® automatically records the following transactions to the Opening Balance Equity account:. The ending bank statement balance transaction when a new bank account is created in the EasyStep Interview. Opening balances for other Balance Sheet accounts created in the Add New Account dialog box. Opening balances entered when New Customers or Vendors are set up. Inventory total value balances entered in the New Item dialog. Bank reconciliation adjustments for QuickBooks versions 2005 or earlier.
To clear up the Undeposited Funds account, follow these steps: If you are completing these changes as part of a dated review; from the menu bar, select Accountant, Client Data Review and launch Client Data Review. You will then select the Clear Up Undeposited Funds task in the Accounts Receivable group.
Other common transactions that a user might assign to this account include:. Accrual basis opening accounts payable transactions as of the start date. Accrual basis opening accounts receivable transactions as of the start date. Uncleared bank checks or deposits (accrual or cash basis) as of the start date. Common Errors. Users do not know what to do with the Open Balance Equity account. Users enter an opening balance when setting up a new account, vendor, customer or inventory item.
Users create transactions that post to the Open Balance Equity account. Symptoms. Balance remains in Open Balance Equity account long after initial start up of the data file. Open Balance Equity account has a balance. Reviewing Balances in Open Balance Equity Account To review the transactions in Opening Balance Equity account a report of the transactions is first created. To create a report of the transactions in the Opening Balance Equity account:.
Click Reports Company & Financial and select the Balance Sheet Standard report. Without adjusting the date, view the Equity section of the report to see whether a balance exists in the account. The Opening Balance Equity account value might be equal to the prior year Retained Earnings. So, if a balance in the Opening Balance Equity account exists and if the balance is equal to the prior year’s Retained Earnings, the Opening Balance Equity can be closed into Retained Earnings – as discussed in the next section.
If, however, a balance remains on the Balance Sheet for Opening Balance Equity, you can review the individual transactions by creating the following report:. Click Reports Custom Transaction Detail Report. The Modify Report dialog appears, with the Display tab selected. Select the Report Date Range to be reviewed. Choose All from the Dates drop-down menu. In the Columns section of the Display tab, click to place a check mark next to those data fields to be included on the report, or click to remove the check mark from those not to be included on the report. Be sure to include Type near the top of the list.
Click the Filters tab. In the Choose Filter pane, select Account; from the Account drop-down menu select the Opening Balance Equity account, as shown in the image below. Optionally, for the Sort By drop-down list, select Type. This option groups the report by type of transaction, which might make reviewing the source of the transactions easier. With the report sorted by type of transaction, determine whether errors in entries were made is the next step.
One of the most important things to know about the Opening Balance Equity account is that when a file is completely and successfully set up, no balances should remain in the Opening Balance Equity account. Closing Opening Balance Equity to Retained Earnings The Opening Balance Equity account should have a zero balance once a file is set up correctly. A correctly set up QuickBooks file assumes the following:.
You are not converting the data from Quicken, Peachtree, Microsoft Small Business Accounting or Office Accounting. Each of these products has an automated conversion tool available free from Intuit that eliminates the need to make startup transactions if the data is converted and not just lists. The company had transactions prior to the QuickBooks start date (i.e., it is not a new business). If it is a new business with no prior transactions, then simply begin entering typical QuickBooks transactions with no need for unusual start up entries. If there were transactions prior to the QuickBooks start date, and each of the unpaid customer invoices, unpaid vendor bills, and uncleared bank transactions have been entered and dated prior to the QuickBooks start date.
The trial balance has been entered one day before the QuickBooks start date. (i.e., if the fiscal year starts 1/1 then the trial balance is dated 12/31 of the previous year). If the above stipulations are true, then the Opening Balance Equity is expected to equal the Retained Earnings balance from the accountant’s financials or from the prior software. If it does not agree, continue to review the data to identify the errors. If it does agree, then make the final entry in the startup process to close out the balance in Opening Balance Equity to Retained Earnings.
There is no built-in function to transfer transactions from one QuickBooks File to another one (alternatively: ), but there are several tools available in the market that facilitate this process, among them are the following:. & Exporter 6.0 by Bay State Consulting.
Data Transfer Utility by Karl Irving CPA (FEATURED HERE) At some point, I will compare and contrast them four, but the time being i’ll show you Data Transfer Utility (DTU) because it is very simple to use. First you open up the QuickBooks file from which you want to bring transactions from (Source), then load DTU which will look like this: Note that DTU is based on Microsoft Access, so you must have it installed in order to use it. If you do not have Access, you can download a FREE Access Runtime Engine from the Microsoft website. Step 1, click on ADD/CHANGE for the source file, you will get the familiar window asking you to grant Access to DTU to get into the QB file: Step 2, click on CHANGE under “Select Type of Data to Export”, which will take you to this screen: In the bottom right, you will see: “Pass 1, Pass 2, Pass 3, and Pass 4”, because it is recommended that you import certain items in order and 4 passes are recommended to transfer an ENTIRE QuickBooks File. For example: Pass 1 transfers all the Lists, Pass 2 transfers all the transactions except Deposits, Bill Payments and Customer Deposits, Pass 3 will bring only Bill Payments and Customer Deposits, and Pass 4 Brings Deposits. Why this way? This is to prevent errors from linked transactions.
You Must first have an invoice, then payment, and lastly a deposits; if it comes in out of order it breaks. Hope that makes sense to you. Anyway, I will do a simple example and just bring BILLS and BILL PAYMENTS. This means that I need 3 passes. First, Pass 1: Vendor List.
Click on Pass 1, Clear All, then just choose the Vendors and Vendor Type Click on Close Form, Click on ALL DATES and Then on EXPORT DATA. Then, switch over to the Destination QuickBooks File, then in DTU, go to OPEN DESTINATION COMP, it will ask you to grant access to the File in QuickBooks, and after you agree go back to DTU and click on IMPORT DATA You may get error messages about setting up a company e-email address, turning on sales tax, and multiple units of measure. If that is the case, go ahead and follow the instructions to make it work. After the import is complete, you can click on 6c.
VIEW IMPORT REPORT to inspect how it went, and see if any errors occurred in the process. Perfect the on to Pass 2: Bills. In DTU click on CLOSE CONNECTION, and in QuickBooks Switch back to the Source Company File in, and back in DTU go to CHANGE under Select Data to Export, Click on Pass 2, Clear All, then just choose just the bills. Then you click on Close Form, and click on EXPORT DATA. Note: Every Bill, Item Receipt, and Vendor Credit from the same vendor needs to have a different reference number! Karl makes a that automatically adds numbers to blank ref number bills.
Anyway, now we are ready to import the Bills, so we repeat the same steps from before, switch back our QB company file to the destination file, back in DTU click on OPEN DESTINATION COMP and then IMPORT DATA Assuming that your Chart of Accounts and the Items list contains the exact ones being used here, then you would be OK. If not, go back to PASS 1, and make sure the Chart of Accounts and Item List is included in that import. Same goes if you are job costing with Customer names or Using Classes. This should all be part of that PASS 1 we were discussing earlier, if not there will be ERRORS during the importing.
At the end, you should see a report with no errors, like this: And Lastly, Pass 3: Bill Payment Checks and BillPayment Credit Card Charges: Follow the same steps in export and import the data. And you should be finished.
Now, you can pull a transaction detail report on both company files to make sure 100% adds up. If numbers are OFF, then these could have been an error message during the import/export process and it was ignored.
So, what do think of this utility? Cons: The interface is a but hard navigate for first timers working with, there are tons of error checking which makes the user feel that the process takes forever. Pros:The interface is consistent with other, so its not too difficult to get used to. The error checking on this program is phenomenal, there is nothing more frustrating than importing 99% of the data.
Because almost always you have to start all over again anyway even for a susceptibly “measly” 1% variance. All and all, I like this tool very much, I have used if it for several projects.
It has a $169 price tag which is one of the least expensive in the market for that it does. Karl, has working demos of almost all his tools at, so you are welcome to test it yourself.Hector Garcia Advanced Certified QuickBooks ProAdvisor [email protected].
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