Overview - Accounting Software Secrets
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Overview

Overview

Overview

Although this author is not an advocate of starting a new file, there are times when it is necessary.  The most common is an error in setting up inventory or non-inventory items.  Second most common is an extremely large file that either won’t condense, or cannot condense enough to make it a reasonable size.

In the past the lists could be exported, cleaned up, and imported rather easily.  The challenge typically comes in transferring the beginning balances and/or transactions into the new file.  The add-on described here handles the first issue, and there are several add-ons that automate the transfer of transactions.  Keep in mind, there are some set up issues that may still need to be done manually (such as setting up of service subscriptions if the “remove all transactions” option is not used and/or payroll related information that cannot be transferred).

What the Tool Will Do

The trial balance, open customer invoices, unpaid vendor bills and inventory balances can be transferred into a new file using the Beginning Balance Transfer Utility as of any date. If there are transactions from the transfer date to current in the old file, those will be moved using a different transaction copier tool. 

This tool is designed for the accrual basis of accounting.  Due to the use of Opening Balance Equity when creating the opening balances, cash basis receipts or payments of the beginning balances will not be reflected accurately.  For cash basis files, consider using the List Importer.

1. The Trial Balance is transferred as a single journal entry with the following changes:

            a. The Trial Balance amounts for Accounts Receivable, Accounts Payable and Inventory are posted to the Opening Balance Equity account. Posting to the Opening Balance Equity Account avoids duplicating amounts when you transfer the detail for these accounts to the new file. The amounts posted to the Opening Balance Equity account (by the Trial Balance transfer) are offset to zero when you when you transfer the detail for these accounts (providing that the detail reports match the balance sheet).

            b. A new “Sales Tax Payable (BegBal)” account is created and the Trial Balance amount for the regular Sales Tax Payable account is posted to this new account. This new account is required because posting to the regular account would require a breakdown by Sales Tax vendor which is not available. The new account will zero out when the opening balance amount is paid to the sales tax vendor(s).

 2. The Accounts Receivable transfer creates a new Invoice for each unpaid Invoice as of the transfer date selected by the user. These Invoices will have the same transaction and due dates as the original Invoices but will have only one item on them. This item is an opening balance item which points to the Opening Balance Equity account.

 3. The Accounts Payable transfer creates a new Bill for each unpaid Bill as of the transfer date selected by the user. These Bills will have the same transaction and due dates as the original Bill but will be coded to the Opening Balance Equity account. In addition, each Item Receipt transaction in Accounts Payable is converted to a Bill. The conversion is needed because QuickBooks doesn’t provide the ability to transfer the Item Receipt transaction type.

 4. The Inventory Transfer creates an Inventory Adjustment Transaction for each inventory item with an extended cost value as of the transfer date selected by the user. The Inventory Adjustment Transactions add the quantity, value and average cost to the new company and credit the Opening Balance Equity account.

 

System Requirements

This tool requires QuickBooks Pro or Premier version 2003, 2004, or 2005 or Enterprise Solutions version 3, 4, or 5.  Microsoft Access 2000 to 2003 is also required, or the free Microsoft Access 2000 Runtime engine that can be downloaded from www.q2q.us from the How to Buy page.

How to Obtain the Tool

We are a reseller of the tool so you can purchase it via the Success Tool Store at www.4luvofbiz.com or contact us directly at (925) 247-0100 x 3. 

There is a trial version that requires a transfer date of 12/13/03 or 12/13/07 (so you can try it with a live data file or the sample company file that comes with the QuickBooks software).

The pricing at the time of this writing is as follows:

Version

Price

Works With

 3

$99

QB 2003 (R7P or higher), Enterprise 3

 4

$99

QB 2004 and 2005, Enterprise 4 and 5

There are also discounted prices available for those who have purchased the Data Transfer Tool or an earlier version of this tool.  Contact us at (925) 247-0100 x 3 for more information.

More information on this topic

QuickBooks Transaction Copiers