Change Accounting Set-up

Hiya all,

I have just begun working with an organization that only uses the General Journal for ALL transactions. In addition, they use MS Word for client invoices / receipts and Excel to keep a record of AP / AR.  Simply can do all of these functions; however their previous bookkeeper did not have the experience.

What I want to do is revise their accounting set up to open the Payables and Receivables modules, set up the linked accounts, create the invoices / receipts, etc.  However, since I have not yet had to make significant changes to any of my clients accounting records I am a bit leary to proceed until I know how it will affect everything.

There is currently a balance outstanding in the A/R account. I know that I can set up the modules and begin entering the A/R transactions from this point forward; however, I am unsure if when I enter payments received, if I will have to enter the ones that are currently outstanding through the general journal posting to the main account until they are all cleared.  I have the Accountant's Edition so I am able to post to the main accounts. 

Does anyone have experience with this challenge? Your feedback would be greatly appreciated.

If you require further information, please don't hesitate to contact me at [email protected]

Looking forward to a response!!

Heather

  • FormerMember
    FormerMember

    Hi Heather:   Looks like you have your work cut out for you setting everything up.  The balance in the A/R needs to be set up in Simply first before you start entering any new invoices through your Sales module to A/R.  You could just enter the total owing from each customer into their account through the Sales module so that when you receive payments on these amounts owing you will have the amounts in A/R to enter against.    Or if you want to track each invoice that these customers owe, then you will have to enter all outstanding invoices from your list.        How have they been entering these into the Simply books up 'til now??  If they have been doing a General Journal Entry to post a debit to A/R and a credit to Sales, then you will have to reverse the total out of A/R and Sales before you start entering individually through the A/R module.  If you do this then you will not have a conflict between the "before" amounts as you will have reversed them and set them up properly through the A/R module.    Does this sound like it will answer your question?    If not, post further questions and I will answer again.      Good Luck, Rita

  • Hiya Rita,

    Thanks very much for your prompt response!!  Yes, all transactions have been entered through the General Journal by debiting A/R and crediting corresponding revenue account.

    Your suggestion sounds like it will work quite nicely .. So to ensure I have this correct, I would perform an adjusting entry to zero out the A/R account, set up the modules, then enter the current outstanding A/Rs in the sales module?  Is there a quick way to zero this account out in one transaction? There are 12 different revenue accounts that these invoices have been posted to and 37 outstanding invoices, all entered through general journal!!

    Just typing the above info, I know that it won't be possible to do this in one transaction .. I better get a bigger coffee pot!!Tongue Tied

    Heather

  • I just looked through the outstanding invoices, and it won't be as daunting a task as I originally anticipated. I can consolidate all the invoices and perform the adjusting entry to all revenue accounts to zero out the A/R in one transaction, then drill the invoices into the sales journal.

    I am quite glad that my clients provide me with some challenges as it keeps my mind active and my resource manuals not quite as dusty!!

    thanks for talking this through with me Rita, very much appreciated.

    Heather