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MySF Administrator
Group: Administrators
Last Login: 29/01/2012 4:16:49 PM
Posts: 208,
Visits: 958
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One of the early setup tasks in MySF is loading opening balances. This item explains how it works in a little more detail. There are 2 ways of Loading Opening Balances.
Method 1
When you add an asset (either Financial or Physical) which you acquired in a previous Financial Year you are prompted with the message
"Do you want to load opening balances now?"
If you answer 'Yes' you will be taken to the Load opening balances screen and the amount of the asset will be recorded against a new account in the General Ledger for the Asset you have just entered. There is a Debit Amount against the entry equal to the capitalised cost, and a Credit amount for any amount of Accumulated Depreciation which has been recorded when the asset was entered.
For example;
If we enter an asset bought in 1999 for $100k and Accumulated Depreciation of $10k, then the $100k is recorded against the Asset record as a Debit, and the $10k as a Credit to an Asset called Accumulated Depreciation.
The Balancing entry needs to be added against the Members Records as a Credit entry. An entry should be made against each member which splits the value proportionately based or each members equity in the fund. To do this correctly it is advisable to have the calculated predetermined percentage split to each member and apply it to each to each entry.
If you choose to answer No to the question of adding current balances be aware that the General Ledger and the Asset system will be out of Balance until you add the overall entries through the Load Opening Balances Screen (see Below)
Method 2
Load Opening Balances - A Single entry process
The second way of loading balances is to do it as a Single entry process through the Load Opening Balances Menu item. These entries are entered agained the asset account and members accounts and can be saved away prior to processing. You can therefore take your time in adding the values. If you adopt this technique a single entry is made against the equity accounts for members again based on the total equity position of each member in the Fund.
Either technique will arrive at the same result. Remember that the total of all Members accounts plus liabilities is equal to the net value of all Asset accounts
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