Initial setup of financials including brought forward balances
- Diane Partridge
- John Nairn (Unlicensed)
Overview
Readysell has a set procedure for bringing data into your Readysell 8 financials from your existing system. We always follow the procedure below. We use this procedure when you convert to Readysell 8 financials. At the time your Readysell 8 system goes live and even if you are converting to Readysell 8 financials at some time after your initial Readysell 8 conversion.
Readysell does not import any Financial Data from your Old Database automatically. We use a manual journal to bring in the figures. The Manual General Ledger Journal/s will need to be entered into Readysell to stand for the Closing from your old Database.
We need all previous financial years to be closed on your old system. The P&L Appropriation Roll must be completed on your Old System for the Previous Financial Year even if your accoutant has not provided you with the Adjusting Journal before the Roll.
If it isn't then get this done before you continue with the steps below.
DO NOT DELETE your old System or its Database. You will be referring back to any previous history for the previous financial year. You will also need our old system to reprint invoices and for other historical data lookup. If you need to pay licence fees to keep access to your old system, we suggest you do so until your financials are fully setup and running in Readysell and the need for any invoice reprints or other reports from you old system is no longer required.
Financial go live dates
Before we start any work on financials, we have to know the financials go live dates for Readysell. Normally those start dates are the same dates that you converted to Readysell. But the decision is up to you. Some sites decide to never use some Readysell financials, such as bank reconciliations, payroll etc. It is all up to you, but make a considered decision about when you want to go live (or not) with the following financial features. Remember, if you do not go live with some financial features from the first day you start using Readysell, it in some cases will take a lot more work to get started if you do decide to use those particular financial modules later:
- Bank reconciliations
- General ledger
- GST Reporting
- Debtors
- Creditors
- Payroll
- (Soon Asset Register)
Procedure
GST Reporting
- If you used any Readysell GST items in preparing your previous GST reports before the financials GST go live date. We need to keep the GST items but flag them as reported to the tax office. To do this , all GST items dated before the GST reporting go live date need to be included in one GST Batch and flagged as reported.
- If you did not use any Readysell GST items in preparing your GST reports before the GST go live date. Then Readysell will delete all GST items before the Readysell financials GST go live date
- Readysell lite stores do their GST reporting using the GST details report, see GST reporting for Readysell Lite sites. Full Readysell sites use GST batches for GST reporting. See: GST Batches.
- GST Paid and receivable reasonableness test
- If the GST payable and/or receivable figures on your closing general ledger trial balance from your old system are not reasonable. Readysell will let you know that the figures do not seem reasonable. But we will continue and process the information as usual.
Optional Balancing for Full Readysell only, adding two balancing GST items
The balance in your GST payable general ledger account and your GST received general ledger account must equal the sum of all GST items at all times
Readysell will create two balancing GST items on in each of the two accounts above. To make your opening gst items agree to your opening general ledger balances for accounts payable and accounts receivable.
Those two items will be flagged as paid by including them in an opening GST batch. See also: Optional Set up for GST Go Live for Full Readysell
Importing General Ledger balances into Readysell using general journals
Always close the previous financial year, even if your accountant has not yet approved the end of year position
If you converted to Readysell on the last working day of a month (being the last working day, not necessarily the last calendar day):
Run a trial balance from your old system as at the last day of trading on your old system.
Work out the new general ledger accounts from V8 for the general ledger trial balance postings.
Enter a journal into Readysell containing all the closing balances shown on your trail balance from your old system, as at the last date of trading in your old system.
Readysell can help map the correct account codes if required
If you converted to Readysell on any day other than the last working day of a month (being a few days or weeks into the next month):
Run two general ledger trial balances from your old system:
One being as per the end of the month before conversion to Readysell. We use this to get the closing position YTD up to the end of the month before you converted to Readysell
The second being for the month in which you converted to Readysell. This trial balance has to be for one month only. That being the month you converted to Readysell. We use this trial balance to get the movements in the old system for the month you converted to Readysell
Enter two general journals into Readysell containing all the closing balances from the two trial balances from your old system:
One being as per the end of the month trial balance for the month before conversion to Readysell
The second being for the month in which you converted to Readysell but only the movements
Readysell can help map the correct account codes if required
We suggest you keep your old system running, as you will need the old system to look up general ledger history before the date of your conversion to Readysell. You will also need your old system to reprint invoices from before you converted to Readysell.
For Reaydsell Lite sites. Your debtors/creditors balance on your debtor trial balances in Readysell will not balance to your general ledger until all the old debtors/creditors items are paid in your old system.
Handling prior year adjustment journals from your accountant
After the conversion date to Readysell, you may receive a list of prior year adjustments from your accountant. If this happens:
Enter the sum of all revenue and expense adjustments into the profit and loss appropriation account as at the last day of the previous financial year
Clearing old general ledger balances out of Readysell 8 prior to your financials go live date
If you have been using Readysell 8 for a period of time before you start to use Readysell 8 financials. Then there will be some existing financal data in Readysell 8 prior to your financials go live date. That existing data will need to be cleared, including:
General ledger balances and dissections for all periods prior to your financials go live date
GST items prior to your financials go live date
Bankings prior to your financials go live date
Adding two balancing GST items
Readysell will add two balancing GST items. Those items will stand for the GST paid and received as at the end of trading on the last day before your Readysell 8 financials go live date
Adding banking items
Readysell will add banking items to your bank accounts to stand for:
The closing presented balance in your bank accounts as at the end of trading on the last day before your Readysell 8 financials go live date
Every unpresented item outstanding on your old bank rec for each bank account as at the end of trading on the last day before your Readysell 8 financials go live date
How to put together your Brought Forward Journal in order to bring your GL balances from your old system into Readysell
Print a trial balance from your old general ledger system as at the end of trading on the last day before your Readysell 8 financials go live date
We need to check four key figures to check the balance from your old general ledger is correct in respect to those four key accounts. See table below:
| Module | Data | General Ledger | Variance |
|---|---|---|---|
| Customers | Run a customers trial balance as at the date of the conversion data from Readysell. This trial balance for customer should line up to the trial balance on the old system as at conversion date. | This value must be the same value as the customer trial balance | If the General Ledger trade debtors figure varies to the customers trial balance as at date of conversion, a variance needs to be entered against a general ledger variance account to be reviewed by your accountant |
| Suppliers | Run a suppliers trial balance as at the date of the conversion data from Readysell. This trial balance for suppliers should line up to the trial balance on the old system as at conversion date. | This value must be the same value as the supplier trial balance | If the General Ledger trade creditors figure varies to the suppliers trial balance as at date of conversion, a variance needs to be entered against a general ledger variance account to be reviewed by your accountant |
| Stock on hand | A stock on hand report is run from the old system at the time of conversion and a report is run on Readysell 8 . | The value of the imported stock on hand figure must be entered | If the General Ledger stock on hand figure varies to the stock on hand report as at date of conversion, a variance needs to be entered against a general ledger variance account to be reviewed by your accountant |
| Bank Accounts | Usually working from a bank statement for each bank account that is to be reconciled as at last bankrec on the old system. The closing balance plus/minus any unpresented deposits and/or payments = General Ledger Bank | Value to be worked out | If the General Ledger bank figure for each bank account varies to the final closing as at date of conversion, a variance needs to be entered against a general ledger variance account to be reviewed by your accountant |
| GST | Two Gst items need to be inserted to line up to the General Ledger gst paid and gst received | Gst Paid and Gst Received | If the General Ledger GST figure varies to the total of the GST Items as at date of conversion, a variance needs to be entered against a general ledger variance account to be reviewed by your accountant |