When you create a new company in Pastel, you normally already have company data. You, therefore, need to capture your opening balances in Pastel.
You may have to enter opening balances in pastel for the general ledger, customers, suppliers, and inventory items. We recommend that you create the following accounts:
|Used for take - on for
At the completion of take-on, main account 999 should have a balance of zero, and the customers, suppliers, and inventory accounts should equal their control accounts on your old system.
When you take on general ledger balances in Pastel accounting, enter opening balances for the customer and supplier control account, and the inventory control account(s), into their 999 sub-accounts. Pastel moves the value from the take-on account into the relevant control account when you process customer, supplier, and inventory take-on.
Please note: You first need to capture general ledger opening balances.
General Ledger Opening Balances
Before you can carry out the following procedure you must set up your general ledger processing, you must create each general ledger account, and you must know how to enter transactions.
How to enter Opening balances into general ledger
- Obtain the required balances. If you wish to enter balances for each period, obtain trial balances for earlier periods as well. Note that you enter the balance in each period as a movement, so you may have to calculate the period figures from the trial balance.
- Create two additional balance sheet accounts called "Customer Take on Balances" and "Supplier Take on Balances". If you are taking on inventory balances, create a balance sheet account called "Inventory Take on Balances".
- Use the Process...Journals menu option to enter balances. Select a general ledger entry type.
- Key in the balances, per account and the period required. Make regulars back ups when you stop working if it is taking time.
- Enter the customer control account and the supplier control account values in the Customer Take on Balances" account and the "Supplier Take on Balances" account. Do NOT enter these into the customer control account or the supplier control account. If you are using payment or cash based VAT, enter the provisional tax values to the "Customer Take on Balances" account and the "Supplier Take on Balances" account. Do NOT enter it to the provisional tax account. (By provisional tax, we mean tax which has reflected on customer / supplier invoices but which is not yet settled
Opening Balances for Inventories
- It integrates into the general ledger. Key in the inventory account’s values in inventory take on balances account. Do NOT enter the value into the inventory control account. The procedure for entering inventory will take care of this value. If inventory does not integrate into the general ledger, you can enter the inventory value directly into the inventory account.
- Print out your batch. Cross check, correct all values entered and make a backup of your company. Lastly but not least, update the batch.
- Print out a trial balance for every period the transaction was entered. Compare Pastel's trial balance to your existing ones, and ensure that they are correct. If there are any errors, enter adjusting journals.
Cash Book Opening Balances
There are two issues which you have to deal with in cash books:
Foreign Currency Cash Books.
For foreign currency cash books, you enter the local currency value into a suspense account and not into bank account. Pastel does not let you post to the foreign currency bank account with a journal entry type. You can then, at a later stage, in the cash book, post the amount from the suspense account to the bank account. Use the reference of "ZZZZZZZZ" to prevent the transactions from appearing on your bank reconciliation.
The First Bank Reconciliation.
If you are going to use the bank reconciliation facility, the first time you do bank reconciliation can cause difficulties. The reason is that your opening bank balance includes all checks and deposits which have not yet been processed by the bank. This will mean that your reconciliation balance will not balance to your bank statement.
The solution is to enter these uncleared items individually into the bank account as items to be reconciled, without changing the bank balance. You do this by entering the item and its contra directly to the bank account. For the contra entry, enter a reference "ZZZZZZZZ", since Pastel excludes such entries from the bank reconciliation. You are now in a position to complete the take-on.
Customer Opening Balances
You must first set up your customer processing, create each customer's account, and you must know how to enter customer journals.
To enter opening balances in Pastel for customers
- Obtain the required balances. If you need to enter aged balances, obtain balances for each ageing period you use. Otherwise, obtain the current total outstanding balances.
- Use the Process>>Journals menu option. Select an entry type which allows customer processing.
- When you entered general ledger opening balances, you put the customer control account balance into the "Customer Take on Balances" account. Set up this take-on account as the contra account.
- In the batch settings, uncheck the Invoke Open Item check box.
- If you are not using payment or cash based VAT uncheck the Tax Processing check box. If you are using cash based VAT, check the check box.
- Key in balances, per each account, and the period required. If you are using cash based VAT, enter balances with their tax codes. If you do this over a period of time, make a backup whenever you stop working.
- Entering more transactions into an account to achieve accurate ageing, make sure the references are unique per each transaction failure to which ageing will be wrong.
- Print out your batch. Check to confirm correct values are entered, back up the company and update the batch.
Check the value of the "Customer Take on Balances" account and the customer control account. The opening customer control value should now appear in the customer control account and should be out of the take on account, which should now have a zero balance. If there are any errors, process adjusting journals.