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VT Transaction+

Navigation: Entering transactions (including opening balances)

Opening balances

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If you have not been using VT Transaction+ since your business started, you will have some opening account balances to enter.

If you have not already done so, you will need to carry out the steps outlined in Quick start before entering opening balances.

When entering opening balances, it is more convenient (but not absolutely necessary) to set the current financial year to the year last covered by the previous system, then reverting it back 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.

The options for entering opening balances are:

Entering a full trial balance from another system

Entering detailed opening balances:

Bank balances

Customer and supplier balances

Other account balances

Opening balances in a foreign currency

Entering a full trial balance from another system

You can easily enter the opening balances of all accounts on your trial balance in one batch, by importing a trial balance.

However if you need to:

show outstanding transactions on the opening bank reconciliation, or;  

show individual transactions that make up customer or supplier balances;

then you need to enter detailed opening balances as described below.

Entering detailed opening balances

Bank balances

To enter an opening bank balance:

1.Click on the receipt (REC) button on the main toolbar (or the payment (PAY) button if the account is overdrawn).

2.In the receipt (PAY) dialog, enter the bank balance from your trial balance. Do not enter any VAT.

3.Enter the date as the last day of the financial year covered by the previous system.

4.In the Analysis ledger box, select Creditors.

(If Creditors is not included in the chart of accounts you are using, select Other Creditors, or Liabilities).

5.In the Analysis account box, select Opening balances contra.

(If Opening balances contra is not included in the chart of accounts you are using, you need to create it in the Creditors ledger by selecting Set Up > Accounts > All > New)

6.Click on Save to save the transaction.

To enter an opening bank balance with reconciling items:

If you have a bank reconciliation from a previous system, carry out steps 1. to 6. above, but in step 2, enter the bank balance from your bank statement, not the trial balance, then repeat steps 1. to 6. above for each outstanding item in the reconciliation. The reconciling items can be dated on or before the last day of the financial year covered by the previous accounting system.

Customer and supplier balances

If you want the customer and suppliers ledgers to show individual outstanding invoices:

1.If you are operating the VAT cash accounting scheme, check that the Cash accounting box is ticked in the Set Up > VAT dialog, otherwise leave this unticked.

2.Click on the sales invoice (SIN) button on the main toolbar (or the purchase invoice (PIN) button for supplier invoices).

3.In the invoice dialog, enter the date and the amount of the invoice. Only enter the VAT if you are operating the VAT cash accounting scheme.

4.In the Analysis ledger box, select Creditors.

(If Creditors is not included in the chart of accounts you are using, select Other Creditors, or Liabilities)

5.In the Analysis account box, select Opening balances contra.

(If Opening balances contra is not included in the chart of accounts you are using, you need to create it in the Creditors ledger by selecting Set Up > Accounts > All > New)

6.Click on Save to save the transaction.

7.Repeat steps 1. to 6. for each outstanding invoice.

Other account balances

These can be entered as a journal using the JRN transaction button on the toolbar, or by importing a journal. The journal should have the following double entries:

For accounts with a debit balance:

Debit/Credit

Ledger

Analysis Account

Date

Amount

Debit

Name of ledger

Name of account

the last day of the financial year covered by the previous system

Opening balance

Credit

Creditors

Opening balances contra

the last day of the financial year covered by the previous system

Opening balance

For accounts with a credit balance:

Debit/Credit

Ledger

Analysis Account

Date

Amount

Debit

Creditors

Opening balances contra

the last day of the financial year covered by the previous system

Opening balance

Credit

Name of ledger

Name of account

the last day of the financial year covered by the previous system

Opening balance

This needs to be done for all other accounts in your trial balance, including the P&L accounts (the system will then automatically transfer the P&L account balances on the P&L, to the P&L brought forward balance sheet account, on the first day of the current financial year).

If Creditors is not included in the chart of accounts you are using, select Other Creditors, or Liabilities.

If Opening balances contra is not included in the chart of accounts you are using, you need to create it in the Creditors ledger by selecting Set Up > Accounts > All > New.

Opening balances in a foreign currency

If you have closing balances for monetary asset or liability accounts in a foreign currency, accounting standards require that these balances are translated to the base currency at the exchange rate on the balance sheet date (as explained in point b) of Multi-currency quick start: Accounting requirements).

Assuming this has been done in your old system, you will need to set up the same exchange rate in VT Transaction+ and enter the opening balances in the foreign currency amount, so that they translate back to the same GBP amount as in the closing trial balance from your old system, as follows:

1.Set up the foreign currency by selecting Set Up > Currencies, Departments and Lists > Currencies > New. In Rate to base currency, enter the same closing rate for the balance sheet date used in your previous system. Click on No ledgers are currently analysed by the above list. Change... and tick Bank, Customers and Suppliers (plus any other ledgers where you have monetary asset or liability balances in foreign currencies).

2.Set up a foreign currency bank account(s), if you have one, by selecting Set Up > Accounts > Bank > New.

3.Enter any foreign currency opening bank balance(s):

Using the REC (or PAY if overdrawn) transaction, select the foreign bank (created in step 2.) from the Bank Accounts list, and select the foreign currency from the Currency drop-down.

Enter the opening balance (foreign currency amount) in the Total field.

In the Analysis Ledger and Analysis Account, select Creditors and Opening Balances Contra respectively.

4.Enter any foreign currency opening customer balances:

Using the SIN transaction, select the foreign customer from the Customer Accounts list and select the foreign currency from the Currency drop-down.

Enter the opening balance (foreign currency amount) in the Total field.

In the Analysis Ledger and Analysis Account, select Creditors and Opening Balances Contra respectively.

5.Enter any foreign currency opening supplier balances:

Using the PIN transaction, select the foreign supplier from the Supplier Accounts list and select the foreign currency from the Currency drop-down.

Enter the opening balance (foreign currency amount) in the Total Field.

In the Analysis Ledger and Analysis Account, select Creditors and Opening Balances Contra respectively.

For further guidance on entering foreign currency transactions, see the Multi-currency accounting chapter.