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One of the most confusing aspects of any accounting transition is ensuring that the starting balances of all accounts match the ending balance in the previous system. This topic provides a step-by-step guide to transferring your balances from your old accounting system into Control. There are other ways to achieve this, but unless you have a very strong accounting background we recommend you follow these steps.

Warning: This process should only be done after you completed all of the other steps outlined in guide_to_transitioning_to_control_full_accounting. If you do this step before the other steps are completed, you will probably not end up with the desired results (matching balance sheets).

This process is based on the following approach:

1. Ensure all order or bill specific GL entries are made.
   • Enter all historic orders into WIP and ARs.
   • Ensure all historic costs are posted against WIP orders.
   • Enter all historic bills into APs.
   • Enter any unreconciled checks.
   • Enter starting inventory balances.
   • Enter your YTD payroll numbers (if using payroll).

1. Reverse (zero out) all Asset, Liability, Income, and Expense accounts except a few system accounts (A/Rs, A/Ps, etc.).

1. Enter the balances from your old accounting system.

1. Close the Month.

The first step in the process is to make sure that ALL of the GL entries associated with entering data are in the sytem before you try and reconcile the total GLs. To this end, it only makes sense to attempt this after all of the steps identified in guide_to_transitioning_to_control_full_accounting are completed.

If you do this step before the other steps are completed, you are not likely to end up with matching balance sheets as these other actions will add GL entries that must then be taken into consideration!

Finally, the following system only works if the A/R or A/P balance between Control and your old accounting system match. Control does not allow posting entries into these GL accounts so these must match before proceeding.

The first step is to reverse, or zero out, the GL entries in Control that were created by the previous steps. This is a fairly straight forward process but there are a few caveats.

1. Print a GL Changes Summary from 1/1/2000 through the transition dateThe transition date is going to used as the term for the date when you want the Control balances to exactly match the old accounting system balances. .
   • In the main menu, click on Reports, then Financial Reports & Closeouts, then GL Account Reports, and then on GL Changes Summary.
   • Click on the Show Detail button under date.
   • Click on the date selection button that was revealed. Choose Custom.
   • Enter 1/1/2000 as the From Date.
   • Enter the transition date as the To Date.
   • Click on the Entire Day buttonUnlike most accounting programs, Cyrious allows you to break the GL down by time of day. This has benefits but catches some new users who are not used to specifying the time. .
   • Click on the Print button to output the report to the selected printer.

1. Create a new Journal Entry to record these offsetting entries.
   • In the main menu, click on Banking and then New Journal Entry.
   • Click on the Date drop-down in the top right and set it to the transition date.
   • In the Description line, enter Reverse Pre-Startup Values
   • Type any notes you would like to record in the Journal Notes section.
   • Click in the Account cell in the first row.
   • Enter the first account name from the GL Changes Summary report by typing the name until the account is found or choosing it from the drop-down list.
   • Tab to the debits or credits column. To reverse the balance you must enter the amount in the opposite column. For example, a $50 debit balance should be entered as a $50 credit in this entry.
   • If desired, tab to the Notes column and enter any notes.
   • Hit the down-arrow key or click Insert New Line to add a new line.
   • Repeat for [almost] all accounts on the GL Changes Summary report.
   • IMPORTANT NOTES

### The following accounts CAN NOT be adjusted manually and should be omitted from the reversing entry:

• Accounts Receivable (asset)
• Accounts Payable (liability)
• Vendor Credits (asset)
• Customer Credits (liability)
• Customer Deposits (liability)
• WIP (asset)
• Built (asset)
• Orders Due (liability)

### WIP, Built, and Orders Due always balance so omitting them causes no problem.

### Create an entry for the Opening Balance Equity account in the amount of (Accounts Receivable - Accounts Payable + Vendor Credit - Customer Credit - Customer Deposits) and post this balance.Omitting these accounts will cause the journal to not be in balance and we will use Opening Balance Equity as the “plug” number. This plug will be reversed when the old totals are posted and A/Rs and A/Ps are again omitted.

• Save the Journal Entry by clicking on the Save button on the Action Toolbar on the right.

1. Re-Print the GL Changes Summary from 1/1/2000 through the transition date and confirm that all accounts excluding the 5 above plus Opening Balance Equity are zero. If not, evaluate what items were missed and edit the previous journal entry or create a new entry with the additional changes.

Once you have the balances in Control zero'd out (excluding the system accounts mentioned above), you are ready to input the balances from your old accounting system.

1. Print the GL balances from your old accounting systemDifferent accounting systems have different reports. You may have an alternate report to achieve the steps below, but it is safe to assume that all accounting systems can generate an Income Statement and a Balance Sheet. .
   • Print a Balance Sheet as of the transition date.
   • Print an Income Statement (P&L) from the start of the year until the transition date.

1. Create a new Journal Entry and enter the starting GL Balances into Control.
   • In the main menu, click on Banking and then New Journal Entry.
   • Click on the Date drop-down in the top right and set it to the transition date.
   • In the Description line, enter Starting Values from Old Accounting System
   • Type any notes you would like to record in the Journal Notes section.
   • Click in the Account cell in the first row.
   • Enter the first account name from the Balance Sheet by typing the name until the account is found or choosing it from the drop-down list.
   • Tab to the debits or credits column. Do not reverse these entries, but enter them in their current accounting form. For example, a $5000 bank account balance would be entered as a $5000 debit in this entry.
   • If desired, tab to the Notes column and enter any notes.
   • Hit the down-arrow key or click Insert New Line to add a new line.
   • Repeat for [almost] all accounts on the Balance Sheet.
   • Repeat for [almost] all accounts on the YTD Income Statement.
   • IMPORTANT NOTES

### The following accounts CAN NOT be adjusted manually and should be omitted from the reversing entry:

• Accounts Receivable (asset)
• Accounts Payable (liability)
• Vendor Credits (asset)
• Customer Credits (liability)
• Customer Deposits (liability)

### Create an entry for the Opening Balance Equity account in the amount of (Accounts Receivable - Accounts Payable + Vendor Credit - Customer Credit - Customer Deposits) and post this balance. This will offset the entry made in the last section.

• Save the Journal Entry by clicking on the Save button on the Action Toolbar on the right.

1. Print a Balance Sheet in Control and compare it to the old accounting system.
   • In the main menu, click on Reports, then Financial Reports & Closeouts, then Standard Accounting Reports, and then on Balance Sheet.
   • Click on the Show Detail button under Balance Sheet Date.
   • Click on the date selection button that was revealed. Choose Custom.
   • Enter the transition date.
   • Enter 11:59:59 PM as the timeUnlike most accounting programs, Cyrious allows you to break the GL down by time of day. This has benefits but catches some new users who are not used to specifying the time. .
   • Click on the Print button to output the report to the selected printer.

1. Print an Income Statement in Control and compare it to the old accounting system.
   • In the main menu, click on Reports, then Financial Reports & Closeouts, then Standard Accounting Reports, and then on Income Statement.
   • Click on the Show Detail button under First Period Date.
   • Click on the date selection button that was revealed. Choose Standard.
   • Enter 1/1/20xx as the From Date (use the current year).
   • Enter the transition date as the To Date.
   • Click on the Entire Day buttonUnlike most accounting programs, Cyrious allows you to break the GL down by time of day. This has benefits but catches some new users who are not used to specifying the time. .
   • Click on the Print button to output the report to the selected printer.

1. If there are any differences in the balance sheet or income statement, these should be tracked down before proceeding and resolved using additional journal entries.

Before moving forward, you should close the month. See startup_-_close_the_month.

• guide_to_transitioning_to_control_full_accounting
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