RDA Systems Inc

What This Process Does

• This process is used to add or replace a beginning balance for a balance sheet account at the start of a fiscal year.

Best Practices

This process allows new users to enter beginning balances for their balance sheet accounts when a conversion of their existing accounts is not done.
This process may also be used to correct beginning balances, if necessary, after considering each item below in the order that they appear.

• If the current balance of a balance sheet account is incorrect, it could be that the beginning balance is wrong. If the ending balance from the prior fiscal year is correct, the process to Set Beginning Balances should be run and the current balance checked for accuracy again after this process is complete. Set beginning balances may be run from the Maintenance menu.
• If the ending balances are wrong and the books have been closed for the year, journal entries can be made to pre-year in the current fiscal year to correct the differences which will provide an audit trail of the entries. If the books for the previous year have not been closed, correcting entries should be made to the prior fiscal year and the Set Beginning Balances process should be rerun.
• If the previous two processes will not work because the correcting entries don't balance or the ending balances from a prior fiscal year aren't correct, then new beginning balances may be added via this process.

Add Beginning Balances

1. Finance → Financial Management → Maintenance → Financial Years / Current Month → New Year → Add Beginning Balances
2. Populate the appropriate fields as needed.
3. Once the fields are populated, click Save.
4. The new beginning balance will replace the original beginning balance if there was one.