Dear AccountMate Clients,

Superhero in red cape says accounting superheroes trust NexLAN's free telephone and email support!The year 2020 has certainly been one for the record books… While there have been some positives, many people are looking forward its end—but “no project is done until the paperwork’s complete,” which for you and I means closing the fiscal year.

Keep in mind that until you close the fiscal year you won’t have beginning balances on the Balance Sheet for the next fiscal year and, since there’s only a three-year posting window, if you get a whole year behind then you won’t be able to enter ANY transactions—which we see regularly from clients who aren’t actively using General Ledger in their installations. Yes, it’s true that once you’ve closed a fiscal period then the source transactions aren’t editable, but you can always post back so don’t confuse “closing” the period with “Posting Period Restrictions.” And the final reason to close is so that you can then post back into The Magic 13th Period of the prior fiscal year and not obscure the operational financial performance of your actual 12th period.

Since most company’s fiscal calendars match the calendar year, we’ve assembled the pertinent information here in our December NewsLine—but if you have questions, remember that NexLAN provides FREE telephone and e-mail support toll free at 877-2NEXLAN or via support@nexlan.com. And if you don’t have the “Emergency Contact List” of all our cell numbers for off-hours assistance, then please contact us.

By far the best advice we can give is to MAKE A BACKUP OF THE COMPANY DATABASE AT THE END OF YOUR FISCAL YEAR!!! Even if you’re not closing the fiscal year, it’s INVALUABLE to have that snapshot for validating the Balance Sheet since the “as of” reports in the system can be adversely effected by back-dated transactions. This is easy for a geek to do from inside the Microsoft SQL Server Management Console, but our NexSQLBack utility makes it simple even for non-geeks, just a couple mouse-clicks—so please contact us in the next month if you don’t already have NexSQLBack installed.

For the actual nuts and bolts of the closing process here’s links to detailed written instructions and then to videos—with all information applicable to AccountMate SQL and LAN from Version 8 up to the current releases:

Here’s the special considerations if you run Payroll in-house:

  • Regardless of when your fiscal year ends, or if you’re closing the fiscal year on/about December 31st, you’ll need to run <Housekeeping><W-2/1099 Year-End Closing> very near that date. This is usually done as part of the payroll tax update process.
  • Video: Closing the Tax Year in AccountMate discusses the steps to close the Payroll tax year. It also identifies the reports affected by the tax year closing process.

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In other news…

➤A Physical Inventory Count isn’t technically part of closing the fiscal year, but the two often go hand-in-hand—so if you also have that on your list then be sure to check out our NewsLine on Hot Dogs and Physical Inventory Counts for some valuable insight on the process.

➤Our last NewsLine discussed the IRS Section-179 means of deducting capital improvements to your business—noting this deduction has been a political football for years and wondering how much longer will it remain at its current limit of a little over one million dollars. Be sure to chat with your CPA and check out the information at https://section179.org for what may be your last chance at tax deductible upgrades to your AccountMate and other systems!

Regards,

Kevin E. Stroud
NexLAN, LLC
https://nexlan.com

February 8-22, 2021 Online Core Product Training for AccountMate/SQL

The AccountMate Core Product Training class is held quarterly and covers, per its apt title, the core modules of System Manager, General Ledger, Purchase Orders, Accounts Payable, Inventory Control, Sales Orders, Accounts Receivable and Bank Reconciliation. Hands-on exercises are provided to facilitate the learning process and give attendees a chance to have one-on-one interaction with the instructor.

Totaling 38 hours over 11 days, this is a deep dive into the modules most all clients use and is valuable for both novice and experienced users. It’s priced at $2,500/attendee or $300/session—but don’t forget your annual free and discounted seats with your Lifecycle subscription.

Registration is now open for the February class, and these have been known to fill up so please contact us SOON if you’re interested. The following session is penciled in for June 7-21, 2021 with registration for it opening in February.

Click here for Course Overview, Course Outline, and Course Schedule—then reach out to us if you don’t see your favorite module listed, or if you’d like training personalized to your business processes and modifications. We’re always standing by in the cornfields!

Tech Note: How to Record Consignment Transactions in AccountMate

In business, consignment is an arrangement whereby a potential seller (consignor) delivers inventory items to another party (consignee), who acts as an agent to sell the merchandise. Ownership of the consigned items remains with the consignor until the units are sold, at which time title passes to the buyer.

According to GAAP, Generally Accepted Accounting Principles, delivery of goods to the consignee does not constitute an actual sale until they are sold to a third party. Thus, until the items are sold, the consignor considers them as part of the company’s inventory and is required to properly report them in the financial statements.

Our Article #1160: How to Record Consignment Transactions in AccountMate discusses how the consignor properly accounts for consignment transactions in AccountMate.

Tech Note: Negative Personal Deductions in Payroll

A negative personal deduction is simply a deduction entered as a negative amount (instead of a positive amount) in the Apply Payroll/Payment function ► Earnings/Deductions tab ► Deductions grid. A common purpose for recording a negative deduction is to refund a previous deduction from the employee’s earnings.

Check out our Article #1079: Proper Treatment of Negative Personal Deductions in Payroll for the necessary procedures for recording negative personal deductions in AccountMate Payroll.

Tech Note: Tips for Purging Transactions

Our general rule is that “hard drive space is cheap” so we don’t often recommend purging historical transactions. However it may be required if you’re approaching the 10GB size limit of Microsoft SQL Server Express, or there’s a change in ownership which precludes access to history data, or you may just genuinely have a whole lot of transactions a couple decades old that you don’t need and don’t want to spend system resources on maintaining.

Please be reminded this is a permanent, irreversible deletion of history records and here’s our Article #1163: Tips for Purging Transactions to effect the process.

Technical Tips

Versions: AM11 for SQL and Express
AM10 for SQL, Express, and LAN
AM9 for SQL, Express, and LAN
AM8 for LAN

Modules: AR, IC, PO, RA, SO

Tip #1: When you assign a unit of measurement (U of M) code to an inventory item, the Stock U of M must have the smallest factor while the Sales U of M and the Purchase U of M must have either a higher factor that is equally divisible by the factor assigned to the Stock U of M or the same factor as the Stock U of M.

Tip #2: To enable the Overwrite U of M button, mark the Invoice/Sales Order or Purchase Order checkbox in the Inventory Maintenance  Information  Used In area.

Tip #3: You need to purchase and activate the Inventory Control module to set up multiple U of M records. If you do not have the Inventory Control module, then you are limited to one unit of measurement, which is “EACH”.

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Versions: AM11 for SQL and Express
AM10 for SQL and Express
AM9 for SQL and Express

Module: GL

Q: I cannot see the detailed transactions in General Ledger Listing. The report only shows one posting for the period with the description “Summary transfer from [XX]”, where XX is the module abbreviation. Why?

A: Transactions from subsidiary modules are transferred in summary in General Ledger Listing if the Transfer as Summary checkbox is marked for the module in the Chart of Accounts Maintenance ► Information tab. If you want to see the transaction details, then mark the Ignore Summary Settings checkbox.

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Versions: AM11 for SQL and Express
AM10 for SQL, Express, and LAN
AM9 for SQL, Express, and LAN
AM8 for LAN

Module: PR

Q: How do I stop withholding Federal tax for some employees?

A: Performing any of the following will not withhold Federal tax when you process payroll. Please choose the option that fits your purpose.

  • Unmark the Apply Federal Tax checkbox in Employee Maintenance  W-4 Info  Federal area: This option will stop calculation of Federal Withholding AND calculation of Federal Gross Wages, so the system will display a warning message informing you of this for you to proceed.
  • Mark the Override Withholding checkbox in Employee Maintenance  W-4 Info  Federal area and enter 0.00 in the Amount field: This option will stop calculation of Federal Withholding, but continue to record Federal Gross Wages even though no tax will be withheld for these wages.

IMPORTANT: Please consult your Tax Accountant before you stop withholding Federal Tax for employees and for direction on if Federal Wages should continue to be recorded.

Subscription Information

If you or someone else in your office would like to receive NewsLine in your inbox each month for the latest AccountMate news and tips, please email newsletter@nexlan.com.