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  #1  
Old 11-25-2004, 01:59 PM
Bill K. Bill K. is offline
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Question Opening Balance Equity Questions

I'm just setting up QB Pro for the first time with account balances from an existing company. All my Balance Sheet entries are reflected in the total of the Opening Balance Equity account EXCEPT the total for Accounts Receivable. Does anyone know what's going on with that and whether a correction is needed?

Also, there appears to be no capital account set up for YTD Profit & Loss, so I created one and put the existing balance there. But I'm wondering where on the balance sheet QuickBooks will post the cumulative Profit/Loss it calculates at each month-end, since there doesn't appear to be an account set up for that?

Thanks very much for your assistance.
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Old 11-25-2004, 02:04 PM
Joey Joey is offline
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You're not telling us how you set up the balance in the A/R or how you entered the other account balances. What kind of entity is this company for taxes? How did you enter the income and expense account balances? What version are you using?
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  #3  
Old 11-25-2004, 03:20 PM
Bill K. Bill K. is offline
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I'm using QB Pro 2004.

All balance sheet account balances were entered via Easy Step, with the A/R balance being a total of customer balances entered as part of that process. The business is a sole proprietorship.

Income statement accounts were set up during Easy Step, but there was no prompt for current balances, so that hasn't been handled yet. I imagine I'll enter balances via journal entries, sending the offsetting amount to Opening Balance Equity.

Will the software use those journal entries to determine and post the YTD profit/loss figure to a P/L capital account?

Thanks again.
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  #4  
Old 11-25-2004, 03:34 PM
Joey Joey is offline
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Yes, you need to delete the entry that you made to create that YTD Profit & Loss equity account. That is created automatically when you make the journal entry to debit the various income and expense accounts and credit the OBE account with the YTD totals. Once the income and expense accounts have a balance, the YTD will appear on the Balance Sheet in the equity section.
The best way to enter the balances in the A/R account is to create an invoice with the correct date for each open invoice in A/R using an Invoice Item called BegBal that's linked to the OBE account. Then when you Receive Payments, you actually have an invoice to post the payment to and you can see how long these people have owed you the money. If you've done this correctly, you should show no balance on a Cash Basis Balance Sheet and it will appear on the Accrual Basis report.
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Old 11-25-2004, 03:35 PM
Bill K. Bill K. is offline
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Join Date: Nov 2004
Location: Alabama
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I'm using QB Pro 2004.

All balance sheet account balances were entered via Easy Step, with the A/R balance being a total of customer balances entered as part of that process. The business is a sole proprietorship.

Income statement accounts were set up during Easy Step, but there was no prompt for current balances, so that hasn't been handled yet. I imagine I'll enter balances via journal entries, sending the offsetting amount to Opening Balance Equity.

Will the software use those journal entries to determine and post the YTD profit/loss figure to a P/L capital account?

Thanks again.
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  #6  
Old 11-25-2004, 03:54 PM
Bill K. Bill K. is offline
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Thanks, Joey.

So, it sounds like I should zero the A/R balances entered during Easy Step and recreate those amounts via invoice. Easy enough.

I'll also delete the balance in the newly created P/L account, though I'm not sure about how to delete the account itself yet. There must be a way, though.

I'm also wondering about the checking balance. I used figures from the last statement, which was prepared several days before my start date for QuickBooks, so I need to get that account to reflect the current balance as of the start date. I suppose that means entering all transactions that hadn't cleared as of the statement date. However, those transactions will affect P/L accounts, too, unless I send all offsetting amounts to OBE instead. Does that sound like the thing to do?

Thanks again.
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  #7  
Old 11-26-2004, 09:14 AM
Joey Joey is offline
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If that newly created Current Year Income/Loss was the one that the program created automatically, leave it alone. If it was an account you created, just go to Lists, Chart of Accounts, highlight the account and click on the lower bottom button and select Delete. (you can only delete accounts with no activity or entries)
Your beginning balance in the checking account should be the ending CLEARED balance from the last bank statement. Then you enter all the outstanding checks and any deposits with their correct dates and amounts coded to the OBE account. You wind up with your reconciled balance as of your start date. The o/s items will be there to check off when you reconcile also.
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  #8  
Old 11-27-2004, 07:37 PM
Bill K. Bill K. is offline
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I think I finally have the accounts set up. QB initially refused to permit me to edit or delete its opening A/R amounts, and I still don't understand why the beginning balances for A/R are the only entries that were not offset by an OBE entry. Very odd. Anyway, I eventually was able to void those transactions in the journal, rather than in the invoices themselves. Also in the journal, I recreated the balances using the BegBal item set up to credit OBE. For whatever reason, the transaction TYPE listed itself as STMTCHG instead of INV, and it gave me no choice in the matter (at least, not that I noticed.)
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