Entering Opening Balances & Items - Revision history

Joel: /* What are Opening Items? */

2018-07-31T12:29:51Z

What are Opening Items?

← Older revision		Revision as of 12:29, 31 July 2018
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	=== What are Opening Items? ===		=== What are Opening Items? ===
	When companies move to any new accounting system (referred to as NEOSYS), they usually prefer to enter the outstanding (~~unpoad~~) items of the Trade Creditors & Trade Debtors, rather than entering opening balances. Opening items are unpaid invoices and perhaps a few unallocated receipts or payments.		When companies move to any new accounting system (referred to as NEOSYS), they usually prefer to enter the outstanding (unpaid) items of the Trade Creditors & Trade Debtors, rather than entering opening balances. Opening items are unpaid invoices and perhaps a few unallocated receipts or payments.

	Opening items is a NEOSYS term that corresponds to the "opening balances" of open items accounts in normal financial terminology.		Opening items is a NEOSYS term that corresponds to the "opening balances" of open items accounts in normal financial terminology.

Steve at 09:33, 25 February 2018

2018-02-25T09:33:44Z

Arya Mohandas: /* How to enter Opening Balances */

2015-06-17T07:38:23Z

How to enter Opening Balances

← Older revision		Revision as of 07:38, 17 June 2015
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	There are some special considerations for posting the opening balances of the General Ledger:		There are some special considerations for posting the opening balances of the General Ledger:

	# ~~Replace the~~ a/c ~~number of any control~~ a/c with that of the Suspense Account. NEOSYS will not allow you to post the control a/c balances directly because the control a/c balance will be posted automatically from the postings to the accounts in its subsidiary ledger.		# For control a/c, replace the a/c number with that of the Suspense Account. This is because NEOSYS will not allow you to post the control a/c balances directly because the control a/c balance will be posted automatically from the postings to the accounts in its subsidiary ledger.
			# Remember that it is not neccessary that all accounts in the GL is a control a/c and the above step applies only to control a/c.
			# For non-control a/c in the GL, enter the a/c number.
	# There is no closing line since the total of the General Ledger A/c is zero if it properly balances.		# There is no closing line since the total of the General Ledger A/c is zero if it properly balances.

Ruku: /* Subsidiary Open Item Ledgers */

2015-03-09T12:29:23Z

Subsidiary Open Item Ledgers

← Older revision		Revision as of 12:29, 9 March 2015
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	=== Subsidiary Open Item Ledgers ===		=== Subsidiary Open Item Ledgers ===

	For open item accounts you should enter ~~open~~ items if you want to see outstanding items ~~items~~ by ~~item~~ on the statement but ~~that~~ if you ~~do not~~ then you can enter opening balances only. According to the well known NEOSYS rule, entering any journal in a prior year results in the opening balances of the following years being updated. Therefore the entering of opening items in the last period of the prior year when setting up the system will clearly result in the opening balances of the current year being created~~. Therefore entering opening balances AS WELL is not necessary and this will create DOUBLE opening balances if you do~~.		For open item accounts you should enter opening items if you want to see all the outstanding items one by one on the statement but if you want to have a single outstanding item as the total sum of all then you can enter opening balances only. Therefore entering both opening items AS WELL AS opening balances is not necessary and this will create DOUBLE opening balances if you do.

			According to the well known NEOSYS rule, entering any journal in a prior year results in the opening balances of the following years being updated. Therefore the entering of opening items in the last period of the prior year when setting up the system will clearly result in the opening balances of the current year being created.

	Entering open balances may be done for selected accounts. It is quicker to startup and saves work of entering all the opening items one by one. But then the opening items are not visible in NEOSYS and all you can see is one lump sum as a single outstanding item representing all outstanding items. In this case their statements will show a single outstanding item representing the total of the outstanding items. It is more common to do this for suppliers/payables than clients/receivables since you do not have to send suppliers statements of outstanding items like you do for clients.		Entering open balances may be done for selected accounts. It is quicker to startup and saves work of entering all the opening items one by one. But then the opening items are not visible in NEOSYS and all you can see is one lump sum as a single outstanding item representing all outstanding items. In this case their statements will show a single outstanding item representing the total of the outstanding items. It is more common to do this for suppliers/payables than clients/receivables since you do not have to send suppliers statements of outstanding items like you do for clients.

Priyanka: /* Subsidiary Open Item Ledgers */

2015-03-09T06:50:26Z

Subsidiary Open Item Ledgers

← Older revision		Revision as of 06:50, 9 March 2015
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	=== Subsidiary Open Item Ledgers ===		=== Subsidiary Open Item Ledgers ===

	Enter Outstanding items as follows		For open item accounts you should enter open items if you want to see outstanding items items by item on the statement but that if you do not then you can enter opening balances only. According to the well known NEOSYS rule, entering any journal in a prior year results in the opening balances of the following years being updated. Therefore the entering of opening items in the last period of the prior year when setting up the system will clearly result in the opening balances of the current year being created. Therefore entering opening balances AS WELL is not necessary and this will create DOUBLE opening balances if you do.

			Entering open balances may be done for selected accounts. It is quicker to startup and saves work of entering all the opening items one by one. But then the opening items are not visible in NEOSYS and all you can see is one lump sum as a single outstanding item representing all outstanding items. In this case their statements will show a single outstanding item representing the total of the outstanding items. It is more common to do this for suppliers/payables than clients/receivables since you do not have to send suppliers statements of outstanding items like you do for clients.

			Alternatively, you can Enter Outstanding items as follows

	#Enter 1 Batch of Outstanding invoices in the Invoices Journal per account (either Client or Supplier) with many outstanding items / invoices and as you post it with the contra a/c as the Suspense A/c (ZZZ999). Press F9 to make sure the balance / batch totals match the balance of the A/c. Eg. Client XYZ balance is 100,000 AED and the batch total should be 100,000 AED.		#Enter 1 Batch of Outstanding invoices in the Invoices Journal per account (either Client or Supplier) with many outstanding items / invoices and as you post it with the contra a/c as the Suspense A/c (ZZZ999). Press F9 to make sure the balance / batch totals match the balance of the A/c. Eg. Client XYZ balance is 100,000 AED and the batch total should be 100,000 AED.
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	Date each entry as per the original invoice/document but the journal period should be the period before the opening period. For example, if you are starting the new financial year on 1/2008, then the period will be 12/2007. This is done so that invoices dont show as movements in the current financial period and show as Opening items. Refer to [http://userwiki.neosys.com/index.php/Entering_Opening_Balances_%26_Items#What_are_Opening_Items.3F Opening Items entry ]		Date each entry as per the original invoice/document but the journal period should be the period before the opening period. For example, if you are starting the new financial year on 1/2008, then the period will be 12/2007. This is done so that invoices dont show as movements in the current financial period and show as Opening items. Refer to [http://userwiki.neosys.com/index.php/Entering_Opening_Balances_%26_Items#What_are_Opening_Items.3F Opening Items entry ]

	Alternatively, to save the work of entering all the opening items one by one you can treat receivable/payable accounts as balance forward ledgers. It this case their statements will show a single outstanding item representing the total of the outstanding items. It is more common to do this for suppliers/payables than clients/receivables since you do not have to send suppliers statements of outstanding items like you do for clients.

	=== Posting of foreign currency items and accounts ===		=== Posting of foreign currency items and accounts ===

Priyanka: /* Subsidiary Open Item Ledgers */

2015-03-08T12:54:49Z

Subsidiary Open Item Ledgers

← Older revision		Revision as of 12:54, 8 March 2015
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	#Enter 1 Batch of Outstanding invoices in the Invoices Journal per account (either Client or Supplier) with many outstanding items / invoices and as you post it with the contra a/c as the Suspense A/c (ZZZ999). Press F9 to make sure the balance / batch totals match the balance of the A/c. Eg. Client XYZ balance is 100,000 AED and the batch total should be 100,000 AED.		#Enter 1 Batch of Outstanding invoices in the Invoices Journal per account (either Client or Supplier) with many outstanding items / invoices and as you post it with the contra a/c as the Suspense A/c (ZZZ999). Press F9 to make sure the balance / batch totals match the balance of the A/c. Eg. Client XYZ balance is 100,000 AED and the batch total should be 100,000 AED.
	#Enter 1 Batch of outstanding invoices in the Invoices Journal for all the smaller/remaining a/c's with relatively few items.		#Enter 1 Batch of outstanding invoices in the Invoices Journal for all the smaller/remaining a/c's with relatively few items. No check is possible unless all accounts for one ledger are in one batch then Press F9 to check if total matches open balance of the ledger.
	#Enter batches of receipts and/or payments for any unallocated payments and receipts.		#Enter batches of receipts and/or payments for any unallocated payments and receipts.

Priyanka: /* Subsidiary Open Item Ledgers */

2015-03-08T12:35:02Z

Subsidiary Open Item Ledgers

← Older revision		Revision as of 12:35, 8 March 2015
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	#Enter 1 Batch of Outstanding invoices in the Invoices Journal per account (either Client or Supplier) with many outstanding items / invoices and as you post it with the contra a/c as the Suspense A/c (ZZZ999). Press F9 to make sure the balance / batch totals match the balance of the A/c. Eg. Client XYZ balance is 100,000 AED and the batch total should be 100,000 AED.		#Enter 1 Batch of Outstanding invoices in the Invoices Journal per account (either Client or Supplier) with many outstanding items / invoices and as you post it with the contra a/c as the Suspense A/c (ZZZ999). Press F9 to make sure the balance / batch totals match the balance of the A/c. Eg. Client XYZ balance is 100,000 AED and the batch total should be 100,000 AED.
	#Enter 1 Batch of outstanding invoices in the Invoices Journal for all the smaller/remaining a/c's with relatively few items~~. Press F9 to make sure the balance / batch totals match the balance of the A/c~~.		#Enter 1 Batch of outstanding invoices in the Invoices Journal for all the smaller/remaining a/c's with relatively few items.
	#Enter batches of receipts and/or payments for any unallocated payments and receipts.		#Enter batches of receipts and/or payments for any unallocated payments and receipts.

Priyanka: /* Subsidiary Open Item Ledgers */

2015-03-08T12:34:40Z

Subsidiary Open Item Ledgers

← Older revision		Revision as of 12:34, 8 March 2015
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	Enter Outstanding items as follows		Enter Outstanding items as follows

	#Enter 1 Batch of Outstanding invoices in the Invoices Journal per account (either Client or Supplier) with many outstanding items / invoices and as you post it with the contra a/c as the Suspense A/c (ZZZ999). ~~You~~ make sure the balance / batch totals match the balance of the A/c. Eg. Client XYZ balance is 100,000 AED and the batch total should be 100,000 AED.		#Enter 1 Batch of Outstanding invoices in the Invoices Journal per account (either Client or Supplier) with many outstanding items / invoices and as you post it with the contra a/c as the Suspense A/c (ZZZ999). Press F9 to make sure the balance / batch totals match the balance of the A/c. Eg. Client XYZ balance is 100,000 AED and the batch total should be 100,000 AED.
	#Enter 1 Batch of outstanding invoices in the Invoices Journal for all the smaller/remaining a/c's with relatively few items.		#Enter 1 Batch of outstanding invoices in the Invoices Journal for all the smaller/remaining a/c's with relatively few items. Press F9 to make sure the balance / batch totals match the balance of the A/c.
	#Enter batches of receipts and/or payments for any unallocated payments and receipts.		#Enter batches of receipts and/or payments for any unallocated payments and receipts.

Priyanka: /* How to enter Opening Balances */

2015-03-08T12:28:23Z

How to enter Opening Balances

← Older revision		Revision as of 12:28, 8 March 2015
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	# The last line of the journal voucher "closes" the balance of the journal to the Suspense Account which usually is ZZZ999 or 999. You can check that the last line agrees with the total balance of the ledger before posting to ensure that no mistakes have been made.		# The last line of the journal voucher "closes" the balance of the journal to the Suspense Account which usually is ZZZ999 or 999. You can check that the last line agrees with the total balance of the ledger before posting to ensure that no mistakes have been made.
	# Repeat the above steps for each ledger that has to be opened.		# Repeat the above steps for each ledger that has to be opened.


			[[Image:openingbalances.jpg]]


	There are some special considerations for posting the opening balances of the General Ledger:		There are some special considerations for posting the opening balances of the General Ledger:
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	# Replace the a/c number of any control a/c with that of the Suspense Account. NEOSYS will not allow you to post the control a/c balances directly because the control a/c balance will be posted automatically from the postings to the accounts in its subsidiary ledger.		# Replace the a/c number of any control a/c with that of the Suspense Account. NEOSYS will not allow you to post the control a/c balances directly because the control a/c balance will be posted automatically from the postings to the accounts in its subsidiary ledger.
	# There is no closing line since the total of the General Ledger A/c is zero if it properly balances.		# There is no closing line since the total of the General Ledger A/c is zero if it properly balances.

	~~[[Image:openingbalances.jpg]]~~

	== What are Opening Items? ==		== What are Opening Items? ==

Priyanka at 11:31, 8 March 2015

2015-03-08T11:31:08Z

← Older revision		Revision as of 11:31, 8 March 2015
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	#Enter batches of receipts and/or payments for any unallocated payments and receipts.		#Enter batches of receipts and/or payments for any unallocated payments and receipts.

	Date each entry as per the original invoice/document but the journal period should be the period before the opening period. For example, if you are starting the new financial year on 1/2008, then the period will be 12/2007. This is done so that invoices dont show as movements in the current financial period and show as Opening items. Refer to [http://userwiki.neosys.com/index.php/Entering_Opening_Balances_%26_Items#What_are_Opening_Items.3F ~~Open Item enteries~~ ]		Date each entry as per the original invoice/document but the journal period should be the period before the opening period. For example, if you are starting the new financial year on 1/2008, then the period will be 12/2007. This is done so that invoices dont show as movements in the current financial period and show as Opening items. Refer to [http://userwiki.neosys.com/index.php/Entering_Opening_Balances_%26_Items#What_are_Opening_Items.3F Opening Items entry ]

	Alternatively, to save the work of entering all the opening items one by one you can treat receivable/payable accounts as balance forward ledgers. It this case their statements will show a single outstanding item representing the total of the outstanding items. It is more common to do this for suppliers/payables than clients/receivables since you do not have to send suppliers statements of outstanding items like you do for clients.		Alternatively, to save the work of entering all the opening items one by one you can treat receivable/payable accounts as balance forward ledgers. It this case their statements will show a single outstanding item representing the total of the outstanding items. It is more common to do this for suppliers/payables than clients/receivables since you do not have to send suppliers statements of outstanding items like you do for clients.

← Older revision		Revision as of 09:33, 25 February 2018
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	== ~~Procedure for companies to move to NEOSYS accounting system~~ ==
			== Entering Opening Balances & Items ==

	STEPS DO NOT NEED TO BE CARRIED OUT IN ORDER OR ALL AT THE SAME TIME OR BEFORE YOU START ENTERING CURRENT TRANSACTIONS		STEPS DO NOT NEED TO BE CARRIED OUT IN ORDER OR ALL AT THE SAME TIME OR BEFORE YOU START ENTERING CURRENT TRANSACTIONS
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	Accountants should give foreign currency and base currency statements. Sometimes accountants give the Balance sheet in base currency which is at a particular exchange rate, but the accounts in subsidiary ledgers show in foreign currency (eg clients) and the exchange rate is only know to them. Hence this causes a problem as NEOSYS might value at its own rates and the control a/c will not tally with the subsidiary ledger. Every account in the subsidiary ledgers should total up and match the Control A/c in the GL.		Accountants should give foreign currency and base currency statements. Sometimes accountants give the Balance sheet in base currency which is at a particular exchange rate, but the accounts in subsidiary ledgers show in foreign currency (eg clients) and the exchange rate is only know to them. Hence this causes a problem as NEOSYS might value at its own rates and the control a/c will not tally with the subsidiary ledger. Every account in the subsidiary ledgers should total up and match the Control A/c in the GL.

	== What are Opening Balances? ==		=== What are Opening Balances? ===
	Opening Balances are the balance of accounts at the start of an accounting period. When we have new clients moving from their existing accounting system to the NEOSYS accounting system, they need to enter Opening Balances of various heads of the General Ledger which are actually the Closing Balances of the previous accounting system.		Opening Balances are the balance of accounts at the start of an accounting period. When we have new clients moving from their existing accounting system to the NEOSYS accounting system, they need to enter Opening Balances of various heads of the General Ledger which are actually the Closing Balances of the previous accounting system.

	For subsequent years, NEOSYS automatically carries the closing balances forward to become the opening balances of the following years - except for P&L accounts which are closed to the Retained Earning account.		For subsequent years, NEOSYS automatically carries the closing balances forward to become the opening balances of the following years - except for P&L accounts which are closed to the Retained Earning account.

	=== How to enter Opening Balances ===		==== How to enter Opening Balances ====

	To enter the Opening Balances, go to Finance > Journal > Journal Entry and select the Opening Balances Journal and follow the below:		To enter the Opening Balances, go to Finance > Journal > Journal Entry and select the Opening Balances Journal and follow the below:
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	# There is no closing line since the total of the General Ledger A/c is zero if it properly balances.		# There is no closing line since the total of the General Ledger A/c is zero if it properly balances.

	== What are Opening Items? ==		=== What are Opening Items? ===
	When companies move to any new accounting system (referred to as NEOSYS), they usually prefer to enter the outstanding (unpoad) items of the Trade Creditors & Trade Debtors, rather than entering opening balances. Opening items are unpaid invoices and perhaps a few unallocated receipts or payments.		When companies move to any new accounting system (referred to as NEOSYS), they usually prefer to enter the outstanding (unpoad) items of the Trade Creditors & Trade Debtors, rather than entering opening balances. Opening items are unpaid invoices and perhaps a few unallocated receipts or payments.

	Opening items is a NEOSYS term that corresponds to the "opening balances" of open items accounts in normal financial terminology.		Opening items is a NEOSYS term that corresponds to the "opening balances" of open items accounts in normal financial terminology.

	=== How to enter Opening Items? ===		==== How to enter Opening Items? ====

	To enter the Opening Items, go to Finance > Journal > Journal Entry and select the respective Journal i.e. to enter Client opening items select Media Invoices/Invoices or for Supplier opening items select Purchase Invoices/Media Purchase Invoices and follow the below:		To enter the Opening Items, go to Finance > Journal > Journal Entry and select the respective Journal i.e. to enter Client opening items select Media Invoices/Invoices or for Supplier opening items select Purchase Invoices/Media Purchase Invoices and follow the below: