What to do if I haven't cleared the automatically generated trial balance figures?

After entering your customer and supplier opening balances, you should clear the automatically generated trial balance before entering the opening trial balance from your accountant. If you didn't do this, you should follow the steps in this article to ensure your Nominal balances are correct.

To check which Nominal balances were updated by the opening balances

The affected Nominal balances depend on the method used to enter the customer and supplier opening balances.

When you entered your customer and supplier opening balances, one of the following methods was used:

• You are using the Standard VAT scheme and the O/B button in the Customer or Supplier Record was used. This means that the nominal codes affected are the Debtors Control Account, the Creditors Control Account and Suspense.

• You are using the VAT Cash Accounting scheme, the O/B button on the Customer or Supplier Record was used, and the values were split into net and VAT amounts. This means that the nominal codes affected are the Debtors Control Account, the Creditors Control Account, the Sales Tax Control Account, the Purchase Tax Control Account, and Suspense Account.

• The customer and supplier opening balances were entered as batched invoices or credits using different nominal codes. For example, sales nominal codes and purchase nominal codes either with or without VAT amounts. This means that all of the relevant sales or purchase nominal codes, the Debtors Control Account and Creditors Control Account and possibly the Sales Tax Control Account and the Purchase Tax Control Account are affected.

To run the Trial Balance report for the Brought Forward period

Once you establish which Nominal balances were affected by the opening balances, you then need to establish the values posted to these accounts by the opening balances. When you run the Trial Balance report for the Brought Forward period, you are viewing the nominal codes with a balance made up of transactions dated before the start of your current financial year. This should be the values posted by the opening balances.

1. Nominal codes > Trial balance.
2. Select the required output, for example, Printer > Run.
3. Period drop-down list > choose the required Trial Balance period, for example, Brought Forward > OK.
4. Complete the Print window as required > OK.

This report displays any nominal codes with a balance made up of transactions dated before the start of your current financial year. This should be the opening balances on the accounts as detailed in the previous section.

To reverse the Brought Forward balances from the Trial Balance report

When you know the Brought Forward balances on the affected nominal codes, you must reverse them, by posting a journal entry.

Example

NOTE: In this example we are reversing the following trial balance.

N/C	Name	Debit	Credit
1100	Debtors Control Account	34515.00
2100	Creditors Control Account		9664.00
9998	Suspense Account		24851.00
	Totals	34515.00	34515.00

 

1. Nominal codes > Journal entry.
2. Enter a reference and date for the journal, then enter the relevant information to reverse the brought forward figures from the Trial Balance report.
   
   

   NOTE: You must use a date from your previous accounting period, for example, the last day of your previous financial year.

   Example

   N/C	Details	T/C	Debit	Credit
   1110	Reverse O/Bal	T9		34515.00
   2100	Reverse O/Bal	T9	9664.00
   9998	Reverse O/Bal	T9	24851.00

3. Save > Close.

You have now cleared the trial balance that was created when you entered the customer and supplier opening balances. You can now enter the Nominal opening trial balance you received from your accountant. For further information about this, please refer to the following section.

To enter the new opening trial balance figures

When you have reversed the Brought Forward figures, you are then ready to enter the correct opening trial balance figures.

NOTE: This procedure explains how to enter the opening trial balance figures through the Nominal Ledger Journals option. If required, you can use the OB button on the relevant Nominal Record to enter your opening balances. For further information about this, please press F1 to open the Help system.

1. Nominal codes > Journal entry.
2. Enter a reference and date, then enter the information to record the nominal opening trial balance.
   

   NOTE: You must use a date from your previous accounting period, for example, the last day of your previous financial year.

   Example

   N/C	Details	T/C	Debit	Credit
   1110	Debtors O/Bal	T9	34515.00
   2100	Creditors O/Bal	T9		9664.00
   1200	Bank Account O/Bal	T9	3514.00
   3200	Reserves O/Bal	T9		28365.00

   
   

   NOTE: The figure in the Balance box, must be zero before you can save the journal.

3. Save > Close.

You have now entered the opening trial balance figures, and can now continue to use Sage Accounts.