This document describes the considerations and process for entering the beginning balances of outstanding Accounts Payable items.
If General Ledger beginning balances have already been entered, you must ensure the Post to General Ledger Effective Date is populated with a FUTURE date prior to entering open A/P items. This is set in the Admin - Properties menu by the Administrator. This will make these entries available for future payment and reporting while preventing them from affecting the previously loaded balances. For example, in the example below, we loaded historical balances as of 12/31/13, so our post to general ledger date is 1/1/14.
Navigate: Admin > Properties > General Ledger
- Browse to the Accounts Payable section on the Financials dashboard
2. Enter all outstanding vendor invoices that appear in the legacy accounting system's Accounts Payable Aging Report. Each document will be enter via the Create Vendor Invoice screen.
Note: If a partially paid vendor invoices exist in the legacy system Accounts Payable Aging, the user has the option of either setting up the vendor invoice for the unpaid balance or of setting it up with the original vendor invoice amount and creating vendor payments to represent the amounts previously applied to the vendor invoice that take the balance down to the current balance.
Note: It is key that these Vendor Invoices are posted into a fiscal period PRIOR to your selected Post to General Ledger Effective Date.
Note: The detail lines included in the vendor invoice documents created to set up the beginning balance would typically consist of a single detail line per document post to a non-project account as the transactions entered here would not normally be expected to update the project balances.
3. Enter any unapplied vendor payment balances or vendor payments necessary to apply to partially paid vendor invoice noted above from the legacy system Accounts Payable Aging. Payments will be entered through the Create Vendor Payment screen.
Note: If the vendor payment represents the remaining balance on a partially applied payment, the payment can be entered either for the remaining balance amount or for the original payment amount. If the original payment amount is entered, a detail line for the amount of the previous application(s) should be entered in the vendor payment. It should be charged to a non-project account as the transactions entered here would not normally be expected to update the project balances.
Note: A Vendor Payment import is available which can be used to add these items via a batch import.
Note: If Employees are Vendors, create an invoice from your historical expense reports and post/pay those invoices as described above.
4. Run an Accounts Payable Aging Report as of the cutoff fiscal period. Confirm that balances reconcile to legacy accounting system aging report and balance sheet.