How to Record Debtors & Creditors Opening Balances Into Quickbooks

HOW TO RECORD DEBTORS & CREDITORS OPENING BALANCES INTO RECKON ACCOUNTS

The following is the procedure for clients whose financials and Tax Return are prepared by their Tax Agent on an “Accruals” basis and whose BAS is prepared each time on a “Cash” basis.

Each of your open invoices from Accounts Receivable needs to be entered into Reckon Accounts one by one, via Invoices.

Each of your open bills from Accounts Payable needs to be entered into Reckon Accounts, one by one, via “Enter Bills”

When doing the above you need to record them as per the following notes:

1. Create an Item in your items list called “Opening Balance”. This item needs to be an “Other Charge” item and needs to be linked to the “Opening Balance Equity” Account.

It needs to have the default Tax Code as GST. This is assuming all of your sales contain GST. If you have some GST sales and some GST Free Sales (for instance if you are a Medical or Education Industry client) then you will need to set up two items – one called “Opening Balance with GST” with the default tax code set to GST and one called “Opening Balance – GST Free” with the default tax code set to “FRE”.

2. Record the Invoices exactly as you would a normal Invoice EXCEPT DO NOT RECORD THE USUAL INVOICE ITEM. Instead use the Item you have created called “Opening Balance.”

You will need to use the correct Tax Code for every Invoice – ie. GST.

3. Record the Bills exactly as you would a normal bill EXCEPT DO NOT USE THE USUAL EXPENSE ACCOUNT. Instead choose the “Opening Balance Equity” account as the Allocation account

You will need to use the correct Tax Code for every bill – ie NCG or NCF.

4. Date the Invoice or the bill the correct date of the invoice eg. 10.06.09 and it will then be in your system ready to record a payment to it once you receive or make the payment after the 1st of July.