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:
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 must be created. Follow these procedures to enter them.
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 the Settings tab and click Starting Balances:
Click the blue balance for Accounts payable, then Edit beside the supplier’s name:
Currency(if a base currency is set).
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.
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.
To enter a starting-balance invoice, go the Settings tab and click Starting Balances:
Click the blue balance for Accounts payable, then the blue figure for
Unpaid invoices on the line for the supplier:
Click New Purchase Invoice:
Complete the unpaid purchase invoice in the same manner as a regular purchase invoice. See this Guide for purchase invoice instructions. The
Invoice date field will, by default, be prefilled with the date one day before your start date. Edit this to match the original invoice date from your old accounting system. Only purchase invoices with invoice dates before your start date will be treated as starting balance invoices. When finished, click Create to save the invoice.
Repeat for all open purchase invoices preceding your start date.
Now go to the Purchase Invoices tab. You will notice that amounts in the
Invoice total and
Balance due columns for the unpaid invoice(s) are equal:
This is usually the correct scenario, unless you have already partially paid a 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 in the
Opening balance field:
Click Update to save the change. When you go back to the Purchase Invoices tab, you will see the
Balance due of the partially paid purchase invoice has decreased by the amount already paid:
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.