31-10-2011 11:39 AM
Back in June, we created a new file and exported all Debtor and Creditor invoices from the old file and uploaded to the new file (opened it in 2011 year so invoices could be entered with their correct date.) We then entered the opening balances for each account, did an initial bank reconciliation and since then have been using the file for the 11/12 year.
It now appears that the Trade Debtor and Trade Creditor accounts in the balance sheet are double what they should be. Is this because the import function was used instead of the easy setup assistant, historical sales/purchases?
Is there a journal entry to correct this? I am not keen on deleting all the invoices to re-enter then through the set up assistant, as there are 100+ invoices!
Thanks for your help
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31-10-2011 12:28 PM
The reason that the debtor/creditor account balances are double what they should be is because all the imported invoices/bills created a balance entry in debtors/creditors, and the opening balance entries did the same.
My suggestion would be to use a copy of the backup file before the rollover was done (hope you have one of those), and remove the opening balances you entered (either delete the journal or zero out the opening balances screen). What's left is the effect of the two imports, so print a trial balance at 30th June, with account numbers.
Take all balance sheet figures, and the NET profit figure only (print a profit report to get that), and then in the live file enter an opposite journal dated 1st July for those amounts, except in the case of net profit, allocate it to your retained earnings account. Then your balance sheet should be right.
(By an opposite journal, I mean enter a credit for each debit, and a debit for each credit)
31-10-2011 01:09 PM
Thanks for your quick reply Mike! Do you mind if I ask a couple of clarifying questions just to confirm?
We haven't rolled MYOB at EOY, I have two files, the one that contains transactions up to 30/6/11 which has not been used since that date and the new one which commenced 1/7/11. When you say 'before the rollover was done", do you mean a version of the new file before any new transactions were entered, or just to ensure that I still have access to change 30/6/11 transactions?
Yes, when I delete the opening balances for Debtors/Creditors in the new file they balance to the old file. I've also noticed that the historical balancing account changes by the net of these amounts when the opening balances are deleted.
I should then post a journal dated 1/7/11 in the new file that posts a 'reverse' journal of the amounts held in Debtors/Creditors, to the retained earnings (or historical balancing?) account.
Apologies if I haven't got it correct. I'm quite new to MYOB!
31-10-2011 03:24 PM - edited 31-10-2011 03:25 PM
Hello Emily, yes I refer to the new file only. It's good you haven't started a new year in this file yet.
I'm going to assume that you entered the opening balances to the new file using the Set-up, Balances, Account Opening balances screen, and that your conversion month was July 2010. (If my assumptions are wrong, let me know).
If that's the case, print a General Ledger summary, including zero balances, for the data range 1/7/10 to 30/6/11. The debit and credit columns of this report should show you the effect of your invoice/bill import, and you should enter a journal dated 30/06/11 which is the opposite of those movements.
To print the GL summary, go to Reports, Index to reports, Accounts tab and follow the notes on the attached picture. (Select the report, and then choose Customise at the foot of the window to get to the next two screens).
31-10-2011 05:46 PM
Also note, since you are able to do an adjusting journal at 30/06/11, it should be done for all the movements as per the GL report, ie ignore my previous comment about making one entry for net profit to retained earnings.
03-11-2011 12:54 PM
Thank you Mike, your advice is excellent!
At least I know now how to set up new MYOB files and will (hopefully) avoid the pitfalls next time 'round.
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