Step by Step Instructions

The following is a logical pattern of cause and effect, which provides a systematic method of entering all beginning balances. We have chosen a Historical Date for this example; however, the same principles apply for entering beginning balances with a Future Date. At this point, system data bases, such as General Ledger chart of accounts, vendor and customer file and employee file, should already be set up. Also all options in System Setup Options should have been supplied with valid General Ledger accounts. Entries should not be made until these steps are done. (Exclude any part of the following which does not apply to an individual situation.)

Enter Data Through the Original Entry Programs:

1.Enter all open job budgets. This is done through the Budget Tab in the Job Setup screen. Include Jobs In Progress at the system start-up date as well as all jobs that have been started since system start-up date.

2.Set up fiscal periods in the General Ledger Fiscal Period Setup to reflect the system start-up date. It is strongly recommended that a fiscal period be included that is named "Beginning Balances" or "Start-Up" at the beginning and one named "Adjustments" or "Year-End" between each fiscal year.

3.Enter Accounts Payable invoices that were open as of the system start-up date through Accounts Payable Invoice Entry. (Paid invoices need only be entered if it is desired that these invoices show up on the vendor’s historical listings.)

4.Enter all historical (paid) subcontract invoices that relate to Open jobs with the paid by handcheck box checked. This is done through Accounts Payable Subcontract Invoice Entry. This will cause historical billing information to show up on the Subcontract Status and other Accounts Payable reports.

5.Enter subcontract invoices that were open as of the system start-up date.

6.Proof List, Backup, then Post all A/P invoices to the "Beginning Balances" fiscal period and verify against General Ledger for correctness of transactions.

7.Enter all Accounts Receivable Progress Billings that were open as of the start-up date. This is done through Accounts Receivable Progress Billing Entry.

8.Enter all Accounts Receivable Trade Invoices that were open as of the start-up date. This is done through Accounts Receivable Trade Invoice Entry.

9.Proof list, Backup, then Post Accounts Receivable invoices to the "Beginning Balances" fiscal period and verify against General Ledger for correctness of transactions.

10.Enter all employee Quarter-to-Date and Year-to-date totals through Employee Record Entry.

11.Enter all employee timesheets that were unpaid as of the system start-up date. This is done through Payroll Timesheet Entry.

12.Proof list, Backup, then Post Payroll to the "Beginning Balances" fiscal period and verify against the General Ledger for correctness of transactions. (Note: Blank paper may be used to perform actual check writing for previously processed checks until the point of current check writing is reached.)

Balance the Job Cost Figures Through General Ledger Transaction Entry:

At this point all information should have been entered using original entry programs. Now it is possible to select invoices to be paid, and run Accounts Payable and Payroll checks if necessary. The following will allow the operator to bring the Job Costs on line and enter final beginning balances to the General Ledger that were not affected by the Accounts Payable, Payroll, and Accounts Receivable postings.

13.Print a Job Costing Analysis Report for all jobs. Select the ‘Complete’ report format.

14.A listing is now available of all cost-to-date figures for each job and cost item. Since these figures came directly from the postings done in steps 1-12, they contain only the most recently accrued costs and probably differ from the actual known costs on each job and cost item as of the start-up date. Using this report, subtract the actual known costs from the current cost-to-date figures on the Job Cost Analysis Report. This can be done easily with a columnar pad or a spread sheet.

15.Using the difference column from step #14, create and enter a series of journal entries in General Ledger Transaction Entry to the Job and Cost Codes needing adjustments.

16.Print a Proof listing, Backup, then Post General Ledger transactions to the "Beginning Balances" fiscal period and verify for correctness.

17.Reprint the Job Cost Analysis Report from step #13. Verify that all current cost-to-date figures are equal to known job cost figures as of the start-up date. If balances do not match, return to step #13.

Make A Final Balance Of The General Ledger:

18.18.Print a General Ledger Working Trial Balance.

19.Using a Balance Sheet and Profit/Loss statement which is valid as of the system start-up date, make adjusting entries in the adjustments column of the Working Trial Balance. These entries will either increase or decrease the balances in the General Ledger to match the correct balances on the statement. Verify column totals and cross balance.

20.Using the adjustments columns of the Working Trial Balance in step #19, create and enter adjusting journal entries in the General Ledger Transaction Entry to the various accounts. Be sure to balance journal entries and entries that are made to the "Beginning Balances" fiscal period.

21.Print a Proof listing, Backup, then Post General Ledger transactions and verify for correctness.

22.Verify all journal to ledger balances. If balances do not match the statement, return to step #18.

Backup Your System Data

Make several backups. One backup should be kept in a safe place away from the office. It is a rarity, but occasionally a computer is stolen or a fire can destroy all work and effort. This backup and a similar yearly backup help to protect investments against such an eventuality. It is recommended that these backups be taken off the premises and stored in a safe place. (Please refer to the section on MAKING BACKUPS included in this guide.)

You Are On Your Way

The system is now ready for the entering of current data to bring records from the system start-up date up to the current date (if necessary) and continue processing on a live on-going basis.