PURPOSE:

The purpose of this technical bulletin is to assist users of Sage Pastel Evolution to run through the financial year end as smoothly as possible.

SCOPE:

Sage Pastel Evolution software keeps up to five financial years of data. You only need to purge the first year data when all years have been used up, so that you can use this additional year in the system. Through out this documentation we will go through the four crucial steps in performing the year end for Sage Pastel Evolution data bases. These four steps are as followed:

STEP 1:  Print the Relevant Reports (Ensure that all the reports for Year 1 have been printed according to your auditor or company's requirements).
STEP 2:  BACKUP the company folder
STEP 3:  Purging of other accounts/items (General Ledger accounts / Receivable and Payable accounts)
STEP 4:  Purge first year procedure

FREQUENTLY ASKED QUESTIONS:

Why is purging the year end required?

Pastel Evolution has the capacity to accommodate up to five financial years of General Ledger information. Upon completion of the 5th financial year, you will be required to purge the 1st year information contained in the system. By completing the First Year Purge Procedure, you are able to add an additional year to the system. In order to establish which financial year you are currently working in, go to the menu option: Maintenance.. Common.. Company Details  then click on the Accounting Periods option.

Purging can also be done to reduce the size of your company database and increase working speed.

When should i perform my financial year end procedures?

This can be performed at any point when working in Year 4 or Year 5, but note that Year 1, 2, 3 must have been audited and cleared by your accountants. It is therefore not necessary to wait until the last day of your Year 5 financial period - it can be done right now!

Note: The only report that should be completed on the last day of your financial year is the Inventory Valuation Report (i.e. Reports, Inventory, Valuation). This report is required by your accountant/auditor in order to calculate the value of stock at that point in time. This report cannot be backdated or run in advance as it works on the current stock value.

STEP 1: PRINTING REPORTS REQUIRED PRIOR TO STARTING THE YEAR END PURGE:

Ensure that all the following reports for Year 1 have been printed according to your auditor or company's requirements:

• Trial Balance
• Income Statement
• Balance Sheet
• Ledger Accounts (if required)
• Account Balances (if required)
• Project Profit & Loss (if required)
• Inventory Management (if required)
• Any additional reports you may require

Note: Ensure that reports balance for Year 1. In the event that this is not the case, do the following:

• A Backup
• Run a General Ledger Relink (Maintenance, General Ledger, General Ledger Relink). This will recalculate the balances in your General Ledger Balance table and make sure the data integrity is kept.
• Re-run the above reports. Should they still be out of balance, run an Audit Trail Report (i.e. Reports, General Ledger, Audit Trail) with the options "Margin of error" (set to 0.01) and "Periods" selected only. If you find that a transaction is out of balance, contact the Pastel Evolution Support Team for assistance (see contact details below).

STEP 2: BACKUP THE COMPANY FOLDER:

Refer to the technical documentation on How to Backup / Restore Sage Pastel Evolution data - Click Here!

STEP 3: PURGING OF OTHER ACCOUNTS:

The following points should be taken under consideration when attempting to purge or delete any of the relevant account types:

General Ledger Accounts

• Once a transaction has been allocated against a ledger account, it cannot be deleted.
• Should the account be an expense or income account, it can only be deleted after the first year has been completed, as the system deletes all transactions for these accounts and brings forward a balance in the new year as an accumulated profit or loss.
• Should the above have taken place, go to the Maintenance, General Ledger, Accounts.
• Highlight the specific account and click on the Delete button.
• Balance sheet accounts have a balance brought forward only if an amount exists to be brought forward. Should a zero balance exist, this account can be deleted after purging.

Receivable and Payable Accounts

• No debtor or creditor account can be deleted if there are invoices outstanding or a balance exists.
• Ensure that the account has a zero balance and that all transactions have been fully allocated (i.e. Maintenance, Receivables/Payables, Allocation Utilities).

PROCEDURE for Purging Receivables/Payables Accounts:

1. Click on Accounts Receivables/Accounts Payables... Maintenance... Purge Transactions. Specify the account(s) and date range options.
2. Go to Accounts Receivables/Accounts Payables... Maintenance... Customers/Suppliers
3. Highlight the specific account and Delete. (See screen shot below):

STEP 4: PURGE FIRST YEAR PROCEDURE:

Upon completion of all the above steps, you are ready to perform the First Year Purge.

NOTE - Once this procedure has been started, it cannot be interrupted. Should an interruption occur, please restore your backup made previously.

1.) The Purge First Year Procedure is processed from General Ledger... Maintenance... Purge First Year.
2.) Select an Accumulated Profit type account. Should none be available, make use of the "Insert" key to create an account on the fly.

Alternatively cancel this screen:

1.) Go to Maintenance... General Ledger... Accounts and click on Add to create an account with the account type as Accumulated Profit.
2.) Select a transaction code (i.e. JNL) and click on start
3.) Once this has been completed, you will be provided with a confirmation screen and your company period table will have moved to create the New Year.

AFTER THE YEAR END:

After the Year End, it is essential to re-run all the necessary reports (e.g. - Trial Balance, Age Analysis etc). Refer to The Year End Procedure in Detail (Step 1). This step is vital, as this confirms that the data has been successfully carried over to the next year.

Once you have double checked the reports and are satisfied that the year end procedure ran smoothly, you can then begin processing current year's transactions.

If you require further assistance or information, please contact our support department. If you do not have a support contract, please contact: sales@sagepastelsoftware.com.au