This is a mission critical process to ensure happy customers both now and at every financial year end. Get this wrong and your support levels and those of your VMG team mates, will be excessively high and we’ll have unhappy users and we’ll hurt our reputation.
Measure twice, cut once.
Step 1
Process the closing Trial Balance (opening balances in VMG) via the General Journal.
- Post all entries to their relevant ledger accounts in VMG Accounting
- Debtors, Creditors and Banks on the closing TB must be posted to the 9990/000
- VAT take on balance goes to the 9510/000 (VAT Provisional Account). See Step 4, point 3
Step 2
Process the individual supplier balances via the Supplier/Creditor Journal. Use the 9990/000 account as your contra account.
Step 3
Process the individual debtor balances via the Customer/Debtor Journal. Use the 9990/000 account as your contra account.
Step 4
Process your opening bank balances via the relevant Cashbook. The Contra Entry must go to the 9990/000 account.
- If opening bank balance is negative, then process a payment via the relevant cashbook to the 9990/000 account.
- If opening bank balance is positive, then process a receipt via the relevant cashbook to the 9990/000 account.
- If take on VAT is in credit, then post cashbook payment for the VAT take on balance amount to the 9510/000 and then do a receipt and post it to the 9500/00 (VAT Control Account)
This concludes the opening balances process in VMG.
Please email any edits to this document to alan@vmgsoftware.co.za