The Jim2 Historical Balancing account is an internally calculated account. It tells us that the general ledger opening balance debits and credits are out of balance by the figure in that account.
After implementing Jim2 it's important that you ensure:
•all general ledger opening balances from your previous system have been entered into Jim2;
•the opening balance debtors and creditors match the general ledger; and
•the balance in the 3-999 Historical Balancing account has been brought to zero, using this process.
•You must resolve this as soon as possible, as you will not be able to close the first financial year in Jim2 until it is resolved.
•You cannot journal to the Historical Balancing account. It can only be cleared by correcting the GL account opening balances.
•You can print a report to show you what opening balances have been entered so far to check that they are correct or identify if any are missing.
Go to Accounts > General Ledger, select the Chart of Accounts – Opening Balance report, and print it.
Please note that the stock on hand opening balances are generated from the values on the opening balance purchase orders. The individual SOH account opening balances must never be edited.
The 1-XXXX Trade Debtors (accounts receivable) and 2-XXXX Trade Creditors (accounts payable) accounts have calculated Opening Balance fields which are made up of the individual invoices and credits that were brought across into Jim2.
The Trade Debtors and Trade Creditors accounts also have Opening Balance fields. The opening balance is entered manually on the GL account and it should be the total owed from your previous system. It must match the Calculated Opening Balance, ensuring the variance is zero. This must also be resolved before you can close the first financial year.
Go to Accounts > General Ledger and select the account. Click Edit and enter the amount into the Opening Balance field.
You can print a report to show the individual opening balances for debtors and creditors. Go to Management > Reports > System to print these reports.
If you have made any adjustments to the individual debtor or creditor opening balance entries, and not changed the opening balance figure to reflect the change, you may have a variance.
If you have identified any opening balance issues and corrected them, and there is still a value in the 3-9999 Historical Balancing account, then you have to decide where to enter this variance value as an opening balance. Open and edit GL Account as previously outlined.
In most cases any remaining variance will be due to a difference in stock value between your previous system and the actual count and value that is brought across into Jim2.
It is best to seek advice from your external accountant before proceeding further. They may advise you to enter this against a new 5-XXXX COGS account and call it Jim2 changeover variance or something similar. The balance will then form part of the profit and loss result, and clear when you close the first financial year in Jim2.
If you require further assistance please contact firstname.lastname@example.org, or call 02 9570 4696.