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The CBA Blog brings you tips, tricks, updates and general information for users of Peachtree & Sage 50 Accounting Software.

How to Share Data in Sage 50cloud

4/30/2020

Below are the steps to set up and share your Sage 50cloud accounting data:

Once your company is shared, only one person can access the data at a time until you stop sharing (unless you also purchase Multi-User Sage Drive & have a Multi-User License).

Open the company you wish to share
Select File, Sage Drive, and then select Share Company
Log into your Sage ID, and then select Next
If prompted select Allow to grant Sage ID permission to access Sage Drive
Select Create Backup (this makes a local backup of your company data)
Once the backup has been created, select Share Company
Once the upload has completed select Next, and then select Finish

Please note the following:

Currently, you can share an unlimited number of companies using Sage Drive. There is not a company database size limit.
You only need to upload and share the company one time. If you upload and share the company more than once you will have multiple copies of the same company on the Sage Drive.
Only the Sage ID that shared a company on the Sage Drive can stop sharing
Sage Drive requires high speed Internet access (For best performance download speeds of at least 20mbps and upload speeds of at least 10mbps)
Maximum of 5GB file size for Sage Drive companies

If you are currently on the Sage 50cloud product and need to purchase the Sage Drive Multi-User capabilities give us a call at 1.800.339.8224 or a quote. With more people needing to work at home the Sage 50cloud product has been a lifesaving feature!

By Tim Hambsch

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Setting Up The Paycheck Protection Program (PPP) in Sage 50

4/28/2020

The Paycheck Protection Program or PPP is a loan program embedded in the CARES Act and was set up to encourage businesses to maintain wages and salaries and pay rent and utilities during the COVID-19 crisis.

The loan can be completely forgivable if you can prove you spent the funds on the right things.

What can you use these loans for?

You should use the proceeds from these loans on:

Payroll costs, including benefits
Interest on mortgage obligations, incurred before February 15, 2020
Rent, under lease agreements in force before February 15, 2020
Utilities, for which service began before February 15, 2020

What counts as Payroll Costs?

Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee)
Employee benefits including costs for vacation, parental, family, medical, or sick leave; severance pay; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit
State and local taxes assessed on compensation
For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee

All expenses that fall under those categories are eligible for forgiveness. The following conditions will also apply:

8 weeks of coverage

Eligible expenses are those that are incurred over eight weeks, starting from the day the first payment was made by your lender.

This is not necessarily the date on which you signed your loan agreement.

Depending on your payroll schedule, you may want to adjust the timing of your payroll date to accommodate as many payroll cycles as possible.

For example, if your PPP loan gets deposited in your bank account on April 15, you could only use the funds on expenses incurred during the eight weeks following April 15.

The 75/25 rule

At least 75% of your loan must be used for payroll costs. Payments to independent contractors cannot be included in the payroll costs.

Staffing requirements

You must maintain the number of employees on your payroll. Here is the calculation you can use to determine if you�ve met this requirement:

First, determine the average number of full-time equivalent employees you had for:

The 8-week period following your initial loan disbursement, (A)
2/15/2019 to 6/30/2019, (B1)
and 1/1/2020 to 2/29/2020. (B2)

Take A and divide that by B1. Do the same with B2. Take the largest number you obtain. If you are a seasonal employer, you must divide by B1.

If you get a number equal to or larger than 1, you successfully maintained your headcount and meet this requirement.
If you get a number smaller than 1, you did not maintain your headcount and your forgivable expenses will be reduced proportionately.

Pay requirements

You must maintain at least 75% of total salary.

This requirement will be individually assessed for every employee that did not receive more than $100,000 in annualized pay in 2019.

If the employee�s pay over the 8 weeks is less than 75% of the pay they received during the most recent quarter in which they were employed, the eligible amount for forgiveness will be reduced by the difference between their current pay and 75% of the original pay.

Rehiring grace period

You can rehire any staff that were laid off or put on furlough and reinstate any pay that was decreased by more than 25% to meet the requirements for forgiveness. You have until June 30th to do so.

The content below will show you how to set the PPP up in Sage 50. If you need assistance please contact us at 1.800.339.8224

Let�s assume that you applied for and received a PPP loan for $100,000 on 04/10/20. The example that follows is one way to record the loan and expenditures.

Setting up the loan account

For optimal record keeping, it is recommended to create a separate cash account, both in Sage 50 and at the bank, to deposit the loan proceeds and track the related COVID-19 expenditures. A separate account is more audit-friendly, avoids comingling of funds and creates a clear audit trail. This will aid in maximum loan forgiveness.

Create new accounts for tracking the loan

Open a new bank account and deposit the loan funds. Then, set up a new cash account in Sage 50:

Create a new liability account for the loan. Until you know how much of the loan will be forgiven, it must be tracked as a liability.

Set up the loan vendor

Set up the PPP lending institution as a new vendor and enter the loan liability account as the default expense account.

Record receipt of the loan proceeds

When you receive the money, deposit it into your new bank account and record the transaction in Sage 50 using the Receive Money window.

Accounting for other loan costs

Although interest and principal payments are deferred for 6 months, interest should be accrued at the stated rate of 1% in case some or all the loan is not forgiven.

Obtain a statement from your lender showing a schedule of the accrued interest.

For this accrual we took (.01 X 100,000) / 12 months = $83.33 per month

The loan was granted on 04/10/20 so we owe 20 days accrued interest at 04/30/20:

(83.33 / 30) X 20 days = $55.56

Recording Loan Expenses

Continue to use your regular Business Checking accounts to pay expenses just as you normally would. If you have payroll direct deposit, it is not necessary to change the established cash account. But after payment of each expense, make a transfer from your PPP cash account to your regular business checking account as reimbursement for the allowable expense. Move the funds in real life and in your software.

In Sage 50, you can use the Write Checks transaction to record the transfer. Add a description that labels the expense as a PPP expense such as �PPP Transfer for electric bill�

Here is an example of transferring cash back to the Payroll Account after issuing the 04/15/20 payroll:

Tip: Do not combine a transfer for utilities and for payroll in a single transfer; do a separate transfer for each � one transfer per expense. Use your judgement on what does make sense to put into a single combined transfer. This combination makes sense: payroll wages + payroll taxes. This combination does not make sense: Payroll + Utilities + Rent in a single transfer. Instead, make three separate transfers.

Here is an example of a utility payment from the Regular Checking account: First, pay the bill as you normally would.

And here is the reimbursement from the PPP loan proceeds:

You can track your spending by viewing the pertinent accounts on the General Ledger report:

Note that all the activity regarding PPP loan expenditures is shown in the PPP cash account.

The PPP loan balance remains unchanged. If the loan is forgiven, you will reclassify all or part of the loan balance to Other Income.

The Account Reconciliation report can also be used to view the cash activities:

At the end of the 8 weeks, you can apply for loan forgiveness. Applications for loan forgiveness will be processed by your lender. After you submit your application, your lender is required by law to provide you with a response within 60 days.

These are the required documents you will need to collect and provide with your PPP forgiveness application:

Documents verifying the number of full-time equivalent employees on payroll and their pay rates, for the periods used to verify you met the staffing and pay requirements:
Payroll reports from your payroll provider
Payroll tax filings (Form 941)
Income, payroll, and unemployment insurance filings from your state
Documents verifying any retirement and health insurance contributions
Documents verifying your eligible interest, rent, and utility payments (cancelled checks, payment receipts, account statements)

If the loan is forgiven, you can zero-out the loan balance and reclassify it as Other Income. In this example, we used a Payment transaction to reclassify the entire loan balance:

This removes the loan balance from the liabilities and recognizes it as income.

What happens if your loan is not forgiven?

Your lender may allow you to provide additional documentation so they can reevaluate your request.
Otherwise, your outstanding balance will continue to accrue interest at 1%, for the remainder of the 2-year period.
There is no prepayment penalty. You can pay off the outstanding balance at any time with no additional fees.

By Tim Hambsch

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How to Activate Sage Drive for Remote Access

4/16/2020

If you have purchased the Sage 50cloud 2020 software and want to activate the Sage Drive feature below are the steps to do this:

Section I: New customers must create a Sage ID

Open a company
Select File, Sage Drive, and then select Share Company
Select Sign up now
Enter the requested information to create your Sage ID
- Note: Make sure you have access to the email address you use because you will need to activate your account from this email address.
Select Create
From your email, select the Sage ID Activation link
If you are the person who will be sharing a company, select Register
In Sage, select File, Sage Drive, and then select Manage User Access (Management Center)
Enter Email address and Password
Click Sign In and you will get a message stating the activation is complete

Section II: If/once you have an existing Sage ID

Open a company
Select File, Sage Drive, and then select Manage User Access (Management Center)
Log into your Sage ID
Once activated you will be able to share a company, manage users, or stop sharing a company from the File, Sage Drive menu in Sage

Note: Sage 50cloud must be activated before you can access Sage Drive under the file menu.

If you would like to learn more or purchase the Sage 50cloud 2020 please contact us at 1.866.339.8224. If you have purchased the software and don't want to set up Sage Drive yourself you can contact Sage technical support at 1.800.747.3888.

By Tim Hambsch

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Setting Up Sage Drive Multi-User

4/15/2020

In light of the COVID-19 crisis we have had a number of inquiries on the Sage 50cloud product that provides for remote access capabilities. To set up remote access capabilities you will need the following:

Sage 50cloud version 2019.0 or later installed on your computer
Sage Drive multi-user license (separate from and in addition to the Sage 50cloud multi-user license). To purchase the Sage Drive multi-user license, please contact us at 1.800.339.8224.
Each Sage 50 user accessing the company will need to sign into Sage Drive and have a unique Sage ID, even local users accessing it over the local network
A high-speed internet connection is required (For best performance a download speed of at least 20mbps and an upload speed of at least 10mpbs are recommended. At a minimum, a download speed of 20mbps and an upload speed of 5mbps are required.)
- For companies less than 500 megabytes that do not use inventory or multiple lines on transactions an upload speed of 5mbps is usually sufficient. For companies greater than 500 megabytes that do not use inventory or multiple lines on transactions an upload speed of 10mbps or more is recommended for best performance
- For all companies using inventory and/or multiple lines on transactions an upload speed of 10mbps is recommended for best performance
Note: The data size limit for Sage Drive Companies is 5.3GB, which includes attachments and archives
If your database size is larger than 5.3GB, you can use the purge process to reduce the database size.

Here's recent testimonial of a Sage 50cloud user that purchased the product to work from home. This particular customer was very reluctant to transition from the perpetual to the SAeg 50cloud product due to the "unknowns" of the implementation process but Sage tech support assisted her and she was up and running in a little over an hour.

"hey sheila - just letting you know that 50c is making all the difference for us. I REALLY appreciate all the time you have spent over the last 3(!) years answering my questions, and especially the time you spent a few weeks back helping me scramble to quickly transition to the cloud product."

-ilene

If you do not own the Sage 50cloud product please contact us for a quote! Email us the year and product you're currently on and how many user licenses you need and we'll provide you with a quote!

By Tim Hambsch

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What's New in Sage 50 2020?

4/6/2020

Below is a summary of the feature enhancements to the Sage 50 2020 product:

2020.0 Release

� New and expanded data entry fields

o Billing and mailing address from 30 to 50 characters

o Deposit ticket ID�s to 20 characters

o Item Type to 20 characters

o Vendor notes now available � 255 characters

� Additional payroll withholding fields

o For new paid family leave legislation � require added formulas � special 1 and 2 now have special 3, 4 and 5

o Tax bulleting � Sage 50 Payroll Solutions folder � Tax Service Bulletin file

� Ability to email sales forms to additional customer contacts

o Can now select to email a secondary contact from a drop down list

o Available for quotes, SO�s, Proposals, Invoices, Receipts and CR memos

o Only available on task windows and NOT when batch printing / emailing

� New in-product messaging

o Stored in the Sage message center � added a �Bell� inbox icon

� Upgraded database engine

o Pervasive PSQL Workgroup Database Engine upgraded to Actian Zen version 13

� Improves performance in some database operations

� Includes the latest security countermeasures to protect your data

� Helps ensure compatibility with the latest Windows updates

� Installs silently and functions in the same manner as Pervasive did

� You CAN run releases 2019 and 2020 on the same computer using Actian Zen database engine for 2019, instead of Pervasive

� 2018 and earlier will NOT operate properly if 2020 is installed on the same computer

� You may not be able to run Sage 50 on a computer that runs other software using Actian Zen or Pervasive PSQL, as possible conflicts may occur

� Due to the database changes the Data Conversion Wizard will need to be ran to convert your company data to release 2020.0 format

� Run the conversion on the server before trying to access your data on a workstation

� 2020 version can only convert databases that are in version 2014 or newer

2020.1 Release

� New payroll tax law compliance and improvements

o Employees hired on or after 1/1/2020 will be required to complete a revised W-4 form

o Redesigned to comply with the 2017 Tax Cuts & Jobs Act

o Employees hired before 2020 are NOT required to submit a new form because of the redesign

o Employees hired prior to 2020 will need to use the new form if they want to adjust their withholdings

o Changes were made on the Employees Withholding tab to accommodate the changes to the W-4 form

o In previous version entering �99� in the Allowances field would effectively make the Employee�s status �Exempt� from federal withholding during payroll � for employee�s hired in 2020 or later you�ll need to enter �99,000� or greater in the Line 4b � Deductions Annual Amt field to effectively stop calculating federal withholding for the employee

o Include amounts entered on Line 4 of the W-4 Multiple Jobs Worksheet in the �Addl Withholding� field as POSITIVE values and check the �Multiple Jobs� box

o When upgrading to 2020.1 the �Employee Usses W-4 prior to 2020� box will be automatically checked for existing employees

o The new tax formulas that calculate payroll are scheduled to be released with the January 2020 Tax Service in late December 2019

o Payroll reports, such as the ax Liability Report will use the new tax formulas and values entered in the new withholding fields to calculate

o When released by the IRS, a printable version of the redesigned W-4 will be made available in the Aatrix Payroll Tax Form selector

� Improved 1099 eFiling process � you can eFile 1099-MISC and 1099-DIV forms

o Previous steps:

� Export a 1099 report and import the data into the Aatrix 1099 Preparer

� Completing a data mapping process

� Merging payments made to the same vendor into one filing record

� If you needed to process many vendor 1099s the steps were time consuming and complicated

o New steps:

� Open the Aatrix 1099-MISC form and walk through the wizard to print and eFile your 1096 and 1099 forms � this requires an Aatrix eFile subscription

o The following must be met to print and eFile 1099�s:

� A 1099 Type must be defined within each vendor record

� Payments must be posted to G/L accounts configured for 1099 reporting

� Payments made to a vendor must meet or exceed lower limits

� The payroll year in which 1099s will be printed must be open

o Steps to submit your eFile information to Aatrix during this process include:

� Login in to Aatrix with your User ID and Password

� Verify your enrollment information

� Review payment details and credit card information

� Select desired 1099 submission dates

� Verify your mailing address

� Confirm and submit your 1099 information for processing

� New Aatrix Human Resource Forms & Compliance

o Select from Reports & Forms -> Forms -> Human Resource Forms and they launch like the payroll tax forms do but an eFile subscription is required

o After an initial setup wizard a list of packets and individual forms will display (over 80 of them)

� Packets contain groups of forms for events such as Pre-Hire, New Hire, Probation and Termination

o You can populate the forms and packets by selecting an employee from the drop down list

o Packets and forms are customizable but you can NOT add a new data field from Sage or an empty data-entry field

o History tab displays previously edited and printed forms

o If alerts are enabled during setup, the Alerts tab will list employees that have been recently added to your employee list, have completed their probationary period, or have been terminated

o You can then print out the appropriate forms packet and make sure the proper paperwork is submitted and/or filed on time

o There is also an Employee Manual that can be customized in Word

� And more!

o In-product messaging about new features and the value of connected services and the Sage 50 Cloud

o Golden badges next to a menu item indicate there are new features

o Cloud & Mobile area is being converted to Apps & Services � this is where you can access:

� Microsoft Office 365

� Cloud Backup

� Sage Bank Feeds

� Sage Drive

� Paya

� Invoice Payments

o There�s a �Visit� link to access the Sage US marketplace in order to find additional add-on apps

o Mobile Invoicing setup is on the main file menu

o California Consumer Privacy Act (CCPA) was enacted on June 2018 and becomes effective January 2020 (with 12-month look back period)

o The CCPA applies to all for-profit businesses doing business in CA, that collect CA consumers� personal information, or companies which have such information collected on their behalf

o The CCPA sets out the responsibilities of businesses in relation to:

� The transparency under which they must operate with regard to personal information

� The rights they must give CA consumers and households with regard to their personal information

o Sage U has training courses on the CCPA- live and eLearning

2020.2 Release

� New attachments functionality

o You can drag and drop attachments into the Attachments window � you CAN drag multiple files at a time

o Functionality will NOT work if you open Sage 50 in the �Run as Administrator� mode

o List views now have an �Attachments� column to see which records have attachments linked to them

� List windows currently supporting this feature include:

� Customers

� Sales Invoices

� Purchase Orders

� Purchase Invoices

� Payments

� New default cash account option for receipts

o By default Receive Money remembers the last cash account selected

o A new default �cash account� can be enabled and selected on the Customer Defaults -> Terms and Credit tab

� This does NOT override the custom Cash account selected on the Maintain Customers -> Payment & Credit tab

� Expanded Invoice Number fields on Payments and Receive Money task windows

o Previously expanded the field size on Purchase Invoices and Sales Invoices

o Newly expanded fields � Payments and Receive Money columns that display the longer invoice reference fields

� New Inbox Notification Panel

o Inbox icon on the main screen located next to the system date will now show if there are messages

o When you click the icon it will dock a �Feed� screen showing the messages

� Updated navigation center and access points

o You can now access the new HR forms added in 2020.1 from the Employees & Payroll Tasks window under the �Forms� icon

o The �Cloud & Mobile� area in the navigation center (left pane) has been renamed to �Apps & Services� � the �Apps & Services� area now has the following:

� Connects to online features such as Office365, Sage Drive and Sage Bank Feeds

� You can link to the Sage Marketplace to find other apps (add-ons) such as Avalara Sales Tax mgmt. and Credit Hound Collections Mgmt

� And there is still more!

o Microsoft has discontinued support for Windows 7 as of January 14^th, 2020

� It is recommended to upgrade your system to a supported version of Microsoft Window before installing Sage 50, such as Windows 10

� Beginning with release 2020.2, Sage 50 will display a warning message when installing on a Windows 7 computer

� Although you CAN currently install Sage 50 Release 2020.2 and earlier on a Windows 7 system, some features may NOT function properly

� Future new functionality will NOT be tested on Windows 7 and future updates can NOT be guaranteed to install

If you have questions or would like to purchase the Sage 50cloud or perpetual license 2020 product contact us at 1.800.339.8224.

By Tim Hambsch

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Upload NACHA File in Sage 50!

4/1/2020

Can Sage 50 create ACH Files? YES! Do you need an upload file for your ACH payments that will meet the NACHA file format requirements? Want it produced directly from Sage 50 without having to export information to Excel and manipulate it each time? Don�t want to pay for an add-on program to do this for you? We can help you by creating this upload file directly from Sage 50 using Sage Intelligence Reporting (SIR). It�s a simple process � run the report for the date range required, save the file and then upload the file to your bank and you�re done! See a sample file below that is generated directly from Sage 50.

Ach

If you need to have NACHA file created give us a call at 1.800.339.8224. Here are just a few of the Sage 50 custom reports we've created using the Sage 50 Intelligence Reporting feature.

By Tim Hambsch

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