If you have not been using VT Transaction+ since your business started, you will have some opening account balances to enter.
When entering opening balances, it is more convenient (but not absolutely necessary) to set the current financial year to the last year covered by the previous system, then revert it to the actual current year once the opening balances are in. This is done by clicking on the current year caption on the application status bar. If necessary, you can begin entering day-to-day transactions before you have entered opening balances.
Enter a full trial balance from another system
You will need a trial balance report from your previous system dated on last day of the financial year.
Enter opening customer and supplier balances as outstanding invoices
Having entered/imported total trade debtors and trade creditors balances, it is advisable to then re-enter the balances as outstanding invoice amounts in accounts in the Customers and Suppliers ledgers. You will need reports of outstanding sales invoices and outstanding purchase invoices from your old system, dated on the last day of the previous financial year.
Note: If you are entering an opening foreign currency customer or supplier balance, see Foreign currency opening balances below.
Customer balances
1.If you have already entered/imported the total trade debtors balance to the Trade debtors account in the Debtors ledger, delete this entry as the balance will be accounted for as a result of the steps below.
2.If you are operating the VAT cash accounting scheme, check that the VAT cash accounting box is ticked in the Set Up > VAT dialog, otherwise leave this unticked.
3.In the Customers ledger, enter the outstanding sales invoices that make up the trade debtors balance:
a)Create the customer accounts as shown in Creating customers and suppliers.
b)Click on the sales invoice (SIN) button on the main toolbar:
i.Select the customer from the Customer accounts list.
ii.Enter the Date as the invoice date (which should be dated before the last day of the previous financial year).
iii.In the Total field, enter the gross invoice amount if you are on standard VAT accounting, or the net invoice amount if you operate the VAT cash accounting scheme.
iv.Only enter the VAT if you are operate the VAT cash accounting scheme. This amount is automatically posted to the VAT - Deferred output account.
v.In the Analysis ledger and Analysis account fields, select Creditors and Opening balances contra.
vi.Click on Save.
4.Repeat step 3. for each outstanding invoice.
Note: If you are on VAT cash accounting and have already entered/imported the total deferred output VAT* balance to the VAT - Deferred output account, delete this entry as the balance will be accounted for as a result of step 3 b) iv and step 4.
*Deferred output VAT is VAT due on sales invoices that has not yet been declared to HMRC because payment has not yet been received - see VAT holding accounts if on VAT Cash Accounting.
Supplier balances
The same principles apply to the trade creditors balance in a trial balance. Follow the same steps as for customer balances above, but enter outstanding purchase invoices (using the PIN button) in accounts in the Suppliers ledger.
Enter an opening bank balance with outstanding payments and receipts
Having entered/imported a bank balance, it is advisable to then re-enter the balance as the bank statement balance and enter uncleared payments and receipts, in order to generate a bank reconciliation in VT Transaction+ . You will need a closing bank reconciliation from your old system.
Note: If you are entering an opening foreign currency bank balance, see Foreign currency opening balances below.
1.If you have already entered/imported the opening bank balance, delete this entry as the balance will be accounted for as a result of the steps below.
2.Re-enter the opening bank balance as the closing balance per the bank statement:
a)Using the REC (or PAY if overdrawn) button, select the bank account from the Bank Accounts list.
b)Enter the date as the last day of the financial year covered by the previous system.
c)In the Total field, enter the bank statement balance.
d)In the Analysis Ledger and Analysis Account, select Creditors and Opening balances contra.
3.Enter each outstanding receipt and payment from your bank reconciliation:
a)Using the REC (or PAY) button, select the bank account from the Bank Accounts list.
b)Enter the date as the last day of the financial year covered by the previous system.
c)In the Total field, enter the amount of the receipt or payment.
d)In Analysis ledger and Analysis account, select Creditors and Opening balances contra.
The sum of entries from steps 2. and 3. should equal the opening bank balance on your trial balance.
Opening bank reconciliation
Having entered the opening bank balance with outstanding payment and receipts as shown above, you can then generate an opening bank reconciliation:
1.Click on the Reconcile the bank account button from the main toolbar:
2.Select the transaction for the opening bank balance (which should be the bank statement balance from step 2. above) so that it is highlighted in blue.
3.Click on the Mark selected entries as reconciled (§) button:
4.Enter the bank statement number where indicated and click OK.
Foreign currency opening balances
If you are entering opening customer, supplier or bank balances in foreign currencies, follow the same steps in Enter opening customer and supplier balances as outstanding invoices and Enter an opening bank balance with outstanding payments and receipts, but with the following differences:
1.Before entering any balances, set the exchange rate(s) to the closing year-end exchange rate(s) used in your other system.
2.When entering the balances, select the foreign currency from the currency drop-down in the transaction entry screen.
3.Enter the amounts as the foreign currency amounts, not the base currency amounts.
4.Create a new account in the Creditors ledger called Opening balances contra - [Name of foreign currency], e.g. Opening balances contra - Euro. Select this account as the Analysis account. Do not select the normal Opening balances contra account as this is will have been set to the base currency.
The opening balance amounts will translate to the base currency at the rate entered in step 1.
