Changing The Beginning Balance

[Svenska]

I'm following up on the same topic question and answers as posted in April because I am and need to be sure I'm not compounding errors. Do I understand correctly that I can correct the beginning bank account balance without starting over?

Our treasurer and I have been setting up PC11 based on reports taken from our legacy system (QuickBooks) beginning in January of this year. The incorrect beginning bank account information was entered during setup and the treasurer unfortunately posted all input for the beginning month of January so reports, reconciliation, etc. are off. The month of January is NOT closed. I can’t use the backup made just prior to posting January transactions because the treasurer has entered – but NOT posted – information for Feb up through the end of this month (April). A lot of input work has already gone into the set up process. I am validating input for Feb thru Apr but I don’t want to post until Jan reads correctly.

I really don’t want to have to delete the program and start all over! In this situation, am I correctly understanding that I can make a journal entry debiting the bank account for the difference (the beginning figure is less than it is supposed to be) and crediting an equity account under Unrestricted Net Assets?

[JohnDMeyers]

It sounds like a "yes" to me.

Especially because you haven't closed January, yet.

I would date the transaction 1/1/10 and post it in January. The amount would be the difference, as you have specified, and you have the accounts correct as well.

[EPBC2334]

Hi, I have the same issue. I restarted my accounting in January. In March I realized that the beginning balance for one of our accounts is $100 more than it should be. To correct this I believe I should cr the savings account, but what Net Assests account should I db? Is it the unrestricted net assests account that all my accounts are set to close to or do I setup another net assests account if so what do I call it?

Thank you.

[JohnDMeyers]

You should debit the unrestricted net asset account.

As you noted, most of your income and expense accounts close to unrestricted net assets. After you set the beginning balance, the activities in these income and expense accounts will add or subtract from the beginning balance giving you a yearly updated amount.

In business, it's called "net income". In non-profits, it's called "fund balance" or "unrestricted net assets".

[faithupc]

I have 2 accounts that were set up as primary accounts and they should be sub accounts. The problem is that the balance in the accounts is actually already part of the balance of 2 other accounts. How can I delete these balances without affecting any other accounts. Basically, my total is 2,000 off but if I do a journal entry, it will throw another account off. Is there any way to remove these amounts? By the way, they are asset accounts

[JohnDMeyers]

If you already have the $2000 in other accounts, then you can use the equity account as the "other" account in your transactions.

In the physical world (as opposed to the accounting world) what you are saying is that your "Beginning balance is off because you made a double entry to begin with"

So, if you need to DB the account in question, the CR the equity account. If you need to CR the account in question, then DB the equity account.

[AWELCtreas]

I have a similar question which I am certain can be answered quite simply. New user of PC+ here setting up the Acctg module. Prior to this, another treasurer set up Quickbooks and did not track the building or any fixed assets or the liabilities in QB. I intend to track those items in PC+ so that everything can be tracked in one place. I have located the acquisition cost of the building but I am waiting for someone to provide me with the cost of the land so that I can separate the building and the land for depreciation purposes. I have the other information that I need to set up the COA with the opening balances. My question is this: if I go ahead and enter my best estimate as to the opening balances for the building and the land and then proceed to complete the process and the remaining accounts which all have exact balances, can I later change the opening balances of the building and land accounts as long as nothing has been posted?

[JohnDMeyers]

Sure, you can estimate now, and correct it later:

-----------
Enter estimated data:
DB 01-1810-000 Building asset $160,000
CR 01-3110-000 unrestricted assets $160,000

DB 01-1710-000 Furniture and Equipment $45,000
CR 01-3110-000 unrestricted assets $45,000

CR 01-1790-000 Depreciation Reserve $7,500 (this number will be negative on your balance sheet)
DB 01-3110-000 Depreciation Expense $7,500
----------


Correct data later
Enter estimated data:
DB 01-1810-000 Building asset $11,133 (change to CR to decrease asset)
CR 01-3110-000 unrestricted assets $11,133 (change to DB to decrease asset)

DB 01-1710-000 Furniture and Equipment $1,209 (change to CR to decrease asset)
CR 01-3110-000 unrestricted assets $1,209 (change to DB to decrease asset)

CR 01-1790-000 Depreciation Reserve $75 (change to DB to decrease depreciation amt)
DB 01-3110-000 Depreciation Expense $75 (change to CR to decrease depreciation amt)

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[Matt]

I assume that the beginning balances you are wanting to input are as of January 1, 2012. If so, what I would recommend is that when going through the Accounting Setup tell the system that the first month and year you want to begin posting transactions is December 2011 rather than January 2012. This will allow the month of December 2011 to remain open so that you can input additional entries to correct the January 1 beginning balances if needed.