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 suppliers to whom you already owe money or with whom you have credit balances.
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 suppliers:
If you have a credit balance with a supplier that is not related to a specific purchase invoice but can be applied to future purchase invoices, go to the Suppliers tab:
Click Edit for the supplier with whom you have a credit balance:
Starting balance checkbox, then enter the available credit amount:
Click Update to save the change. The available supplier credit shows as a negative amount under the
Accounts payable column in the Suppliers tab:
Repeat for all suppliers with whom you have credit balances.
If you have unpaid purchase invoices with a supplier, you cannot enter the starting balance as a single figure. Manager requires you to enter the specific unpaid purchase invoices, fully completed. This is so Manager can assign future payments to proper purchase invoices, generate accurate cash-basis reports, and produce detailed supplier statements.
Enter starting balance purchase invoices the same way as regular purchase invoices. Go to the Purchase Invoices tab and click New Purchase Invoice:
Complete all details, especially the
Issue date field. Only purchase invoices with issue dates before your start date will be treated as starting balance purchase invoices. When finished, click Create to save the purchase invoice. You will notice that amounts in the
Invoice total and
Balance due columns under the Purchase Invoices tab are equal:
This is usually the correct scenario, unless you have already partially paid the purchase invoice as of your start date. In that case, click on the amount under the
Balance due column. You will see the starting balance with an amount of zero. Click Edit next to the starting balance transaction:
Enter the amount you previously paid the supplier toward this purchase invoice:
Click Update to save the change. When you go back to the Purchase Invoices tab, you will see the
Balance of the partially paid purchase invoice has decreased by the amount already paid:
Repeat for all open purchase invoices preceding your start date.
After you enter all starting balances, go to theReports tab and click on Starting Balances:
Ensure your starting balances for Accounts payable and all suppliers (visible by drilling down on the blue Accounts payable balance) match the balance sheet from the previous accounting system.