OB reversing for Euro suppliers

[yola]

Could anyone help me please.

I am going through OB procedure and now have to reverse all the balances.
I have done that but my balances for Euro suppliers still appear on TB (in Creditors and Suspence)

When I am trying to reverse it (with that special reversing feature within OB procedure) it's showing zero balances for reverse.

Should I reverse it with Journal entries then?

Thank you in advance for all the help

[brucedenney]

You need to explain what you have done "OB Procedures" covers a multitude of sins.

No idea why you would want to "reverse" the opening balances, that would make it pointless putting them on in the first place.

You have put on opening balances for Customers and suppliers and now you want to do what?

Typically I would do a journal to make the TB in Sage match up with the final TB of the previous accounting system.

The Debtors and Creditors should not be journalled into, if they are not right then it is because you have left something out on some ones account.

I would expect all the Creditors not just the Euro ones to appear in Creditors control.

The suspense account balance would get journalled out as part of the opening balances journal.

[leyburnsolutions]

No idea why you would want to "reverse" the opening balances, that would make it pointless putting them on in the first place.

The Debtors and Creditors should not be journalled into, if they are not right then it is because you have left something out on some ones account.

Sage's recommended opening balance procedure (even in the new Opening Balances process screen in v2012) specifically mentions reversing the nominal balances once the customer & supplier opening balances have been entered, I assume on the basis that the Debtors and Creditors Control will form part of the opening trial balance...

John

[brucedenney]

What they tell you to do is to zero out the suspense and the creditors and debtors control, this is not really a reversal as the transactions are still there, the language is not the most helpful.

The tool they provide has not done that. I suspect that the reason is that some transactions were entered incorrectly.

Here is what I would do.

Assuming you are not VAT Cash Accounting.
Run a dummy VAT return and make sure there is nothing on it, everything should have been entered as T9 non VAT and accounted for VAT in the previous accounting system
I suspect you might have entered some balances incorrectly with Tax Codes and that is why they were not reversed.

If you have turnover transactions on the VAT return then you did not enter all your opening balances correctly as they should all have been on the T9 tax code. My gut instinct thinks that you put your Euro transactions on a different tax code and that is why the balance of them has not been removed.

a/ You can edit those transactions to have the correct tax code and then do a journal as per c below
b/ Wipe the Audit Trail and start again.

If there is nothing on the VAT return, then it probably was some sort of glitch in the Auto journal, as you can imagine it is not something many people ever use more than once, so it could be a bug.
a/ You could try a restore of your backup and rerun the process, if you can consistently reproduce it as a fault in the program, your should submit it to sage as a bug.
b/ Wipe the Audit Trail and start again
c/ Journal out whatever remains in the Suspense and Creditor/Debtor Controls and carry on with the opening journal.

[leyburnsolutions]

Bruce - just as an update to this, the OP also posted over at SageForum: http://sageforum.co.uk/viewtopic.php?t=16905 and it would appear that the journals had not be done in full hence the remaining balances.

John

[brucedenney]

But why were they not done in full?

I suspect that the Euro Transactions were put on with the wrong tax code, so they were not considered to be opening balance transactions.

The issue is that just journalling the balances to zero will not resolve the problem, because if they have a tax code they are going to incorrectly be reported on the next VAT return resulting in a duplication.

[yola]

Thank you for all the replies.

The Vat code is T9 so it is not the case here.

There were only balances in Cr Control and suspence for the amount of Euro creditors.

I have reversed it with the Journal.

My only concern would be why it have not cleared the full balance in first place, leaving that Euro suppliers balance(in Cr Control and suspence), but letting me clear it manually.

In sage support info they say that with Foreign Trader lots of things needs to be done manually, maybe that's why