The Historical Balancing account is an internally calculated account. This indicates that the general ledger opening balance debits and credits are out of balance by the figure in that account.
After implementing Jim2, it is important to ensure:
▪all general ledger opening balances from the previous system have been entered into Jim2
▪the opening balance debtors and creditors match the general ledger
▪the balance in the 3-999 Historical Balancing account has been brought to zero.
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This must be resolved as soon as possible, as the first financial year in Jim2 cannot be closed until it is resolved. It is not possible to journal to the Historical Balancing account. It can only be cleared by correcting the general ledger account opening balances. A report can be printed to show what opening balances have been entered so far, to check that they are correct, or identify if any are missing. |
On the ribbon, go to Accounts > General Ledger, select the Chart of Accounts – Opening Balance report, and print the report.
Please note that the stock on hand opening balances are generated from the values on the opening balance purchase orders.
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The individual stock on hand 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 general ledger account, and it should be the total owed from the previous system. It must match the Calculated Opening Balance, ensuring the variance is zero. This must also be resolved before the first financial year can be closed.
On the ribbon, go to Accounts > General Ledger and select the account. Click Edit and enter the amount into the Opening Balance field.
A report can be printed to show the individual opening balances for debtors and creditors. On the ribbon, go to Management > Reports > System to print these reports.
If any adjustments have been made to the individual debtor or creditor opening balance entries and have not changed the opening balance figure to reflect the change, there may be a variance.
If any opening balance issues have been identified and corrected and there is still a value in the 3-9999 Historical Balancing account, a decision must be made as to where to enter this variance value as an opening balance. Open and edit general ledger accounts as previously outlined.
In most cases, any remaining variance will be due to a difference in stock value between the previous system and the actual count and value that is brought across into Jim2.
It is best to seek advice from the company's external accountant before proceeding further. They may advise 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 & Loss result, and clear when the first financial year is closed in Jim2.
For further assistance please contact support@happen.biz, or call 02 9570 4696.
Further information
Suggested End Of Month Procedures
Enter Government Support Payments
Purchase a Capital Asset Under Finance
Record Debtors/Creditors Contras
ATO Reportable Sub-Contractor Payments
Share Utility Expenses with other Businesses
Understanding Debits and Credits