Cms 2 YE Closing+ tm Accounts Receivable

1. Cms2YE Closing+ tmAccounts Receivable Cougar Mountain SoftwareProfessional Version

2. cms2YE Closing+ tmAccounts Receivable Module - Y.E. Preparation Turn over any accounts to a collection agency that the company has not been able to collect from. Prepare a list of accounts to be written off as a “bad debt expense”. Preparing for Year End - Operational

3. cms2YE Closing+ tmAccounts Receivable Module - Y.E. Preparation The first step to prepare for a year end is to go into Accounts Receivable to post or clear all transactions for the year just completed. Print, review, and clean up the “AR aging”. Doing so is important for short remits, unapplied payments and credits, and also for customers with credit balances. Bad debts should be written off in accordance with IRS regulations. (If applicable, please note to recapture sales taxes.) Review Order Entry and Point of Sale modules for missing invoice numbers, PS hold transactions, shipped back orders/work orders, customer deposits, etc. Check that all customer returns and any claims have been processed. In order to do a cutoff test, it may be desirable to get a shipping log off of UPS Worldship,or any other source for the last few days of the completed year and for the first few days of the new year. Preparing for Year End – Cougar Mtn

4. cms2YE Closing+ tmAccounts Receivable Module - Y.E. Preparation Customer statements should be sent out to all customers at least once a year as an internal control and accuracy check. If they haven’t been done in the last 90 days, we suggest that this be done now. It is best not to post any new year customer payments until the AR clean up has been finished so that a clean AR aging can be printed. Since the AR aging is not date sensitive, you can specify which dates you want to be skipped. Please note, that payments received in the new year should be entered but not posted. Review and clean up the AR aging. Check the AR control report against the G/L control balances. The bank should be instructed to send an advance copy of the activity for the month so that any miscellaneous or unexpected activity can be quickly recorded. Preparing for Year End – Cougar Mtn Critical

5. cms2YE Closing+ tmAccounts Receivable Module - Y.E. Preparation The“Period-End”menu contains a variety of utilities to establish period end totals, clean out files, and prepare for the next period. Although, none of these utilities are necessary to maintain your software, they can be useful accounting and organization tools. Preparing for Year End – Cougar Mtn

6. cms2YE Closing+ tmAccounts Receivable Module - Y.E. Preparation Reports - Cougar Mtn Standard Reports With Creating a Prior Year Company

7. cms2YE Closing+ tmAccounts Receivable Module - Y.E. Preparation Reports - Cougar Mtn Standard Reports Without Creating a Prior Year Company

8. cms2YE Closing+ tmAccounts Receivable Module - Y.E. Preparation Reports - CMS to the MAX Enhanced Reports

9. cms2YE Closing+ tmAccounts Receivable Module - Closing Warning Backing up or Copying Files (optional but highly recommended) BACK UP YOUR DATA BEFORE PURGING OPEN ITEMS. Once you have purged this information, there is no way to retrieve it without a backup or changing to the prior year company code. You may also want to print, or make a hard drive backup of the “Aging report” (in PDF format) before purging so that you have a copy of your information.If a backup is made, it is suggested to put it in a special location, such as “\YE-AP-2008” so that it will not be overwritten. The best technique to do this, is to copy the “AP” files only from your ongoing company to your prior year company (ex. Y08) manually or by using our product (cms2SY CopyModule) that lets you copy one module from one company code to another.

10. cms2YE Closing+ tmAccounts Receivable Module - Closing The exact effect purging open items has on your customer statements depends on whether you have “Balance Forward” or “Open Item” type AR Codes. If you have both types of codes, you can run this option once, and your AR Codes will be affected in the following ways: For “Open Item” type AR Codes, purging open items will delete all open items (on or before the date you specify) in which a zero amount remains. On a monthly basis, you may want to run the“Purge Open Items” option immediately after printing customer statements. Although please note that if you run it before printing statements, “payment type” line items will not appear on the statements. Purging Open Items (optional but highly recommended)

11. cms2YE Closing+ tmAccounts Receivable Module - Closing If you select an invoice from the Historytab in the “AR Customers”window after you purge open items, you might not be able to review the detail for that item because the detail was purged. Keep in mind that when you purge open items, the details for the purged items are no longer available. To see older transactions, you can run a history report or switch to the prior year company code (ex. Y08) Although you do not have to halt operations at the end of a period to perform period end tasks, it is important that you print time sensitive reports; such as the Aged Analysis Report, before you post in a new period. Purging Open Items (optional but highly recommended) Note

12. cms2YE Closing+ tmAccounts Receivable Module - Closing Each customer is associated with a distinct set of “accumulators” that collect and store year-to-date figures. Since the amount of prior year sales is lost, most customers never reset these totals. They would rather have the total historical sales rather than have just the current year sales amounts. This has no accounting significance, it is for information purposes only. Reset the “accumulators” to zero prior to entering any activity for the new year in order for the accumulators to accurately track the information. Resetting YTD Customer Totals (optional)

13. cms2YE Closing+ tmAccounts Receivable Module - Closing To reset the customer accumulators, do the following: 1. Prepare for “Period End” processing. 2. Select Reset YTD Customer Totalsfrom the “Period End”menu. 3. Select “OK”to process, orchoose“Cancel”to exit without processing. Resetting YTD Customer Totals (optional)

14. cms2YE Closing+ tmAccounts Receivable Module - Closing Each credit card code is associated with a distinct set of accumulators that collect and store sales figures. Every time a transaction is posted, the transaction amount is added to these accumulators. These accumulators then keep a running total of all the posted transactions. This has no accounting significance, it is for information purposes only During period end processing, the current period accumulator is set to zero. Transaction totals are accumulated for the credit card codes, which can be viewed at any time during the period. It is recommended to print the sales figures for the codes at the end of the period, when all transactions for the period have been entered and posted. The figures shown are the dollar amounts from sales that were posted to each code during the period. After printing the reports, run Reset Credit Card Totalsfrom the “Period End”menu to reset the current period accumulator to zero and start gathering the sales figures for the next period. Resetting Credit Card Totals (optional & unnecessary)

15. cms2YE Closing+ tmAccounts Receivable Module - Closing When you run Period End, the computer zeros out the current period accumulator, transfers the amount that was in the current period accumulator tothe period 01accumulator, transfers the amount that was in the period 01 accumulator to the period 02accumulator, and so on for each accumulator. Resetting Credit Card Totals (optional & unnecessary))

16. cms2YE Closing+ tmAccounts Receivable Module - Closing If you have both Open Item accounts in Accounts Receivable, you can run the “Purge Open Items”option multiple times. Although usually it is customary to run it just once. By doing so, this will remove all paid items within the customer AR Code. In addition, any date ranges selected will leave all unpaid items on the statement. For “Balance Forward” type AR Codes, purging open items will combine all open items into a single balance due. On a monthly basis, you may want to run the Purge Open Itemsoption immediately after printing customer statements and prior to posting any new month activity. By doing so, your next month's statements will show the balance forward and any charges or payments since the last statement. Although it is a slow process, please note that it is possible to rebuild the purged items using the ARBUPDT.exeutility. Purging Open Items (optional but highly recommended)

17. cms2YE Closing+ tmAccounts Receivable Module - Closing To purge the open item file: 1. Select Purge Open Itemsfrom the “Period End”menu. 2. Enter the Customer Rangeto begin and end purging. To process all customers, accept the defaults of Start and End. 3. Enter the AR Code Rangeto start and end processing. To process all AR Codes, accept the defaults of “Start” and “End”. Purging Open Items (optional but highly recommended)

18. cms2YE Closing+ tmAccounts Receivable Module - Closing 4. Select the Purge Date from the drop-down calendar. The effect this step has will depend on whether the customer is an “Open Item” or “Balance Forward” customer. For “Open Item” customers, items with zero balances dated on or before the date you specify will be deleted. For “Balance Forward” customers, items with zero amount remaining that are dated on or before the date you enter will be deleted. Also, items with amounts remaining dated on or before the date you specify will be combined into one “Balance Forward” amount. 5. Select “OK”to process, or “Cancel”to exit without processing. Purging Open Items (optional but highly recommended)

19. cms2YE Closing+ tmAccounts Receivable Module - Closing Purging Open Items (optional but highly recommended) 09/30/2008

20. cms2YE Closing+ tmAccounts Receivable Module - Closing Purge History (optional but recommended) • Purge History will remove unwanted transactions that have a transaction date older than the purge date you specify. Open items (items with amounts remaining) are not affected by this process. • The decision to purge transactions is entirely up to you. You may want to purge to reduce the amount of computer hard disk space occupied by the Accounts Payable history data files, or to speed up processing time when sorting or printing vendor histories. • Please note, with the exception of history reports which are seldom run, thiswillnot simplify or speed up the processing of any new year payments or any other processes. When history reports are ran, they are usually only ran on a specific vendor to resolve a specific problem.

21. cms2YE Closing+ tmAccounts Receivable Module - Closing Purge History (optional but recommended) 1. Select “Purge History”from the Period Endmenu. 2. Select a cutoff date from the “Purge Up Through This Date”box. (All items up through and including the date you specify are purged.) 3. Select “OK”to proceed, or choose “Cancel”to exit without processing.

22. cms2YE Closing+ tmAccounts Receivable Module - Closing Purge History (optional but recommended) 01/01/2006 (or earlier)

23. cms2YE Closing+ tmAll Modules - Post Closing Post Closing • As protection before re-indexing, backup your files using the default directory. • Re-index files even though they don’t appear on most screens. Some purged items remain in the files until they are re-indexed.

24. cms2YE Closing+ tmAll Modules - Post Closing Post Closing (if not already handled) • Advise vendors of company policies regarding giving of gifts, privacy, conflict of interest, and other policies. • Send all vendors, from whom items are purchased on resale, an updated resale card. This will reduce future sales tax problems. • Check that all vendor returns and claims have been processed. • Obtain Tax ID numbers on vendors that need to be issued a 1099. • On “problem” vendors, request a detailed statement so that the balance can be verified. • As soon as the majority of the A/P activity has been entered, its suggested to move the block period up to 12. This will prevent any prior year activity to be posted accidentally. It may also be necessary to reset it occasionally.

25. cms2YE Closing+ tmAll Modules - Post Closing Post Closing • It maybe desirable to calculate finance charges on past due accounts in order to encourage customers to pay. • As protection before re-indexing, backup your files using the default directory. • Re-index files even though they don’t appear on most screens. Some purged items remain in the files until they are re-indexed. • Consider changing server, workstation & Cougar passwords.

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