Starting Balances Accounts Receivable, Accounts Payable, & Inventory

1

Starting Balances For Inventory Guide
https://www.manager.io/guides/5497

  1. No longer needed - guide needs revision ?
    Set a start date
    Starting balances cannot be entered unless a start date is set. To set a start date, following procedures in this Guide.

  2. Note in Guide
    Starting balances should match the physical count on the start date. If unpaid sales or purchase invoices issued prior to the start date are entered
    to establish starting balances in Accounts receivable or Accounts payable, do not adjust the inventory item starting balance quantities for items on
    unpaid sales or purchase invoices. Manager ignores inventory item quantities on starting balance invoices, only using price information.

This also refers to a start date - should these also be revised ? Does current version still ignore quantiies ? See guides below which state that quantities
neeed to be adjusted.

Starting Balances for Suppliers Guide
https://www.manager.io/guides/7227

  1. Note in Guide
    Carefully consider inventory items on pre-start invoices. If items on a purchase invoice were already received under the prior accounting system,
    subtract them from starting balances for those inventory items, because the pre-start purchase invoice tells Manager they must be received again.

and

Starting Balances For Customers Guide
Guide 5494

1.Note in Guide
Carefully consider inventory items on pre-start invoices. If items on a sales invoice were already delivered under the prior accounting system, add the
quantities back to the starting balances for those inventory items, because the pre-start sales invoice tells Manager they are being delivered again.

This apparently was needed to prevent errors in cash basis statements.

In order to get the data for these adjustments it appears that the user will have to make a worksheet for all the items purchased and sold on
all the unpaid sales and purchase invoices which can be a time consuming task if ther are many invoices involved. Why not have one procedure for setting up
for the accrual basis and another for the cash. The accrual basis would not require any adjustments for quantities on unpaid invoices.

One guide (inventory guide) says ignore quantities on unpaid invoices and the other two say (customers and suppliers) to adjust the quantities. Which is correct ?

2

The topic in the guides entitled “Set start date” should have a notation advising that it is only relevant to earlier versions of the program (e.g. versions prior to XXX.XX.XX). This notation should also be placed where there is a reference to setting a start date.

Not having to set a start date does not mean that there will not be a start date. The start date will be the date you decide to start using Manager.io and is relevant when transferring from another accounting system, whether it is from a manual system or a computer based system. For example if you decided to start using Manager.io on the 1st January 2023 then this will be your start date. This start date is used to determine the starting balances you will enter when setting up balance sheet items.

Both are correct. When entering unpaid invoices as at start date that contain inventory items you will need to adjust inventory item starting balances to ignore the quantities on these unpaid invoices at start date.