How to Change the Fiscal Year Structure or Accounting Method in Sage 50?

While setting up your company in Sage 50 Accounts, it is crucial to add the right month and year. This is crucial when the financial year starts. Calculating the 12-month financial period is needed.

Usually, the Fiscal year begins in the same month every year. In some scenarios, it needs to be changed. For instance, match the financial year of the parent company or address particular accounting standards.

This guide talks about how to change the financial year in Sage 50 Accounts successfully. Read on to learn about the steps and address the business requirements.

What are the tips to follow to modify the financial year in Sage 50?

Here are the tips to follow to change the financial year structure in Sage 50 accounts:

• Changes are not allowed after setup: After a company is prepared in Sage 50 Accounts, changing the Fiscal Year is not possible. A user cannot modify the Accounting Method without implementing certain steps.
• Limited access to previous transactions: While changing the Accounting Method, it is not possible to move the journal entries or the transaction history. Only a chart of accounts, vendors, inventory items, customers, etc., and all such maintenance records can be imported.
• Smart practices for Importing and Exporting: While exporting data, allow “Include Headings” in the “Options” tab. Next, choose the option. “First Row Contains Headings” for accurate data alignment during import.
• Backup Suggestions: After every import, prepare a unique backup to avoid data loss.
• Effect on Direct Deposit: For Direct Deposits, all concerning data should be added again manually after updates.

Note: Make sure all the rules stated above are followed. This will prevent interruption in financial recordkeeping.

How to Change the Fiscal Year Structure in Sage 50?

Here are the steps to change the fiscal year structure in Sage 50 accounts:

1. Create a New Company in Sage 50 Accounts

• To begin a new company, head to the “File” option.
• Now, click the “New Company” option.
• Press the “Next” button.
• Choose the Sage 50 product. Select the Sage 50 version used by your present company.
• Press the “Next” button.
• Add the company details.
• For now, add “New” to the company name.
• Press the “Next” button.
• Choose the option “Copy Settings from an existing Sage 50 Company”.
• Press the “Next” button.
• Note: Only settings are copied; transaction data is not included.
• Choose the source company.
• Press the “Next” button.
• Now, clear the “Accounting Periods” box when changing the fiscal year structure.
• Now, clear the box “Employee Defaults”
• Press the “Next” button.
• Follow the original company’s setup.
• Press the “Next” button.
• Choose the desired process, like Batch or Real-Time.
• Press the “Next” button.
• Create a new structure if the Accounting Periods are not checked.
• Press the “Next” button.
• Choose the starting year or month.
• Press the “Next” button.
• Press the “Finish” button to prepare the new company and complete the setup.

2. Import and Export Guide for Maintenance Records in Sage 50

Here are the steps to move maintenance records in and out of Sage 50 accounts:

• Head to the “Maintain” option.
• Now, click the “Company Information” tab to locate the actual and real company directories.
• Shut down Sage 50.
• Run the “File Explorer” and head to the original company’s file path.
• Copy the following key data files:
  • Recurex.dat
  • Rptdata.dat
  • Report.dat
  • Taxauth.dat
  • Taxtable.dat
  • Template.dat
  • Taxcode.dat
  • Qtydisc.dat
• Copy the files to the new company’s location. Confirm overwrite when prompted.
• Open Sage 50 again and open the original company file.
• Head to the “File” option. Now, click the “Import/Export” option. This will help to export the data listed below:
  • Payroll: Employee List
  • Accounts Receivable: Customer & Contact Lists
  • Jobs: Cost Code List, Phase List, Job List
  • General Ledger: Chart of Accounts
  • Accounts Payable: Vendor List
  • Inventory: Item List, Unit/Measure List*, Bill of Materials
• Close the current company and access the new one.
• Head to the “File” option and then click the “Import/Export” option, and follow this order while importing this list:
  • Chart of Accounts
  • Customer List
  • Employee List
  • Contact List
  • Vendor List.
  • Inventory Item List
  • Cost Code List (Premium/Quantum)
  • Bill of Materials
  • Unit/Measure List (Quantum only)
  • Phase List (Premium/Quantum)
  • Job List
• For final configuration and data backup, enter the beginning balances manually for:
  • Jobs
  • Inventory Items
• Enter the Merchant ID and Key under the “Services” > “Credit Card Processing” section.
• Take a backup of the company file.

Note:

• Do not change the accounting methods. Instead, add the opening balances manually for vendors, customers, and employees.
• Only maintenance records can be transferred instead of the transaction history.
• Prior to proceeding, make sure to check the data after import. It protects your setup and limits data loss during the transition.

3. Export and Import Guide for Journal Entries in Sage 50

Here are the steps to move Journal entries in and out of Sage 50 accounts:

• In Sage 50 accounts, run the Original Company.
• Head to the “File” option and click the “Import/Export” option.
• Export the journal entries from the original company. Make sure the date range covers all transactions:
  • General Ledger-General Journal
  • Accounts Payable- Purchase Journal, Purchase Order Journal, Payments Journal.
  • Accounts Receivable- Sales Journal, Sales Order Journal, Cash Receipts Journal
  • Inventory- Work Ticket Journal, Inventory Assemblies Journal, Inventory Adjustment Journal.
  • Time Expense- Time Ticket Register, Expense Ticket Register.
  • Payroll- Payroll Journal
• Note:
  • Choose the date range to “All” on the “Filter” tab.
  • Enter a date earlier than the first transaction to include all entries.
• Shut down the actual company and open a new one.
• Head to the “File” option and then click the “Import/Export”.
• Follow this sequence to import the journal:
  • General Journal
  • Purchase Order Journal
  • Purchases Journal
  • Inventory Assemblies Journal
  • Work Ticket Journal (Quantum only)
  • Inventory Adjustments Journal
  • Sales Order Journal
  • Sales Journal
  • Time Ticket Register (Premium/Quantum)
  • Expense Ticket Register (Premium/Quantum)
  • Payments (Cash Disbursements) Journal
  • Cash Receipts Journal
  • Payroll Journal
• Record all journal entries in the new company.
• Generate and compare reports from both the original and new companies.
• Perform Adjusting Entries if irregularities are present.
• In the new company, set up the memorized transactions manually.
• Change Company Names:
  • Head to the option “Maintain”.
  • Now, click the “Company Information” tab in the original and new companies.
  • Change the original company.
  • Change the new company’s name to match the original.
• Head to the “File” option and take a backup of the New Company. This will help to secure the data.

Final Words

In this guide, complete information about how to change the fiscal year structure or accounting method in Sage 50 has been shared. Still, if there is any doubt or query regarding a sudden step, feel free to reach out to us.

Contact our team of Sage 50 experts and share your issue. Our team of Sage professionals is the best at what they do.

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