ADDING OPENING BALANCES



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ADDING OPENING BALANCES This document outlines how to enter Opening Balances when you are starting with GlobalBake s native accounting features. In order to bring on the opening balances you will need a balanced trial balance from your existing accounting system and customer, supplier and bank account details that match the totals in your trial balance. It is important that opening balances are correct as these are the basis for continuing financial transactions and the integrity of your business. There is never an ideal time to transition between accounting systems and for the initial year, if the transfer is not at year end/start then you will need to manually integrate the current year reports between the two systems. ADDING OPENING GENERAL LEDGER BALANCES The majority of the trial balance figures will be entered with a single split journal. Refer to the document on GL Journals for information about creating a split journal. Once the majority of the trial balance has been entered the split journals control account will have a non-zero total that should reflect the value of the customer, supplier, bank accounts and stock values. Each of these totals will be entered via separate entries to reflect the component parts of the total. For example the Accounts Receivable total in the trial balance should match the value of all the customer journals that you will enter. ADDING OPENING CUSTOMER BALANCES To add opening Customers balances, you need to know the balance at the opening date and which GL code all your opening balances have been coded, usually a Historical Balancing or Suspense account. 1. From the GlobalBake main menu select Customers -> Customers Journals and click Add. 2. Enter the Customer Alpha Key or Account number, date of balance, reference (usually Opening Balance or similar), and amount. The amount is the balance outstanding. Enter a positive amount if there is an outstanding balance or a negative amount if there is a credit on the debtor account. 3. Enter the GL code you are coding your opening balances to. PAGE 1

4. Click the Save & Exit button. You will now get a list of any receipts that have been entered that you can allocate to the opening balance. Click Exit if you have none to allocate this is the most likely scenario for opening balances. ADDING OPENING SUPPLIER BALANCES 1. From the GlobalBake main menu select Supplier -> Supplier Journals and click Add. 2. Enter the Supplier Alpha Key or Account number, date of balance, reference (usually Opening Balance or similar), and amount. The amount is the balance outstanding. 3. Enter the GL code you are coding your opening balances to. 4. Click the Save & Exit button. You will now get a list of any invoices that have been entered that you can allocate to the opening balance. Click Exit if you have none to allocate. LOAD JOURNALS TO SET BALANCES There is a utility which allows you to load the journals for each customer. From the GlobalBake main menu select File -> Administrator Utilities. Expand the menu option GlobalBake Setup and select Import Customer Balances. The import requires a *.xls (Microsoft Excel) file. The file needs to be set up with the column headers alphakey, date, ref, amount. This is the customer alpha key that is the one with the balance, a date, then a reference, then an amount. PAGE 2

AGED TRIAL BALANCE You can check whether the amounts have been entered by running an aged trial balance report. From the GlobalBake main menu select Reports -> Customer Account Reports -> Aged Trial Balance. Change the second drop down menu to All Customers and click Print. You should check that the customers figures have been imported correctly and that the total matches what was in the trial balance. Similarly for same general process can be followed for the suppliers From the GlobalBake main menu select Suppliers -> Aged Trial Balance. PAGE 3

HOW TO CREATE AN OPENING BANK BALANCE Before you can enter a bank statement you need to set the initial opening balance of the bank account for the amount that is in your trial balance. 1. Go to the Ledger menu and select Cashbook. 2. Click Add. 3. Choose Cashbook Other. 4. Enter the new bank account number. 5. Enter the date to be the day before your bank statement opens. 6. Enter the Analysis Code to be your Suspense account that has the value of your bank account in it. 7. Enter the value of the Bank Account. If the account is overdrawn, enter it as a payment, else enter as a receipt. 8. Save and Exit. Exit back to the main screen. 9. Go to Ledger, Bank Statements. 10. Click the Add button. Click Add (if you have no bank statements the Add screen will automatically appear). 11. Select a Bank account number. 12. Enter the day that the Bank Statement was entered into the system. This defaults to today. 13. In the From Date box enter the date to be the day before your bank statement starts and enter the same date in the To Date box. 14. If you have any unpresented cheques enter these now (see below). 15. The opening balance of the statement is zero. In the Closing box enter the opening value from the bank statement. This may be the same value that you entered a cashbook other transaction for at step 7 or if you have unpresented cheques it will be the value from 7 less the unpresented cheques. 16. Click the Save button. 17. The cashbook other transaction should be listed in the unpresented transaction box. You need to highlight the transaction and click the arrow transferring it to the presented box. 18. Once the transaction has been transferred, the balance flag should be ticked. ENTER UNPRESENTED CHEQUES Each unpresented cheque must be entered separately. 1. Go to Ledger, Cashbook. 2. Click Add. 3. Choose Cashbook Other. 4. Select the bank account number. PAGE 4

5. Enter the date as the day before your system starts. 6. Enter the cheque number in the Bank Reference box. 7. Enter the Analysis Code to be your Suspense account that you are using to put opening balances to. 8. Enter something in the Particulars box to help you identify the transaction. 9. Enter the value of the cheque in the amount box 10. Save and Exit. PAGE 5