Sage 300 system 2. From the menu bar, click **Help** and then **Documentation** 3. Browse the **ENG folder** 4. Find the PDF called **Sage300ERP_Checklist_YearEnd.pdf** ## **SAGE 300 PAYROLL FAQS AND TUTORIAL VIDEOS** For companies running the payroll module, here are answers to frequently-asked questions along with some helpful instructional videos to help prepare for year end.  ### **When do I close the payroll year?** You never close the year. Continue processing payrolls as you do all year long, entering period-end dates in the new year as you cross the calendar year boundary. After you have completed all of the previous year’s year-end processing and made backup copies of the data, you can run ***Delete Inactive Records*** to remove terminated employees and other obsolete information from your data.  ### **Can I produce W-2s (U.S.) or T4s (Canada) after processing payrolls for Jan 1?** **Yes**. The program allows you to start processing payrolls for Jan 1 and later produce W-2s/T4s for the previous year without any additional procedures. When you produce W-2s/T4s, select previous year as the Payment Year. ### **Is there a limit to the number of W-2s or T4s that can be printed?** **No**. You can print the W-2 forms or T-4 slips as many times as you need. ### **Helpful Sage 300 Payroll Links and Videos:** [Sage 300 Payroll Updates](https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=45424&sliceId=1&cmd=&ViewedDocsListHelper=com.kanisa.apps.common.BaseViewedDocsListHelperImpl) (Downloads Page) [How to Download and Install Payroll Tax Updates](https://support.na.sage.com/selfservice/viewdocument.do?noCount=true&externalId=72564&sliceId=1&docLink=true&languageId=&isDocLink=true¤tmsID=MS_Customer&cmd=&openedFromDocument=true&ViewedDocsListHelper=com.kanisa.apps.common.BaseViewedDocsListHelpe) [How to Print W-2 Forms](https://www.youtube.com/watch?v=_2U1V6as_Xg) (U.S.) [How to Print T4 Forms](https://www.youtube.com/watch?v=Trv3EZWdOj4) (Canada) ## **RECOMMENDED REPORTS TO PRINT FOR YEAR END** After year-end closing is completed, it’s a good idea to print and keep the following recommended reports that provide an overview of year end closing transactions as well as your company’s financial status:  ### **Batch Status** Shows all of the activity that has taken place during year end closing, including the number of transactions and the total debits and credits posted. ### **Posting Journals** An audit trail of all the transactions posted for year end. ### **Balance Sheet** This critical report shows the company’s assets, liabilities, and shareholder’s equity, and opening balances carried over from the previous year. ### **Trial Balance** Shows all the opening balances for the new year. Note that all the income statement accounts should display as zero. ### **Transactions Listing** This report reveals all entries posted to the G/L, including   all net changes, balances, and transaction details for all accounts within the range of the fiscal year. **Video:** [Instructions for Printing These Year End Reports](https://www.youtube.com/watch?v=1Sh4AsNpHpM)  ## **HOW TO START A NEW YEAR IN SAGE 300** Here’s an overview of the process for starting a new year in Sage 300 which includes several steps as follows: 1. ** Users log out** Verify that all users are logged out of the system. 1. ** Create a backup of your data** Refer to the instructions on page 2 of this newsletter. 1. ** Create a new fiscal year** If desired, you can also [lock fiscal periods](http://help.sage300.com/en-us/2017/web/Content/CommonServices/FiscalCalendar/AboutLockingUnlockingFiscalPeriods.htm).  Creating a new year in Common Services allows you to start posting transactions to the new year. 1. ** Check data integrity** Use the [Data Integrity tool](http://help.sage300.com/en-us/2017/web/Content/AdministrativeServices/DataIntegrity/CheckingDataIntegrity.htm) to check for errors in your data. 1. ** Complete year end in A/P ****(Optional)** If you want to reset the batch number for Accounts Payable, you’ll need to perform a year end in A/P after posting all transactions for the current year, and before posting transactions for the new year. 1. ** Complete year end in A/R ****(Optional)** Similar to A/P, you’ll need to perform a year end in A/R if you want to reset the Accounts Receivable batch number. **Video****:** [Instructions for Starting a New Year](https://youtu.be/MmOdmagQIAQ) ## **HOW TO CHANGE GL ACCOUNTS THAT WERE SET UP INCORRECTLY ** During year end processing, 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. 1. Create a new GL account with the correct Account Type (Income Statement). 1. Create a GL entry to transfer the balance from the old account (Balance Sheet) and into the new Income Statement account. 1. Select period 12 and the fiscal year in which the entry is intended to be posted. 1. Mark the old Balance Sheet account as **Inactive **so no additional entries can be posted to this incorrect account. 1. Repeat steps 2 through 5 for each account that was set up incorrectly as a Balance Sheet account. **NOTE:** Do not 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. Be sure to get in touch if you need help with this or any other issue with your Sage 300 software.  ## **HOW TO EDIT 1099 VENDOR CODES OR AMOUNTS** At some point during year end processing, you may discover that the 1099 codes or amounts you’ve recorded for a vendor need to be edited or adjusted. ### **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 of **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 ## **Sage 300 and the New 1099 Forms** The IRS has introduced the new Form 1099-NEC for reporting independent contractor income, non-employee compensation.  The Form 1099-MISC is still in use, but only to report miscellaneous income and excluding non-employee compensation.  Sage has updated their programs to work with the new 1099-NEC forms.  Here’s what you need to know: 1. Update your system to the latest product update. - Version 2021 – Product update 1 - Version 2020 – Product update 4 - Version 2019 – Product update 7 - Version 2018 or older - contact Equation ([support@equationtech.us](mailto:support@equationtech.us)) for a custom 1099-NEC form 2. Once your product update has been installed, go to AP Setup, 1099 / CPRS Codes: ![Sage 300 1099 Codes](https://www.equationtech.us/hs-fs/hubfs/1099_1.png?width=949&name=1099_1.png) Enter your current 1099 code, and fill in the two new fields Tax Reporting Type and Amount Type.  Make sure to do this step for all of your 1099 codes. 3. When you are ready to print your 1099s, go to AP Vendor Reports, Print 1099/1096 Forms. ![Sage 300 1099 forms](https://www.equationtech.us/hs-fs/hubfs/1099_2.png?width=704&name=1099_2.png) Select the Form 1099 and then enter the tax year 2020.  When you enter the Form Type 1099-NEC, Sage automatically populates the Use Form field to be AP 1099NEC-2020.RPT.  This is the new specification file that works with the new IRS forms.  When you change the Form Type to 1099-MISC the Use Form field updates to the new AP 1099MISC-2020.RPT form.  Also note that the form types are sensitive to the tax year – if you enter 2019 for the tax year, you cannot select a Form Type 1099-NEC.  When you try to print, Sage will pop up with an error that says “Form 1099-NEC is not valid for the year 2019.” 4. Sage has the ability to e-file 1099s. Go to AP Periodic Processing / 1099 Electronic Filing.  Sage will create the file and then you can upload it to the IRS site with your FIRE account. Click here for information on FIRE accounts:  [https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire](https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire) [Contact us](https://www.equationtech.us/contact) if you have questions or would like assistance with your year end processing. ### Related Articles ##### [Sage 300 & Windows 10 End of Life: What You Need to Know](https://www.equationtech.us/sage-accpac-blog/sage-300-windows-10-end-of-life-what-you-need-to-know) There’s been a lot of conversation lately around Windows 10 end of life and what that means for... ##### [From Start-Up to Quarter Billion – How Sage 300 Scaled Success](https://www.equationtech.us/sage-accpac-blog/from-start-up-to-quarter-billion-how-sage-300-scaled-success) We also have a [video version](https://drive.google.com/file/d/1ssdM9iHt6Wz86A-VDvAER03NdXkAodg9/view?usp=sharing) of this article, where you can hear directly from one of our ERP... ##### [How to Simplify Payroll and Job Costing with Sage 300](https://www.equationtech.us/sage-accpac-blog/how-to-simplify-payroll-and-job-costing-with-sage-300) Getting payroll to play nice with your job costing system is like fitting a square peg into a round... ## Need Help Now? 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