How To: Enter Opening Balances

There are two types of opening balances that may be required when you first setup the software:

1.	Client Opening Balance: This would be the opening balance (Arrears or Credit) for each client.

2.	General Ledger Accounts: This would be the current balances for each General Ledger Account. The most common opening balance required is the Bank Balance.

To create opening balances, you will be required to create a Journal Entry.

If required, please ask your accountant for assistance if you require more detailed information about the purpose of Journal Entries or what accounts you should be using.

How To Enter Client Opening Balances:

If the client is in arrears and they owe you money, the easiest method to create the opening balance is to create a one time charge for the amount they owe.

Note: The amount you charge will be recognized as income based upon the transaction date. If you are using the cash basis accounting method, the date is not as important since the income will only be recognized at the time the client pays the arrears.

To create a "Credit Balance" for the client, you will be required to create a Journal Entry or "Adjustment" on the client account. Here are the steps to create a client opening credit balance.

1.	Open the client file

2.	Create an Adjustment (Journal Entry)

3.	Debit the appropriate account (Usually Rental Income) and the Credit the Accounts Receivable account.

4.	This will create the credit balance.

How To Enter General Ledger Opening Balances:

Entering the opening balances within the General Ledger requires the creation of one Journal Entry that will debit and credit a number of accounts, or to selectively enter individual journal entries. You may want to consult with your accountant before entering the opening balances.

General Ledger Journal entries are created at the Property Level since each property maintains their own financial information. This means every journal entry must specify the property and account to keep the books balanced.

The General Ledger Journal entries are available from within the Financial Section of the program.

If required, please ask your accountant for assistance if you require more detailed information about the purpose of Journal Entries or what accounts you should be using.

1.	Select the Property from the property tree

2.	Click on the Financial Button from the toolbar

3.	Create Journal Entry

4.	Debit and Credit the appropriate accounts. The transaction debit and credit totals must be the same before you can apply the journal entry. This is to ensure the transaction is balanced.

5.	This will create the journal entry.