Hello,
I am starting bookkeeping of a company which is already in operation.
I have opened the balance sheet and updated the balances however I can’t make Profit and loss to work.
I did a Journal Entry (JE) to all accounts and it is balance but how do I post it so it shows in all accounts.
Please help, I am new to this software. I am using Desktop edition
Guide says click create, I am not seeing create button
So that we understand your situation.
- Are you transferring from another accounting system ?
- Do you have in the BS Equity section an account titled Starting Balance Equity ?
- Why are you doing the JE ?
- What is your financial year ending date and what start date have you entered ?
Yes. I was using excel (all manual system )
Year end Nov 30, 2016
Start of year Dec 01, 2016
Yes I have entered the BS and it i balanced.
I am doing JE for IS so that when comparing 2017 year end, I have numbers to look at.
Alternative, I will be glad to upload trial balance if I know how to do that.
Can you post a screen shot of the page where you are trying a to make the Journal Entries?
Ok, that JE in itself will cause a conflict with the opening “Retained Earnings” balance that you have entered. Let say your total Retained Earnings as at Nov 30 was 6,000, which you have entered as the Dec 01 opening balance. Now lets say that the Retained Earnings just for the year 2016 was 2,000. If you attempt to put in the 2016 P&L figures via a JE, then that 2,000 is going to be duplicated as it is already apart of the 6,000. Furthermore, you can’t change the opening balance to 4,000 as then the opening balances wont balance.
The easiest solution for you would be to go to Settings - Budgets and enter your 2106 figures
as a 2017 Budget so you can have the comparisons, without the data conflict.
Ok. I get your point.
But still why it won’t post the JE which I may have to do in future.
I would like to find the fix today rather than later when I have data in it and can’t make changes later.
The JE form should like this, perhaps you need to scroll down to see the “Create” button
PS: click on the image to see it in full
Thanks for the help.
I changed the opening date to Nov 30, 2016 and I was able to post JE
Since my JE was debiting the RE, P&L sent credit to RE which nullified the balance. Opening balance is matching and BS is balance.
Good to know some tricks. Loving this software.
However, I don’t seem to update the system generated depreciation account. I have created new depreciation account.
Any trick, help will be much appreciated.
Thanks
The manager design in a way we used less Journal Entry, is better for you read first every features currently available.
The system generated P&L Depreciation account is a “control account” and can only be posted to from the Fixed Assets tab depreciation inputs. The same applies to the BS - Accumulated Depreciation account.
The only “trick” would be, enter the individual Fixed Asset’s - Accumulated Depreciation opening balance as at the Nov 30, 2015 figure, then enter the 2016 depreciation figures as a transaction.
This would also require the RE opening balance to be adjusted by the reduction in Accumulated Depreciation opening balances from 2016 to 2015 levels, as that difference will be added back when the 2016 depreciation is posted to individual Fixed Assets.
Entering budgets would be far simpler.
I read the guide and it also talks about doing JE to GL to update balances. However, it talks about doing unbalance JE with which I don’t agree. I hit the RE and my opening balance of RE is good.
I can understand about the controlled account and I was not sure. I created an account for depreciation expense for 2015-2016 and in 2016-2017 I will use system generated depreciation account.
So far so good
When entering startinging balances, many are entered/posted directly to the accounts. however for accounts like Cash Accounts, Accounts Receivable, Accounts Payable & Inventory Items you don’t enter gross amounts but nett amounts to the sub accounts.
If your Accounts Receivable total is made up of three Customers balances, then those Customer opening balances are created by recording their outstanding invoices. These are not entered via the JE but when combined with the JE balances, they cause the Starting Balances overall to be balanced
When you change accounting systems, you directly post the balances and don’t go through the sub ledgers.
I have implemented accounting systems on my job and yes I directly posted AR AP etc.
With Manager you do go through the sub ledgers. How else can you give individual inventory items their qty and cost values.
With Manager you can’t post directly to the parent account without the nominating of a sub ledger.