Starting balances exist only if you are transferring an existing business to Manager from another accounting system. In that case, you may need to set starting balances for customers who already have credit balances or owe you money.
Before you can enter a starting balance for any account, go to the Settings tab and set a Start Date:
Once your start date is set, you can enter two types of starting balances for your customers:
If your customer has a credit balance that can be applied to future invoices, go to the Customers tab:
Click the Edit button for the customer with a credit balance:
Starting balance checkbox and enter the available credit amount:
Click Update to save the changes. Repeat for all customers with credit balances.
If your customer has unpaid sales invoices, you cannot enter the starting balance as a single figure. Manager requires you to enter specific unpaid invoices, fully completed. This is so Manager can generate accurate cash-basis reports. Even if you don’t adopt cash-basis accounting, it is important to enter all unpaid sales invoices so you can issue detailed customer statements.
Starting balance invoices are entered the same way as regular sales invoices. Go to the Sales Invoices tab and click the New Sales Invoice button::
Complete all details, especially the
Issue date field. Only sales invoices with issue dates before your start date will be treated as starting balance invoices. When finished, click Create to save the invoice. You will notice that amounts in the
Invoice total and
Balance due columns under the Sales Invoices tab are equal:
This is usually the correct scenario, unless the invoice entered had already been partially paid by the customer as of the start date. In that case, click on the amount under the
Balance due column, where you will see the starting balance with an amount of zero. Click Edit next to the starting balance transaction:
Enter the amount previously paid by the customer toward this invoice:
Click Update to save the change. When you go back to the Sales Invoices tab, you will see the
Balance due of the partially paid invoice has decreased by the amount paid:
Repeat for all sales invoices predating your start date.
After you enter all starting balances, go to theReports tab and click onStarting Balances:
Ensure your starting balances for Accounts receivable and all customers (visible by drilling down on the blue Accounts receivable balance) match the closing balance sheet from the previous accounting system.