I understand that some may suggest I search for this topic, and I’ve done so, along with commenting on the issue, but I’m still lacking a clear answer (link to my query below).
In 2023, I transitioned from Pastel. I painstakingly inputted starting balances for over 500 clients, a time-consuming task. I chose Manager based on glowing recommendations, trusting it would suit my needs better.
Recently, our accountant flagged a substantial amount in the “Suspense” account, which we identified as all the starting balances I entered initially. It now sits as a journal entry in the suspense account. As you’re likely aware, the Suspense account should ideally be at R0 by the end of the financial year.
How can I rectify this? @Joe91 mentioned creating invoices for the starting balances, but does this mean I have to generate 500+ invoices? And where should I allocate them? Should I create an item labeled “Starting Balances” under accounts? Also, how should I handle clients whose starting balances were credit amounts?
Surely, there must be a way to amend this journal entry to resolve the issue?
Thank you for the link, I checked and do not see that I did any of the errors they show.
I also searched for similar posts like I mentioned in my original post
I think you are entering both credit and debit balances using Journal Entry which is wrong. You only enter credit balances of customer through Journal entry (Incase you dont want to enter details of last sales invoice and just want the opening balances to appear) and Debit balances through Sales Invoices. I would suggest creating sales invoices for Debtors (Customers) using Batch create and allocate all to the account “Sales” (and exact oppsite for Suppliers incase of Suppliers). Type opening Balances in the description and you can also change the transaction title to Opening Balance.
And about the amount going into “Suspense” i suspect your Journal Entry is not balanced. You have to Debit/Credit the Retain earnings account to balance your Journal Entry.
Thank you for your prompt response and suggestions regarding the issue with entering starting balances in the system. However, I would like to clarify that the problem stems from a change in the system’s functionality rather than from incorrect data entry on my part.
In 2022, I had the convenience of entering starting balances directly on the same page where I created a client or supplier. This streamlined process ensured accuracy and ease of use. However, it appears that the system has undergone modifications since then, leading to the unintended creation of Journal Entries instead of directly inputting starting balances.
Given this discrepancy, could you please provide guidance on the updated procedure for entering starting balances? It seems that the system’s current workflow differs from what was available previously. Specifically, I would appreciate instructions on how to correctly input starting balances without resorting to Journal Entries and how to ensure that these balances do not end up in Suspense.
Your assistance in resolving this matter would be greatly appreciated. If there are any further details or steps I need to take, please do not hesitate to inform me.
Thank you for your attention to this issue.
2022 version:
As I’ve mentioned before, I have over 500 clients… capturing all those lines in a single screenshot is impractical; I’d need to take multiple screenshots. Moreover, it would be inefficient as you’ll witness precisely what’s in the screenshot I’ve taken, unless you specifically require visibility of the bottom portion as well:
You have many customers with a credit balance, which is unusual but not necessarily incorrect. You need to add an additional line to the journal for the “Out of balance” amount. This will be a credit to Retained earnings account.
I am not sure if you maybe missed the response I sent to @shahabb, but I did not create this journal. I’m well-versed in how journals operate; I’ve created several on the system, and they’ve all been balanced flawlessly.
I’m puzzled as to why the system altered the option to input a starting balance, leading to this issue.
Thank you for your insight. It’s true that many of our customers tend to prepay for the upcoming year, resulting in credit balances. Adding an extra line to the journal for the “Out of balance” amount, credited to the Retained Earnings account, seems like a fitting solution to ensure accurate bookkeeping. I will try this, thanks.
I must admit that I am somewhat perplexed by your statement that the starting balance was removed due to misuse. I’ve always understood that when transitioning to a new system like Manager, one of the fundamental steps is to accurately transfer over existing client balances. If a client from a previous accounting system has a remaining balance, it seems logical to include that balance as part of the starting balance in Manager. Could you please clarify how this action constitutes misuse?
Additionally, to provide some context again - I have not “just started using Manager”, I’ve been actively using Manager since 2022 as mentioned before. During this time, I have indeed transitioned over 500 clients from our previous accounting system, many of whom still maintain balances, either owing money or holding a credit. Given that our organization is a school, this scenario is quite common, and I had assumed it would be supported within Manager’s functionalities.
I appreciate your guidance on this matter and would like to understand what alternative solution you would suggest. If a starting journal entry is not appropriate in this case, I am eager to explore the more suitable course of action.
Thank you for your assistance in resolving this issue promptly.
