Home For AAT student members AQ 2013 AAT Level 2 (Level 5 in Scotland)

Sage Accounts Question

CeeJaySixCeeJaySix Well-KnownRegistered Posts: 645
After a bit of confirmation if anyone's got their Sage head on...

I'm studying Level 2 with Premier and have the Sage Instant Accounts self-study pack. I've run into a small problem in that the workbooks don't marry up to the software in the odd aspect (I think the software is a newer version than the workbooks relate to).

At the end of the first workbook, section 9 deals with setting up opening balances. Now the workbook keeps referring to a wizard which does it all nicely for you; I can't find this wizard for love nor money in the software (it's definitely not where the book says it is, and I'm not an IT novice and have looked everywhere I can think of). I'd rather learn to do it manually anyway, but not sure if I'm doing it right.

First step is to post outstanding invoices/credits to individual sales/purchases ledger accounts. Fine, can do that by individual record.

That then automatically updates your control accounts in the nominal, which gives you an unbalanced trial balance.

Then the book seems to suggest (and this is where I'm not clear because it has a wizard doing it all, and I'm trying to replicate manually) that you need to reverse your control account postings so you have a zeroed trial balance (bearing in mind at this stage no other opening balances have been entered). This is easy to do with a journal entry, I'm just not convinced it's the right thing to do.

Then, you enter all the nominal ledger opening balances (again they use a wizard, but it's simple to do manually). Included in this is entering the opening balances into the sales/purchases control accounts.

Now this may just be me, but it seems to me that I've entered the correct values, reversed them, then posted them again. Is this correct? And if so, why? Things seem to balance so I'm guessing it's correct, but I don't really understand why I'm doing it!! Something to do with the old invoices/credits already being entered in your outgoing accounting system, but still needing them to be present on the new system as they're outstanding so still need tracking, but not having them affect your opening balances which must be posted regardless as they're pulled from your closing balance sheet prior to switching systems...??


  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    Okay, the more I think about it the more I'm happy with my conclusions on that one, the invoices and credits you're posting have already been taken into account on your control accounts in your outgoing accounting system, therefore you need to enter them as they're still unpaid individual transactions but as you've got to carry all your closing trial balance balances forward and they're already part of your old control accounts, you need to reverse them to avoid doubling your outstanding amounts in those control accounts.

    I've hit a brick wall with entering opening bank balances with unpresented cheques/uncleared receipts though; again the book is using this awesome 'opening balances' wizard which I don't have in my version of Sage. I've entered my opening bank balance, but where I'm meant to enter my uncleared transactions I don't have a clue...anybody?
  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    For future reference for anyone else who encounters this:

    The 'wizard' that sets all your opening balances up for you was introduced in 2012, hence is included in workbooks from then on. The version of Sage I was provided is from 2011 (not ideal).

    My manual method of introducing your unreconciled bank transactions without upsetting your opening balances (a little help from Google and a lot of headaches later):

    1. Open your bank record and enter the outstanding payments and receipts, with the other side of the double entry to the suspense account
    2. Enter your bank balance as per your bank statement as a receipt (assuming it's positive), again other side to the suspense account
    3. This should leave both your suspense account and your bank account showing the same value (opposite dr and cr) as the trial balance you're working from to input your opening balances.
    4. Journal suspense and bank to nil both accounts. Your records now show no balance, but the outstanding payments are available to reconcile when you receive your next bank statement.
    5. Input your opening balances as normal (obviously this time you'll use your opening bank balance as per your cashbook/balance sheet rather than the bank statement).

    Hopefully that will help the next person who runs into this problem...if anybody knows for sure that I'm going about this the right way it would be nice to have confirmation!
  • Hollyp2100Hollyp2100 Just Joined Registered Posts: 2

    I am also studying Sage Instant Accounts with Premier Training. I am now on Workbook 6 and trying to do the bank
    reconciliation. Unfortunately as you stated my books seem to be for 2012 and the software is 2013, also some of my
    figures are completely different to the ones in the workbook which makes the bank reconciliation impossible. Did anyone else have this problem?
  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    Give Premier a bell, they sorted me out pretty quickly. Are you using the restores that come with the Sage pack or the ones provided for download on Premier's site?
Sign In or Register to comment.