If you have converted a Set of Books from TurboCASH3 to this version, all the transactions and balances will automatically be included.
If you have started to use TurboCASH4, and you already have balances in a hand system or any other computerised accounting system, you need to enter the balances from your previous accounting system.
For the purposes of this tutorial, the following examples will be used to illustrate the opening balances:
CAPTURING OPENING BALANCES General Ledger : The Trial Balance:
Control Accounts:
Individual balances needs to be taken on separately for the following Control Accounts: •Debtor's Control (G700). •Creditor's Control (G900). •Stock Control (G750)
Control Accounts in the General Ledger must always be in balance with the total of the sub-ledgers. Debtor's Ledger : The Balances of the Individual Debtor Accounts:
Debtor's Ledger:
Individual balances may be taken on for the following:
•Outstanding Amount. •Each Period Separately.
Each period separately will allow you to use the Ageing facility. Creditor's Ledger : The Balances of the Individual Creditor Accounts:
Creditor's Ledger: Individual balances may be taken on for the following:
•Outstanding Amount. •Each Period Separately.
Each period separately will allow you to use the Ageing facility. Stock Ledger: The Balances (Quantities and Cost Prices) of the Individual Stock Items:
Stock Ledger:
Only the total value (cost price of stock) is entered as the opening balance of your stock items.
The opening balances for your trading stock items (Default stock type) must be entered for each individual stock item - you cannot simply enter the total from the trial balance. You need to inform the program of the quantities on hand and the cost prices for each stock item. See Chapter K.3 of MODULE K.
TurboCASH will calculate the value of each stock item by multiplying the quantities on hand by the cost price. After all the quantities and cost prices of your stock items are entered, the total value of all stock items should be equal to the control figure (stock control account), as per your financial statements.
H.3.1- Enter General Ledger Opening Balances
To enter Opening Balances from your Trial Balance:1. Click on the Batch Entry icon. (You may also press the F2 key). The Batch Type screen will be displayed.
2. Select the General Jnl and click on the Open button. The General Journal screen will be displayed.
3. Enter the Alias (Batch Name) in the Change Alias field on the Topbar of the Batch Entry screen. In this example we enter ''OpeningBalances'' to indicate that the Opening Balances was entered in this General Journal batch.
The alias option allows you to identify a batch by a unique name. You will be able to select the batch by alias or batch name if you need to reverse the posted batch or import a posted batch.
4. Click on the F10:Setup icon to set your batch up. The Options for this batch screen is displayed:
The first time you enter transactions in a General Journal, you should set it up according to your requirements. This should be done for each journal, but only need to be done once, unless your requirements change.
5. Set up the General Journal as follows:
Contra Account: The relevant contra account for the batch (i.e. the account to which TurboCASH will create a balancing entry).
Click on the Lookup button and select the suspense account, i.e. “999 - Suspense Account”.Contra Account per
Line:
If you tick this field, TurboCASH will ask to allocate a contra account for each transaction. As this will be a batch in which you wish to enter both debits and credits DO NOT tick this field. Reverse Contra:
Leave blank.
No Tax:
Select this option, as no VAT/GST/Sales Tax (OutputVAT/GST/Sales Tax and Input VAT/GST/Sales Tax) is applicable to the opening balance transactions.
Increment Reference
Number:
If you tick this field, TurboCASH will increment the reference number by 1 on each subsequent line. DO NOT tick this option. Inclusive mode:
If you tick this field, TurboCASH will treat all amounts as inclusiveof VAT/GST/Sales Tax. Tick this option. Consolidate
Balancing:
If you tick this field, TurboCASH will consolidate all balancing entries into 1 entry, if you have used an account more than once. As for the take-on of opening balances, it is NOT necessary to tick this option, since you will be entering both debits and credits from your Trial Balance and will not be asking TurboCASH to balance the batch.Enter General Ledger Opening Balances Repeat Details:
If you tick this field, TurboCASH will repeat the detail entered in theDescription column on each subsequent line. Tick this option to repeat the details for the next transactions.
Amount Entry:
Set to “Allow both”, since you will enter amounts in both the debit and credit column.6. Click on the Advanced tab.
7. Leave all fields blank, and make sure that the default option, Account Lookup Type, is set to “All” for this exercise.
8. Click on the OK button.
9. Capture the first transaction as follows: Reference: JNL1
Date: 2011/02/28
Description: Opening Balance Take-on Account: 505 (for Capital)
Amount: 11500.00 CR
Use the same reference number, date and details for all the entries. Tax
Since No Tax (VAT/GST/Sales Tax) is applicable, to the opening balance transactions in this tutorial, we have selected to hide the Tax column in the Setup Options.
10. Repeat as above for capturing the rest of the Trial Balance. After capturing the Trial Balance, the transactions should reflect as follows:
If you are not selling trading stock:
When entering the opening balance for the Stock Control Account (Account number G750-000), TurboCASH, you may use the Suspense Account (Account number G999- 000) for the purposes of this tutorial .
When entering the opening balance for the Debtor's Control Account (Account number G700-000), TurboCASH will not allow you to select the Debtors Control Account. The same applies to the Creditor's Control Account (Account number G900-000). The reason for this is that you cannot post any transactions to the Debtor's Control Account in the General Ledger. You need to select the individual Debtor accounts in the Debtor's Ledger, to take on each individual Debtor's opening balance. When posting the transactions for the opening balances in the General Journal, the Debtor's Control Account in the General Ledger will automatically be updated with the total of all the individual transactions posted to the Debtor's Ledger.
It is not necessary to "balance" your batch, as your Trial Balance should already be in balance.
You will note that there is an amount indicating the difference between the debit and credit entries at the end of the Debit Amount column.
This amount (and the Reference Total at the bottom of the screen) should reflect a zero after entering all your transactions.
11. Click on the F8:List icon; or press the F8 key on your keyboard; to generate a list of the transactions in the batch. The batch list is displayed as follows:
It is recommended that the source document (e.g. trial balance or balance sheet and income statement, etc.) be attached to this List of the transactions (take-on of opening balances) and that it be retained for record and audit purposes.
You may also click on the icon (Save the report as a metafile report), and save it as a PDF - compressed file for archiving purposes.
12. Click on the F6:Post icon; or press the F6 key on your keyboard. TurboCASH will ask you to confirm that you are posting transactions to the previous financial year.
13. Click on the Yes button, or press the Enter key to continue. TurboCASH will ask you to confirm that you are posting transactions to the retained earnings account.
14. Click on the Yes button, or press the Enter key to continue posting. TurboCASH will now post all the transactions to the General Ledger.
Confirmation: Post to Last Year
If you click on the No button, the transactions will not be posted. Confirmation: Retained Earnings
Capture the Debtor Opening Balances
H.3.2- Capture the Debtor Opening Balances
To enter Opening Balances for your Debtor Accounts:
1. Click on the Batch Entry icon. (You may also press the F2 key). The Batch Type screen will be displayed.
2. Select the General Jnl and click on the Open button. The General Journal screen will be displayed.
3. Enter the Alias (Batch Name) in the Change Alias field on the Topbar of the Batch Entry screen. In this example we enter ''DOpeningBalances'' to indicate that the Debtor Opening Balances was entered in this General Journal batch.
4. Click on the F10:Setup icon to set your batch up. The Options for this batch screen will be displayed. The settings are basically the same as for the Opening Balances of the General Ledger account. Change the Batch Settings as follows:
• Standard tab – Select the Contra Account for Opening Balances – Debtors (D000- 004) and Set Amount Entry to Debit.
• Advanced tab – Set The Account Lookup Type and Contra Account Lookup Type both to Debtor.
5. Once setup, click on the OK button. 6. Enter the following transactions:
The Opening Balances – Debtor account should reflect the total of all Debtor accounts (in the Debtor's Control account). You only need to list (select) the individual debtor accounts and enter their balances.
You may enter only the total outstanding balance (i.e. 1800.00 as per this example) as at 28 February 2011 for each debtor account (2 entries). If you wish to optimise the ageing facility in TurboCASH, you may enter the balances for each debtor account as at the end of each period, e.g. 28 February 2011 – 1100.00, 31 January 2011 – 400.00 and 31 December 2010 – 300.00. 7. After entering the individual balances, for each period, the transactions should be
8. Click on the F5: Balance icon or press the F5 key. TurboCASH will generate balancing entries for each period.
9. Overtype the “BALANCING ENTRY – General Jnl” with Debtor Opening Balances – Feb2011, Jan2011 and Dec2010 respectively.
You may click on the F9: Process icon or press the F9 key and select the Totals per Period option. This will list the totals of all the Debit entries and all the Credit entries for each period. The difference should be zero.
10. Click on the F8:List icon; or press the F8 key on your keyboard; to generate a list of the transactions in the batch. The batch list is displayed as follows:
It is recommended that the source document (e.g. trial balance or balance sheet and income statement, etc.) be attached to this List of the transactions (take-on of opening balances) and that it be retained for record and audit purposes.
You may also click on the icon (Save the report as a metafile report), and save it as a PDF - compressed file for archiving purposes.
11. Click on the F6: Post icon or press the F6 key on your keyboard. TurboCASH will post the entries for each period to the ledger. The Opening Balances – Debtor account should have a zero balance after balances were debited to the individual Debtor accounts.
The Debtor Aging report for 28 February 2011 (Reports Debtor Age Analysis→ → menu) will display the totals for each period as follows:
Capture the Debtor Opening Balances
H.3.3- Capture the Creditor Opening Balances
To enter Opening Balances for your Creditor Accounts:1. Click on the Batch Entry icon. (You may also press the F2 key). The Batch Type screen will be displayed.
2. Select the General Jnl and click on the Open button. The General Journal screen will be displayed.
3. Enter the Alias (Batch Name) in the Change Alias field on the Topbar of the Batch Entry screen. In this example we enter ''COpeningBalances'' to indicate that the Creditor Opening Balances was entered in this General Journal batch.
4. Click on the F10:Setup icon to set your batch up. The Options for this batch screen will be displayed. The settings are basically the same as for the Opening Balances of the General Ledger account. Change the Batch Settings as follows:
• Standard tab – Select the Contra Account for Opening Balances – Creditors (C000- 003) and Set Amount Entry to Credit.
• Advanced tab – Set The Account Lookup Type and Contra Account Lookup Type both to Creditor.
5. Once setup, click on the OK button. 6. Enter the following transactions:
The Opening Balances – Creditor account should reflect the total of all Creditor accounts (in the Creditor's Control account). You only need to list (select) the individual creditor accounts and enter their balances.
You may enter only the total outstanding balance (i.e. 1000.00 as per this example) as at 28 February 2011 for each creditor account (2 entries).
If you wish to optimise the ageing facility in TurboCASH, you may enter the balances for each creditor account as at the end of each period, e.g. 28 February 2011 – 500.00, 31 January 2011 – 300.00 and 31 December 2010 – 200.00.
7. After entering the individual balances, for each period, the transactions should be displayed as follows:
8. Click on the F5: Balance icon or press the F5 key. TurboCASH will generate balancing entries for each period.
9. Overtype the “BALANCING ENTRY – General Journal” with Creditor Opening Balances – Feb2011, Jan2011 and Dec2010 respectively.
You may click on the F9: Process icon or press the F9 key and select the Totals per Period option. This will list the totals of all the Debit entries and all the Credit entries for each period. The difference should be zero.
10. Click on the F8:List icon; or press the F8 key on your keyboard; to generate a list of the transactions in the batch. The batch list is displayed as follows:
It is recommended that the source document (e.g. trial balance or balance sheet and income statement, etc.) be attached to this List of the transactions (take-on of opening balances) and that it be retained for record and audit purposes.
You may also click on the icon (Save the report as a metafile report), and save it as a PDF - compressed file for archiving purposes.
11. Click on the F6: Post icon or press the F6 key on your keyboard. TurboCASH will post the entries for each period to the ledger. The Opening Balances – Creditor account should have a zero balance after balances were credited to the individual Creditor accounts.
Capture the Creditor Opening Balances
The Creditor Ageing report for 28 February 2011 (Reports Creditor Age Analysis→ → menu) will display the totals for each period as follows: