Sage 50 doesn’t offer the ability to split a fiscal year into two. But, there’s a workaround. Work around (a manual JE to close the year that didn't close automatically) Scenario (to explain with real dates): - The fiscal year was Apr 1 to Mar 31
- Data has already moved into the new calendar year
- Transactions have been made in Jan and Feb
- Now, in Feb, required to change fiscal year-end date back to Dec 31
- There needs to be a fiscal year close on Dec 31 - Jan 1
- Normally, at the closing of the year-end (YE), a journal entry (JE) is entered automatically. This isn't a posted reviewable JE. This JE clears the revenue and expense accounts and put the difference into retained earnings. This process is automatic. Now, we have to do this manually
- Move the fiscal end date forward to the next Dec 31 instead of back to the desired Dec 31
- refer to Related Resources for the required steps
Fix: - Print an income statement (IS) or a Trial Balance (TB) for Dec 31.
- Post a manual Journal entry on Jan 1 to clear the revenues and expense accounts to retained earnings.
- Optional (but recommended) steps:
- if there were any transactions posted on Jan 1, modify them and make the date Jan 2 instead. This way, an income statement for the month of January can be from 2-31 not to include the huge YE manual close on January 1 that would throw off the January income statement. As well, the IS for the year would have not to include this day of January 1
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