Accounts Payable
Starting Balances
Accounts Payable Starting Balances
Manager's Accounts Payable Instructions
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 the day you begin using Manager, sometimes referred to as the start date:
- You have available credit unrelated to purchase invoices, or
- You owe money because of unpaid purchase invoices.
Before you can enter any type of starting balance, your suppliers themselves must be created.
Enter available credit
Available credit in the context of a supplier refers to any amount your supplier owes you on your 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.
Note
The available credit must be entered in the currency selected for the supplier.
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. 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.
Manager uses these pre-start purchase invoices to establish starting balances in Accounts payable. They will not affect profit and loss statements during the current or later financial periods. If an invoice has been partially paid on the day you begin using Manager, only its remaining balance due should be entered.
When finished, click Create to save the invoice. Repeat for all open purchase invoices preceding your start date.
Note
Carefully consider inventory items on pre-start invoices. If items on a purchase invoice were already received under the prior accounting system, subtract them from starting balances for those inventory items, because the pre-start purchase invoice tells Manager they must be received again.
Carefully consider inventory items on pre-start invoices. If items on a purchase invoice were already received under the prior accounting system, subtract them from starting balances for those inventory items, because the pre-start purchase invoice tells Manager they must be received again.
Quick Start Accounts Payable Instructions
If you are using the accrual basis of accounting, I've provided an alternate and quicker way for entering your unpaid sales invoices.
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 the day you begin using Manager, sometimes referred to as the start date:
- You have available credit unrelated to purchase invoices, or
- You owe money because of unpaid purchase invoices.
Before you can enter any type of starting balance, your suppliers themselves must be created.
Enter available credit
Available credit in the context of a supplier refers to any amount your supplier owes you on your 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.
Note
The available credit must be entered in the currency selected for the supplier.
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
Enter a starting-balance invoice in a similar manner as a regular purchase invoice. 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.
Manager uses these pre-start purchase invoices to establish starting balances in Accounts payable. They will not affect profit and loss statements during the current or later financial periods. If an invoice has been partially paid on the day you begin using Manager, only its remaining balance due should be entered.
When finished, click Create to save the invoice. Repeat for all open purchase invoices preceding your start date.
Setup Non-inventory item
If not already enabled, Enable the Settings for Non-inventory items
Add a Non-inventory item named Invoice Total
Click On New Non-inventory item
Enter Name - Invoice Total
Enter
When Sold
When PurchasedAccount - Sales
Account - Sales
If you click on Non-inventory items a listing appears with all your non-inventory items. In our example we only have one.
Example
In our simple example, we'll be entering one starting unpaid supplier invoice assuming our start date is June 1 and our beginning unpaid invoice is dated in May.
The below Summary Balance Sheet includes the Accounts Payable account with no balances entered.
Our invoice is Invoice Numbe 135 in the amount of 500 for Supplier1 dated May 17 and terms of Net 30.
Select the Purchases Invoice Tab and enter a New Invoice
- Enter Supplier1
- Enter Invoice Date of May 17
- Enter Terms of Net 30
- Select the Item and select the Non-inventory item Invoice Total
- The assigned Sales account Sales displays
- Enter the amount of 500
Select Create
The Summary Balance Sheet now displays an Accounts Payable Balance of 500.
If you click on the Purchases Invoices tab, the purchases invoice listing displays the invoice entered and the total amount of 500.
Continue to do this for all your supplier unpaid invoices.