Note: Changes made to this part of the application can significantly affect your data. If you are unsure, speak to your Accountant first.
If you are transferring from another accounting package, then it may be necessary to enter an Opening Balance for all of your existing accounts.
Step 1 : Ensure that the Conversion Date is correct
The Conversion Date is the first date that you start to enter transactions in AccountsPortal. Once you have decided on a Conversion Date (this should be the start of a VAT reporting period, or a calender month if you are not VAT registered), ensure that your accounts from the previous system are up to date; for example, if your Conversion Date is 01 July 2010, then the accounts from the previous system should be complete up to 30 June 2010.
If you are not converting from another system, the the Conversion Date should be set to the date that your company started trading.
The Conversion Date for your organisation can be found in Settings > Financial Settings
Step 2 : Add an Opening Balance for each of your existing accounts
To enter your opening balances into AccountsPortal, navigate to the Settings tab, click the Journals link and then click on the Add New Opening Balance button.
- Date: For new Opening Balance transactions, the Date field will default to 1 day before the Conversion Date specified in the Organisation's setting. Although you can set this to an earlier date if you wish, you cannot choose a date greater than or equal to the Conversion Date.
- Reference: Optionally enter any relevant text.
Enter a separate line item for each account that you are converting from your previous accounting system; you can add as many line items as you wish.
- Account: Enter the account against which the value should be recorded. Use the drop down arrow to search available accounts or click in the field and enter free text to find matching values. If you cannot find an appropriate account, check your settings for the Chart of Accounts and create a new account if required. If you are unsure of any amounts or accounts, then you can post the item to the Conversion Suspense (account code 3200). This should only be seen as a temporary account and the value should be appropriately reposted before you finalise your year-end reporting.
- Description: Optionally enter a description for each line item.
- Debit / Credit: Enter a debit or credit for each line item. Consult your accountant if you are unsure as to the usage of debits and credits.
- Memo: Optionally enter any relevant text.
Once you have entered an Opening Balance for each of your existing accounts, make sure that the total Debits equal the total Credits and then click the Save button.
Step 3 : Adding Transactions before the Conversion Date
You can enter other transactions where the transaction date is earlier than the Conversion Date. For example, you may wish to enter a sales invoice or sales credit note that was issued from your previous accounting system but is still oustanding on or after the Conversion Date. To do this:
- Ensure you have created an appropriate Tax Status if you are VAT / GST / Tax registered. You must carry out this step prior to entering the transactions which follow. This is especially important if you use the Cash Basis for reporting your tax.
- Enter the transaction into AccountsPortal, making sure to use the original invoice date or credit note date (i.e. the date should be before the Conversion Date). Enter the line items as you would have in your previous accounting system taking special care to use the correct Tax Rates if you are VAT / GST / Tax registered.
- Ensure that the Conversion Balance (see above) for the Accounts Receivable account includes the outstanding amount on the sales invoice or credit note at the Conversion Date.
- When you receive a payment on the above invoice (i.e. on or after the Conversion Date), proceed to capture the payment in AccountsPortal.
- Apply the same process for outstanding purchase invoices and purchase credit notes and ensure that the Opening Balance for the Accounts Payable account includes the total of these outstanding transactions.
If you have added in Opening Balances for the Accounts Receivable and Accounts Payable accounts, you should consider adding the transactions which make up these balances. This will ensure that the Aged Receivables and Aged Payables reports correctly reflect the ageing on all outstanding invoices and credit notes.
With the exception of Opening Balance transactions, any other transaction entered into AccountsPortal before the Conversion Date will not be taken into account for reporting purposes. The Aged Receivables and Aged Payables reports will, however, correctly reflect the ageing on all outstanding invoices or credit notes, including those entered before the Conversion Date.