Set starting balances for suppliers

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 with or to whom, on your start date:

  • You have available credit unrelated to purchase invoices, or
  • You owe money because of unpaid purchase invoices.

General procedures for entering starting balances are found in another Guide. Read it first. Before you can enter any type of starting balance, your suppliers themselves must be created. Follow these procedures to enter them.

Enter available credit

Available credit in the context of a supplier refers to any amount your supplier owes you on our start date. This credit could be the result of past debit notes, settlement of contract disputes, or promised refunds. If you have a credit balance that can be applied to future purchase invoices, go to the Suppliers tab and click Edit beside the supplier’s name.

Enter the Starting balance of the available credit:

Click Update.

The available credit must be entered in the currency selected for the supplier.

Repeat for all suppliers with whom you have credit balances.

Enter unpaid purchase invoices

You cannot enter the starting balance for unpaid purchase invoices 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 a starting-balance invoice in the same manner as a regular purchase invoice. See this Guide for purchase invoice instructions. The Issue date field will, by default, be prefilled with the current date. Edit this to match the original issue date from your old accounting system. Only purchase invoices with issue dates before your start date will be treated as starting balance invoices.

Manager uses these pre-start-date purchase invoices only to establish starting balances. It ignores them for financial reporting during the current or later financial periods. And it ignores any inventory item quantities.

If an invoice has been partially paid, only its remaining balance due should be entered. (Since quantities are ignored, any line item can be adjusted so the balance due equals the remaining balance from the old accounting system.)

When finished, click Create to save the invoice. Repeat for all open purchase invoices preceding your start date.

Starting balance purchase invoices affect only the monetary balance of suppliers’ subaccounts in Accounts payable. They do not affect starting balances of inventory items. Those should be set to match the physical count on the start date. See this Guide for more information.

Starting balance purchase invoices also do not affect starting balances of tax liability accounts. If line items on the purchase invoice are taxable, the starting balances of relevant tax liability accounts must be set independently by editing the tax liability accounts’ starting balances directly in the Settings tab, under Chart of Accounts. Match the closing balances in those accounts from the prior accounting system.

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