If you are transitioning your accounting to SimplBooks and have outstanding receivables or payables from the previous period, their total amounts will be recorded in the initial balance entries.
No entries will be created for documents added before the date of the initial balance entry.

● For detailed instructions on entering amounts into the initial balances, refer to the guide on Entering initial balances.

● Unpaid purchase invoices should be entered under Transactions -> Purchase Invoices with their original dates. You may select an appropriate expense account, but it is not crucial for the initial balance entry (no entry will be added to this document). The date and total amount are important. If an invoice is partially paid, enter the full amount and mark it as paid so that the remaining balance is correct. No financial entry will be created for payments made before the initial balance date. The debt must be recorded in account 2310 Payables to Suppliers in the initial balance entry. For more information on entering purchase invoices, see the guide on Entering purchase invoices.

● Uncollected sales invoices should be entered under Transactions -> Sales Invoices with their original dates. You can simply mark the invoice content as initial balance or add all the information from the original invoice, based on your preference. If you have the invoice in PDF format, add it under “Additional Invoice Information” in the “Existing Invoice Copy” field. This way, you can resend the invoice to the customer if needed, and it will be identical to the original. If the invoice is partially collected, enter it in full and add the payments so that the invoice balance is correct. The receivable must be recorded in account 1210 Receivables from Customers in the initial balance entry. 

● Do you have a prepayment to a supplier? Record it under Transactions -> Payments. Enter the original date of the payment. The payment will remain in “pending” status and can be linked to the supplier invoice later. The prepayment must be recorded in account 1650 Prepayments to Suppliers in the initial balance entry.

● Has a prepayment been received from a customer? Enter it under Transactions -> Receipts. It will also remain in “pending” status and can be linked to the sales invoice later. The prepayment must be recorded in account 2210 Prepayments by buyers in the initial balance entry.

● If the company owes money to a reporting person, add an expense report under Transactions -> Expense and Travel Reports (add a single line to the report for the required balance). The debt must be recorded in account 2680 Payables to Reporting Persons in the initial balance entry.

● If a prepayment has been made to a reporting person, add it under Transactions -> Payments, select the reporting person, and ensure that the payment recipient type is “Reporting Person.” The prepayment must be recorded in account 1405 Receivables from Reporting Persons in the initial balance entry.

● For more information on entering payments and receipts, refer to the guide on Manual entry of payments and receipts.

Finally, check that everything has been entered correctly. The reports in the menu will be helpful:

• Sales ledger – balance of uncollected sales invoices and customer prepayments
• Purchase ledger – payables to suppliers and made prepayments
• Reporting persons – payables to reporting persons and prepayments made to them

 

If you have any additional questions, please write to us at support@simplbooks.ee