1099 Updates for 2024 and Year-End Tips
for Sage X3 and 500 Users

Sage X3

There will be no changes to any of the Sage X3 1099 forms this year. Therefore, there will be no new 1099 downloads for 2024.

Sage X3 version 12.0.1099 2022 cumulative patch update includes fixes previously delivered, as well as the new 2022 1099/1096 tax reporting changes.

The 1099 2022 update is only for Sage X3 release 2019 R5 (12.0.20) and above. This update is included in 2023 R1 (12.0.33).

Open a New Year

• From the Closing process flow click on Open New Year. (Common Data>General Accounting Tables>Fiscal Years)
• Select the company you are opening from the left list and select legal.
• If the year is not listed,
  • click the Fiscal year button on the top right side
  • The screen will open displaying the new year to create. Verify that the Y/N column is set to Yes.
  • Click Ok
  • This will create the new year but the status will be ‘Not Open’.
  • Fill in the Description and Short Description for the new year.
• Click the Opening button on the right.
• Verify that the Y/N column is set to Yes.
• You may open more than one year at a time.
• Once you open a year, the periods will need to be opened as well.

Open a New Period

• From the Closing process flow click on Close/Open period. (Common Data>General Accounting Tables>Periods)
• Select the company and the fiscal year you are opening.
• Click the opening button on the top right.
• Confirm that the period(s) you are opening are checked in the Y/N column.
• You may open more than one period.

Run Year End Simulation

• This is necessary to refresh GL accounts balances For the new year.  It is only necessary when you are not ready to close the year which creates the carry forward entries.
• From the Closing process flow click on Year End Simulation. (Financials>Utilities>Closings>Year End Simulation)
• Unclick All Companies
• Select your company
• Select the Fiscal Year 2025
• Press Ok.

Restricting Accounting Dates without closing fiscal periods

• Go to Setup> General Parameters> Parameter Values
• Select and expand TC: Common Data from the left list, expand Folder, and select your folder
• Click on the action button from the group CLO and select Detail
  • Purchase Start Date: Prohibits users from entering PO Invoices and Credit Memos with Accounting Date prior to the date in the Start Date field.  It will not prevent users with an entry of Supplier Invoice Date prior to the Start Date in the parameter.
  • Accounting Start Date: Prohibits users from entering Journal Entries prior to the Start Date.
  • AP/AR Start Date: Prohibits users from entering Customer BP invoices, Supplier BP invoices, Cash Receipts, AP Payments, and  Automatic payment proposal with an accounting date prior to parameter Start Date.
  • Sales Start Date: Prohibits users from entering Sales Invoices and Credit Memos with Accounting Date prior to the date in the Start Date field.
    

ENDDAT Warning When Launching Sage X3

When launching Sage ERP X3, end users may receive: “Warning: the logical connection date is not the same as the date required for the connection—ENDDAT parameter is not authorized for connections with a logical date greater than XX/XX/XXXX.”

This warning occurs when the Folder ENDDAT is set to a date earlier than the server’s system date or the date entered in the Connection screen. It occurs frequently at year end. To prevent the warning from displaying, change the ENDDAT parameter on the folder(s) where this warning is occurring.

1. Open Parameters > General Parameters > Parameter Values.
2. Double-click on the SUP (Supervisor) module then the Folder.
3. Click on the folder name receiving the warning to display the SUP module parameters.
4. Highlight the DEF (Default Values) row.
5. Right-click and select the Detail.
6. Change the ENDDAT (End Date) parameter to a value larger than the date displayed in the warning.
   Note: To prevent receiving this message every year, use a future date, such as 12/31/2099.
7. Click the OK and then the Save button.

Standard Cost Transfer

• Create Standard Costs for the new year.
• If you create a standard cost now with a start validity date of 1/1/25, there is a batch task, FUNSMI (Standard cost adjustment), that must be executed to trigger the creation of the value change GL journal at the appropriate time (start validity date.1/1/25). The FUNSMI function must be manually set up to run either under Usage, Batch server, Request Submission or Recurring Task Management on 1/1/25. Note: there is no menu option for FUNSMI.
• Once FUNSMI has run, execute Stock Accounting interface (FUNSTKACC), under (Stock> Periodic processing>Valuation>Stock Accounting Interface) to generate the value change journal entry.
• NOTE: To avoid the steps above, you can change the STD cost on 1 January.

SAGE 500

1099 FY 2024 Updates

It looks like there are no IRS driven changes for Tax Year (TY) 2024 from a Sage 500 ERP perspective.  However, there will be TY 2024 changes for Sage 500 ERP for the base software.  These changes are driven by the need to handle Aatrix updates appropriately, and will also include a little enhancement that deals with the ability to handle 1099 Beginning Balances edits using filters for those of you with a large number of entries.

There will also be a new install for the Aatrix Software system itself as the current one has been around since 2016 and now needs changing to avoid Aatrix update issues.  We will announce this availability when it is ready.  Don’t bother to download the current install until we announce that a new one is available.  Keep in mind that the Aatrix Software install is normally done only once and then it updates itself every year.  Going forward, it will rely upon the soon-to-be-delivered install to do that.

We are working on these changes now, and will make them available during the normal mid-December time frame.  We’ll keep you updated as the time gets closer and we finish the changes.  As always, these updates will only be provided to those with active maintenance agreements that include the AP module, and the changes will be supplied as a stand-alone install as well as part of the January 2025 product updates.

We expect to support versions 2024, 2023, and 2021.  Note that while 2019 is no longer  supported, at this time we intended to support 2019 with these changes only and 1099 support will end after TY 2024.  Versions 2018 and prior are no longer supported by Sage 500 ERP.

Fiscal Calendar, Fiscal Periods and Year-End Procedure

To address the need to control postings after the period end closing is complete, Sage 500 includes options to lock down postings to sub-ledgers individually in preparation for period end closing.

https://communityhub.sage.com/us/sage500/b/sage_500_erp_blog/posts/fiscal-calendar-fiscal-periods-and-year-end-procedure

Opening a New Year

By default the inventory calendar starts on 01/01 and ends on 12/31. This can be broken down over multiple periods and even more than 12 periods as needed. The last date of the last period must end on 12/31. The number of working days entered automatically defaults to the number of days in the period and this can be modified to accommodate holidays and weekends. The number of working days entered is used when calculating the daily demand for an item based on the current inventory period.

1. Here are the steps to create a new inventory calendar year:
2. Open Inventory Management, Maintenance, IM Setup, Set up IM Options.
3. Click on the Miscellaneous tab, and then click the button Inventory Calendar…
4. To create a new year, click the Cancel icon to clear the grid of the current year, and type the new year in the Year field.
5. For a quick setup, you may choose Copy From… button to use the same Start Date and End Date of the previous year, or Monthly option to fill the period start and end dates in the new year.
6. You may modify any of the dates in the period but the Inventory Calendar must follow a calendar year where the 1st period start date must be 01/01/YYYY and the end date in the last period must be 12/31/YYYY.
7. Click the Save icon.
8. Click Yes to the message: “Inventory history will be recalculated. Do you want to proceed?”

The inventory calendar is now created successfully.