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Sage 100 Users: Conquer Minnesota’s New Sales Tax & Delivery Fee Headache-Free

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Starting July 1, 2024, Minnesota is imposing a $0.50 delivery fee on taxable goods over $100 delivered within the state. This fee applies regardless of the delivery method or origin, and must be listed separately on invoices. Certain goods (food, medicine, etc.) and retailers with low sales are exempt.

For official guidance see the Minnesota Department of Revenue website and consult your tax advisor. We are not in the business of providing tax or accounting advice.

Minnesota Retail Delivery Fee (Effective July 1, 2024)

What is it? A $0.50 fee applied to certain retail deliveries within Minnesota.

When does it apply?

  • Transaction total: $100 or more of taxable tangible personal property and clothing (excluding the fee itself and exempt items listed below)
  • Location: Delivery within Minnesota

Items Exempt from the Fee:

  • Drugs
  • Medical devices, accessories, and supplies
  • Food, food ingredients, or prepared food
  • Certain baby products (some may still be subject to sales tax)

Important Notes:

  • Calculation: The $100 threshold ONLY includes charges for taxable tangible personal property and clothing.
  • Frequency: Charged once per transaction, regardless of the number of shipments
  • Display: Shown as a separate line item on receipts as “Road Improvement and Food Delivery Fee”
  • Tax: Not subject to sales tax if stated separately
  • Sourcing: Follows Minnesota sourcing rules

Refunds:

  • Not refundable: If items are returned or the retailer provides a refund/credit equal to or less than the purchase price.
  • Refundable: If the delivery is canceled by the purchaser, retailer, or delivery provider.

Who is exempt?

  • Retailers: With less than $1 million in Minnesota retail sales in the prior year. This calculation includes all taxable and nontaxable retail sales, but excludes sales for resale (with a valid exemption certificate).
  • Marketplace providers: Facilitating sales for retailers with less than $100,000 in sales through the marketplace in the prior year

Additional Considerations:

  • The fee can be collected from the purchaser or paid directly by the retailer.
  • Retailers must update their systems to calculate and collect the fee.

Sage 100 users have multiple options to manage this fee:

  1. Manual Miscellaneous Charge: Add a $0.50 charge to applicable orders/invoices.
  2. New Sales Tax Code: Automatically calculates the fee when the taxable amount exceeds $100.
  3. AvaTax: Utilizes AvaTax’s built-in tax rule for automatic fee calculation.
  4. DSD Extended Solution SO-1052: Automates the addition/removal of the fee based on order criteria.

The DSD Extended Solution SO-1052 is one option to assist you in resolving this new requirement. The solution offers automation, flexibility, and accuracy in handling this and future state-specific fees.

For step-by-step instructions on your options to handle this new sales tax requirement see this excellent summary from Jon Reiter.

How To Purge Cleared Bank Reconciliation Transactions in Sage 100

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To purge cleared transactions in Sage 100 Bank Reconciliation, ensure that the “Out of Balance” amount in both the Reconcile Bank window and the Bank Reconciliation Register/Report is $0.00. Then, open the Bank Reconciliation Register (or Report for version 4.40.0.3 and above), deselect the “Summarize Activity” checkbox, and set the necessary report options including document types and date range. After printing or previewing the report, if the out-of-balance amount is still $0.00, you will be prompted to remove the cleared documents as of the specified date. Confirm the prompt to complete the purging process.

Step-By-Step: Purge Cleared Transactions in Sage 100 Bank Reconciliation

Requirements

Before you can purge cleared transactions from the Sage 100 Bank Reconciliation module, ensure the following:

  • The “Out of Balance” amount in the Reconcile Bank window is $0.00.
  • The “Out of Balance” amount on the Bank Reconciliation Register/Report line is $0.00.

Steps for Sage 100 4.10 – 4.40.0.2

  1. Open Bank Reconciliation Register
    • Go to Bank Reconciliation > Main > Bank Reconciliation Register.
  2. Set Report Options
    • Deselect the “Summarize Activity” checkbox.
    • Set “Document Types to Print” to “All Types”.
    • Set “Print Cleared Documents” to “All Documents”.
    • Set “Bank Code Operand” to “Equal to”.
    • Select the applicable bank code for “Bank Code Value”.
    • Set “Document Date Operand” to “All”, “Less than”, or “Range”. If using “Range”, leave the first date blank and select an ending date to purge up to that date.
  3. Print or Preview the Report
    • Click “Print” or “Preview”.
    • Note: If security settings are not configured, the report must be printed to a printer, file, or deferred.
  4. Purge Cleared Documents
    • Close the Preview window.
    • If the out-of-balance amount is $0.00, a message will appear: “Do you want to remove cleared documents as of mm/dd/yy?”.
    • Click “Yes” to purge the cleared documents.

Steps for Sage 100 4.40.0.3 and Above

  1. Open Bank Reconciliation Report
    • Go to Bank Reconciliation > Main > Bank Reconciliation Report.
  2. Set Report Options
    • Deselect the “Summarize Activity” checkbox.
    • Set “Document Types to Print” to “All Types”.
    • Set “Print Cleared Documents” to “All Documents”.
    • Set “Bank Code Operand” to “Equal to”.
    • Select the applicable bank code for “Bank Code Value”.
    • Set “Document Date Operand” to “All”, “Less than”, or “Range”. If using “Range”, leave the first date blank and select an ending date to purge up to that date.
  3. Print or Preview the Report
    • Click “Print” or “Preview”.
    • Note: If security settings are not configured, the report must be printed to a printer, file, or deferred.
  4. Purge Cleared Documents
    • Close the Preview window.
    • If the out-of-balance amount is $0.00, a message will appear: “Do you want to remove cleared documents as of mm/dd/yy?”.
    • Click “Yes” to purge the cleared documents.

When Should I Run Sage 100 In The Cloud?

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Introduction to Sage 100: Tailored for Mid-Sized Businesses

Sage 100 is an Enterprise Resource Planning (ERP) solution that is affordable and customizable. Priced at about $1,300 per year for a single user, it caters to a range of business needs, including auditing, financial reporting, inventory management, and various customizable modules​​. Primarily targeting mid-sized businesses, Sage 100 offers more than basic accounting capabilities. It’s particularly well-suited for companies in need of in-depth financial management, reporting, and insights, as well as comprehensive payroll and time tracking​​. Manufacturing and distribution companies find Sage 100cloud particularly beneficial, thanks to features like inventory requirements planning​​.

Now, let’s revisit the deployment options for Sage 100:

On-Premises: For the Control Enthusiasts

When to Choose:

  • Ideal for businesses prioritizing full control over software and data.
  • Best for companies with strong IT infrastructure and resources.
  • Suitable for compliance-driven data storage in-house.
  • Good choice for areas with unreliable internet connectivity.

Sage Partner Cloud: A Modern, Flexible Solution

When to Choose:

  • For businesses without significant third-party integrations and primarily seeking cloud-based accounting.
  • Generally deployed and managed by your Sage partner for an additional fee.
  • Offers Sage 100, Sage 300, or Sage X3 in the cloud using platforms like Microsoft Azure, AWS, or other Sage-accredited platforms​​.
  • Designed for post-pandemic flexibility and cost-effectiveness​​.
  • Offers scalability, business continuity, and secure, reliable hosting with minimal downtime.
  • With easy migration from on-premises to the cloud, this option ensures seamless migration without retraining​​.
  • For more information, visit Sage Partner Cloud.

Third-Party Cloud Host: Customizable and Innovative

When to Choose:

  • Best for companies looking to move accounting AND other computer systems to the cloud
  • One option – Summit Hosting – offers a highly customizable and secure cloud environment, ideal for maintaining control over infrastructure and data​​.
  • Desktop as a Service (DaaS) allows secure access to virtual desktops and applications from anywhere​​.
  • Empowers remote workforces with managed Virtual Desktop Infrastructure (VDI) solutions​​.
  • Managed Platform as a Service (PaaS) for the development of flexible, customized virtual platform applications​​.
  • Offers application hosting, hybrid cloud, and managed public cloud solutions​​​​​​.
  • Emphasizes collaboration with clients to create unique cloud solutions​​.
  • For more information, visit Summit Hosting Cloud Services.

Conclusion

Choosing between on-premises, Sage Partner Cloud, and third-party hosts like Summit Hosting depends on your control needs, compliance requirements, IT infrastructure, and physical resource investments. Each option offers distinct advantages, from on-premises control to Sage Partner Cloud’s balanced cloud solution, and the flexibility and customization of third-party hosts. Consider your business needs carefully to make the best decision.

When Is Sage 100 Payroll 2.24 for 2023 Due?

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According to this post on the Sage Community, Payroll 2.24.0 availability is scheduled for December 14th, 2023.  Compatibility is Sage 100 version 2020 or higher.

Expect that another update may be issued for tax filings ( W2 and 1099 ) as noted in this November 7, 2023 post in the Sage Community – Alert: Payroll and 1099 compatibility for Sage 100 is changing. It is believed that the same v2020+ requirement will exist.

From the community post:

Effective with the release of Payroll 2.24, payroll and 1099 customers on versions 2018 and 2019 will need to be running one of the following versions of Sage 100 to install the latest release of Payroll and 1099 forms:

  • 2023.x
  • 2022.x
  • 2021.x
  • 2020.x

Customers not running a compatible version of Sage 100 will experience a failure of the Payroll update installation and the inability to generate 1099’s, W-2’s or associated tax reporting documents.

Sage TLS 1.2 Change Deferred For Some Through March 2024

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As Sage has communicated to partners and customers for over a year, TLS 1.0 and 1.1 will no longer be supported by Sage License Servers beginning in October 2023. This means that Sage 100 subscription products using these older TLS protocols may not communicate with the Sage License Servers and could go into read-only mode.

Today, Sage announced they’ve developed a means to pace the impact on customers in batches. The timing of this change means that some customers will now have until March 1, 2024, when Sage expects to complete the TLS changes.

Which Sage 100 versions are already TLS 1.2 compliant?

  • 2023.x
  • 2022.x
  • 2021.x
  • 2020.1 (PU1)
  • 2019.4 (PU4)
  • 2018.10 (PU10)

If you are on one of these releases or higher, your Sage 100 product is already compatible with TLS 1.2 and will not be impacted by this change.

What happens to customers not using a TLS 1.2 compliant version of Sage 100 or Sage 300?

Noncompliant customers will begin receiving warnings beginning with renewals dated October 2023. The notice will say that their product subscription has expired, and they have 45 days to upgrade their product to a TLS 1.2 compliant version before it goes into read-only mode.

How is Sage pacing the impact on customers?

To minimize any business impact, Sage is pacing the TLS 1.0/1.1 deprecation in batches, which they expect to finalize by March 1, 2024. These batches’ timing, size, and allocation are still being determined.

What can customers do to prepare for the TLS 1.2 compliance requirement?

If you use a version of Sage 100 that is not TLS 1.2 compliant, you should contact your Sage partner or reseller to discuss your upgrade options.

We encourage all customers to upgrade to a TLS 1.2 compliant version of Sage 100 as soon as possible to avoid disrupting their business.

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