FAQ (US) - Timing of year-end tasks: What steps do I perform when?

Summary

FAQ (US) - Timing of year-end tasks: What steps do I perform when in Sage 300 CRE?

Description

Throughout this article, "old year" refers to 2025, and "new year" refers to 2026.

Refer to the Year-End Procedures Guides (YEPG) and other articles linked below for more information.

Resolution

CAUTION: This resolution can require you to install a payroll tax update. Update taxes in each company folder that doesn’t share a tax file. After you complete this installation, tax changes take effect the next time you process payroll. This occurs regardless of the effective date on the tax table or the dates on the check. Tax updates don’t affect previously issued checks.

Overall

Q: Do I need to install the year-end version before I print W-2s, 1099s, or 1098s?
A: Yes, you must install the year-end version before you process or print those government forms or reports.

Q: In what order do I close my applications at year-end?
A: All Sage 300 Construction and Real Estate Accounting and Management Product applications close independently of one another. You can close in any order, as long as you close General Ledger last. You typically close applications in the following order:

Payroll: This ensures the first payroll for the new year processes correctly. You can generate W-2s before or after you close the year in Payroll.
Property Management and Accounts Payable: You can generate 1099s and 1098s before or after you close the year in these applications. This also ensures the vendor totals for This Year, Last Year, and Next Year are accurate.
TIP: Close the 1099 year at the end of the calendar year, regardless of the fiscal year-end date.
Equipment Cost, Contracts, and Job Cost: Job Cost and Equipment Cost send entries to General Ledger, and Contracts sends entries to Job Cost. Close these applications before you close the year in General Ledger. If the new month is the first month of a new year, then closing replaces the year-to-date totals with the next year's totals.
Accounts Receivable and Cash Management: These applications send entries to General Ledger. Close them before you close the year in General Ledger.
General Ledger: Close year in this application last to ensure it includes all entries posted from the interfacing applications.

Accounts Payable

Q: Do I need to install the year-end version before I print government forms for the year-end reporting?
A: You’ll need to upgrade to the 2025 supported year-end release before printing 1099s. Be sure to complete any 1099 corrections for 2024 before upgrading to the 2025 supported year-end release.

Q: Can I print 1099s before I close the fiscal year in General Ledger?
A: Yes. You can print 1099s regardless of whether you’ve closed the fiscal year in General Ledger. See the next Q&A for more information.

Q: Do I need to close my 1099 year before I print 1099s and checks for the new year?
A: The timing of closing your 1099 year depends on your current 1099 year (File, Company Settings, AP Settings). Consider the scenarios below:

Scenario 1: Your 1099 year is 2025.

You can print 1099s before or after you close the 1099 year.
You can print 2026 checks before or after you close the 1099 year.

Scenario 2: Your 1099 year is 2024.

Close the 1099 year before you print 1099s or print 2026 checks.
Close the 1099 year again (to make the 1099 year 2026) to keep your settings current.

Scenario 3: Your 1099 year is 2026.

You can print 1099s and 2026 checks anytime.
You don’t need to close your 1099 year again until late 2026/early 2027.

Q: Can I enter invoices and print checks for the new year before I close the old year in Accounts Payable?
A: Verify your current year and 1099 year first (File, Company Settings, AP Settings). Invoices and checks accumulate vendor and 1099 totals based on the accounting date of the invoice or check and the current year ending date. Invoices or checks with an accounting date in a future year accumulate in the Next Year box for vendor/1099 prefix totals. Invoices or checks entered with an accounting date more than one year beyond your current year end, it updates the Next Year totals. This causes incorrect Next Year totals.

For example, if your current calendar or 1099 year end is 12/31/2024, you can enter invoices and checks with accounting dates up to 12/31/2025. Entering an invoice or check with a 2026 date causes those totals to update the Next Year field incorrectly along with the 2025 entries.

Don’t enter invoices or checks with accounting dates more than 12 months beyond your current year end.

You need to close the 1099 year at the end of each calendar year regardless of your fiscal year-end date.

General Ledger

Q: Can I close the fiscal year in General Ledger before I know what all my prior year adjustments are going to be?
A: Yes. You can close the fiscal year so that you're able to print financial statements in the new year. When you make entries to a period in a prior year, open the appropriate prior period to post those entries in General Ledger. After you post entries to the prior year, close your fiscal year again and the posting period again (Tasks, Open/Close Posting Period).

Q: Do I need to install the year-end version before closing the fiscal year in General Ledger?
A: You don’t need to install the year-end version before closing the year. You can close the year before or after installing the year-end update

Payroll

Q: In what order do I close the year in Payroll, install the tax file update, and install the year-end version?
A: You can close your year, update taxes, and install the year-end version in any order. Consider the effect that issuing checks and generating W-2s will have relative to the timing of these year-end tasks. For more information, continue reading the Q&As below.

Q: What do I need to do before I process checks for the new year?
A: There are several things you must do before processing checks for the new year.

Print and post all checks for the old year
Close the year in Payroll
Download and update taxes
Change employee setup as needed for those employees who have submitted a W-4 Form changes

Q: What do I need to do before I generate W-2s?
A: There are a couple of things you must do before generating W-2s.

Print and post all checks for the old year
Install the 2025 supported year-end release

You don’t need to close the year or update taxes before generating W-2s.

Q: What are some examples of year-end task workflow?
A: Here’s an example of a common year-end Payroll workflow for Sage 300 CRE customers:

Print and post old year checks.
Close the year.
Update taxes.
Enter time, process, and print new year checks.
Install the year-end software update.
Print W-2s.

You can also view a Payroll year-end workflow diagram in the Year-End Procedures Guide.

Q: Do I need to close the month before I close the year?
A: No. If your current Payroll month is December, you can only close the year. Closing the year also closes the last month of the year.

Q: When do I update the Payroll tax file for the new year's tax changes?
A: Download and update taxes after you print and post the last payroll of the old year (2025) and close the year. Do these before you process checks for the first payroll of the new year. Although Update Taxes makes tax rates current for the new year, you still need to change local taxes and rates specific to your company. For example, state unemployment rates.

If you install the tax update before you process the final checks for the old year, the checks process with the new tax rates. See steps to correct taxes updated too soon.

Q: When do I print year-end Payroll reports?
A: Print all the necessary month, quarter, and year-to-date reports. You can print fourth quarter and W-2 forms before or after closing the year. Sage stores prior-quarter totals as far back as one quarter only, and stores prior-year totals as far back as one year only. For example, it stores fourth quarter totals until you close March (end of first quarter), and stores old year totals until you close the new year.

Q: Can I process payroll for the new year before I print W-2s?
A: Yes, as long as you close the year in Payroll and update taxes. You can then process payroll for the new year and print W-2s based on prior year totals.

See the following Q&As for more information.

Q: Can I enter time for the new year before I close the old year in Payroll?
A: Yes, you can enter time before closing the year. However, don't process or print payroll checks for the new year before closing the current year and updating taxes.

Q: Can I process, print, or post payroll for the new year before I close the old year in Payroll?
A: No, don’t process or print payroll checks for the new year before closing the year, and updating taxes.
If you issue checks for the new year before closing the old year, it will affect your check calculations and government reports. See steps to correct a check you issued for the new year before closing.

Download and update your taxes before printing checks for the new year on all versions.

Property Management

Q: Do I need to install the year-end version before I generate government forms for the year-end reporting?
A: You’ll need to upgrade to the 2025 supported year-end release before generating 1099-INTs or 1098s. Be sure to complete any 1098/1099-INT corrections for 2024 before upgrading to the 2025 supported year-end release.

Q: Can I generate 1098s/1099-INTs before I close the fiscal year in General Ledger?
A: Yes. You can generate 1098s/1099-INTs regardless of whether you’ve closed the fiscal year in General Ledger. See the General Ledger Q&A for more information.

Q: Do I need to close the year on the Property before I generate 1099-INTs and pay deposit interest for the new year?
A: The timing of closing the year on the Property depends on the current Fiscal Year Date (Setup, Properties, General tab, Controls subtab). There are deposit Interest paid totals for Last Year, This Year, and Next Year which is based on the property’s current year. Consider the scenarios below:

Scenario 1: Your Property’s year is 2025

You can generate 1099s before or after you close the year
You can pay 2026 deposit interest before or after you close the year

Scenario 2: Your Property’s year is 2024

Close the year on the property before you generate 1099s or pay 2026 deposit interest
Close the year again (to make the year 2026) to keep your settings current

Scenario 3: Your Property’s year is 2026

You can generate 1099s for the prior year and pay 2026 deposit interest anytime
You don’t need to close your year again until you’re finished with 2026

Q: Do I need to close the year on the Property before I generate 1098 Mortgage Interest statements?
A: The timing of closing the year on the Property depends on the current Fiscal Year Date (Setup, Properties, General tab, Controls subtab).