Note: This topic assumes that you have a current accounting system, (whether it be another software accounting system or a paper system), and that you are in the process of migrating your Chart of Accounts and General Ledger to OneSource in preparation to begin using OneSource software.

While OneSource includes over 300 reports of all types, a small handful of financial reports (i.e. Income Statement and Balance Sheet) are generated exclusively from the debits and credits posted to the General Ledger from within OneSource.  Thus, in order to produce these types of reports, it is necessary to properly transfer certain financial information out of your existing paper or software system into OneSource.

Objective: Your objective will be to create a single journal entry that will enable OneSource to start off, as of the final cut over date, with a properly balanced Balance Sheet and Chart of Accounts.  When you are finished, you should be able to print an exact duplicate of your current systems year to date Income Statement and Balance Sheet.

Step by Step Preparation:

1. IMPORTANT CLARIFICATION POINT: The first thing to note or determine if

2. your final cut over date will be as of the very last day of your company's fiscal year,

3. and if your year end Revenues, COGS, and Expenses have been rolled up into one or more an Equity accounts on your Balance Sheet,

4. and have been reset to $0.00.  

5. If so, you can skip/ignoreall sections in this document that make reference to printing or entering information from your Income Statement.  (If not, you WILL need to execute each of the instructions that involve your Income Statement).

6. For example, if your company's fiscal year is January 1st to December 31st, and you have set your final cut over date to be January 1st, and all of your year end Revenue, COGS, and Expense accounts have been set to $0.00 (when the year end process of rolling up your profit or less into an Equity account), THEN you will NOT need to follow any of the instructions referencing the Income Statement (Profit & Loss).

7. Print out or produce a balanced Balance Sheet from your existing accounting system as of the final cut over date.  If necessary, print our or product an accurate fiscal year-to-date Income Statement (which is sometimes referred to as a Profit & Loss report).

8. Make sure each of the GL Accounts represented on your Balance Sheet and Income Statement has been set up in the OneSource Chart of Accounts.

9. Make sure you have set up a current Financial Period that include the period that the final cut over date is within.

10. Double-check to make sure that there are no transactions to be posted, to the OneSource General Ledger (GL), on each of the tabs displayed on the Batch Post GL Transactions form.

11. Double-check to make sure that there have been no transactions already posted, to the OneSource  General Ledger (GL), by printing a Balance Sheet from OneSource.  (The Balance Sheet should show no Assets, Liabilities, or Equity amounts.  (NOTE: If there are any numbers showing on your Balance Sheet (such as sample transactions), you can use the Batch Unpost GL Transactions tool to unpost (reset and roll back) all GL transactions that are not manually entered journal entries or inventory adjustments).

Creating the Beginning Balance Journal Entry - Step by Step:

1. Click on the Accounting menu.

2. Select Make Journal Entry(s).

3. In the Adjustment Date field, enter the Final Cut Over Date.

4. Make sure the Accrual checkbox is not checked.

5. In the Reason field, enter something like Beginning Balances as of (x date) (where x date is equal to the final cut over date).

6. Using your balanced Balance Sheet report as a reference, in the Account and Debit/Credit fields...

7. Enter a separate debit amount for each of the positive values, by GL Account, listed under the Assets section of your Balance Sheet.

8. Enter a separate credit amount for each of the negative values, by GL Account, listed under the Assets section of your Balance Sheet.

9. Enter a separate credit amount for each of the positive values, by GL Account, listed under the Liabilities section of your Balance Sheet.

10. Enter a separate debit amount for each of the negative values, by GL Account, listed under the Liabilities section of your Balance Sheet.

11. Enter a separate credit amount for each of the positive values, by GL Account, listed under the Owners Equity section of your Balance Sheet.

12. Enter a separate debit amount for each of the negative values, by GL Account, listed under the Owners Equity section of your Balance Sheet.

13. 1. NOTE: The Retained Earnings should be whatever they were as of the first of the year or financial period.  The Net Income (or Net Profit, or something similar to this type of name that represents the total accumulated net profit or loss, year to date) should be equivalent to the net profit or loss represented on your year-to-date Income Statement (profit and loss) report.

13. If you have determine, from there instructions above, that you DO need to follow the instructions to enter your fiscal year to date Income Statement totals, using your fiscal year-to-date Income Statement (profit and loss) report as a reference, in the Account and Debit/Credit fields...

14. Enter a separate credit amount for each of the positive values, by GL Account, listed under the Sales or Revenue section of your Income Statement.

15. Enter a separate debit amount for each of the negative values, by GL Account, listed under the Sales or Revenue section of your Income Statement.

16. Enter a separate debit amount for each of the negative values, by GL Account, listed under the Cost of Goods Sold (or Cost of Sales) section of your Income Statement.  

17. Enter a separate credit amount for each of the positive values, by GL Account, listed under the Cost of Goods Sold (or Cost of Sales) section of your Income Statement.  

18. Enter a separate debit amount for each of the positive values, by GL Account, listed under the Expenses section of your Income Statement.  

19. Enter a separate credit amount for each of the negative values, by GL Account, listed under the Expenses section of your Income Statement.  

20. Enter a separate credit amount for each of the positive values, by GL Account, listed under the Other Revenue (or Other Income) section of your Income Statement.

21. Enter a separate debit amount for each of the negative values, by GL Account, listed under the Other Revenue (or Other Income) section of your Income Statement.

22. Enter a separate debit amount for each of the positive values, by GL Account, listed under the Other Expenses section of your Income Statement.  

23. Enter a separate credit amount for each of the negative values, by GL Account, listed under the Other Expenses section of your Income Statement.  

24. When all entries are complete (and the total of the Debits and Credits are perfectly balanced) click on the Post button.

25. When you are finished, press the Close button.

26. Last Step: Reconciliation.  

27. Print a Balance Sheet from OneSource.

28. Make sure the total of the Total Assets total equals the Total Liabilities and Equity total.  (If not, there is a set of tools and reports to help you find and correct this problem).

29. Compare the bottom line totals with your balanced Balance Sheet originally produced from your formal accounting system. They should match to the penny. (Be sure to select the same cutoff date).

30. Print an Income Statement from OneSource.

31. If your final cut over date is a day other than the last day of your fiscal year to date, compare the Income Statement balances from the old system and OneSource.  They should balance to the penny.  If your final cut over date is the first day of your fiscal year, then the Net Profit (Loss)should be $0.00.

NOTE: If either of the Balance Sheet or Income Statement reports do not match your former system, it will most likely be due to one or more of the following reasons: (1) Your Beginning Balance Journal Entry (which you created step by step in this document) is incorrect, (2) Your GL debits and credits were not completely empty when you started the process (in other words, your Balance Sheet was not $0 before you created the Beginning Balance Journal Entry above), or (3) One or more of your transactions that you have entered to get your AR, AP, or Banking system up and running with the right numbers (Invoices, Bills, etc) has a transaction that does NOT debit and credit the same account (which is necessary to do to prevent transactions from being recognized on the Balance Sheet twice).

ID: U1177

ID: A1084