36.8 Example

First, the general ledger accounts, including the vendor controlling account, are entered into the general ledger master file using the Chart of Accounts screen under Setup, General Ledger.

Next, vendor XYZ is entered into the vendor master file using the Vendors screen under the Setup, Accounts Payable menu as shown below:

coreman00000007.gif

Then, the beginning balances are entered for all the general ledger accounts using the General Journal Entries screen.

The final step is to enter a beginning balance voucher for vendor XYZ for $100.00.

coreman00000007.gif

The date of each beginning balance voucher should be the period prior to the first period of operations on the C/Books Accounting Software.

For reference purposes, it is suggested that the voucher number be somehow flagged as a beginning balance voucher. For example you might want to start with voucher number BB0001. BB signifying beginning balance. This assists in reconciling all the beginning balance vouchers to the beginning balance of the accounts payable controlling account.

The detail line of the voucher is distributed to the gl or general ledger and the Accounts Payable controlling account.

The voucher credits the vendor's account for $100.00 and debits the Account Payable controlling account for $100.00. The header portion posts $100.00 to the vendor balance and to the Accounts Payable controlling account. The detail portion posts $100.00 to the Accounts Payable controlling account. The net effect on the controlling account is zero and the vendor now has the correct balance of $100.00.

If the beginning balance of a vendor payable includes a debit memo then the debit memo is entered using the debit memo entry screen.