How to set the Opening Balances
When you first start using Migration Manager’s Accounts system, you may have a number of matters that already have outstanding invoices and/or Client account balances in your existing accounting system. You can use the Set Starting Balances tool to add this information to Migration Manager so that the Accounts system is on par with the data in your existing system. Note that it is recommended that you should set up opening balances for these matters before you start using the accounts functionality.
To set up these Opening Balances, follow these steps:
1. Open the Set Starting Balances window
If you haven't yet completed the Accounts Setup tool, you can create your default Matter fees from the Accounts Setup tool. To access this click the Accounts button in the main toolbar and then select 'Accounts Setup'. For instructions on how to use the Accounts Setup tool please see: How to use the Accounts Setup Guide. When the Accounts Setup tool opens, click 'Set Starting Balancess'.
2. The Opening Balances window
The Opening Account Balances window will now appear. By default, this window will show a list of all open matters sorted by Matter ID. Any matters for which you have already entered opening balances or created accounts transactions won’t be shown in the list.
3. Set date of Opening Balances
First select the ‘Date for Client Account Opening Balances and Invoices’. All opening invoices and opening client account balances will be created as at this date.
4. Set Opening Client Account Balances
Next, for each Matter, if the Matter has a positive Client Account balance, enter the details into the ‘Opening Client Account Balance’ column i.e. if you currently have funds in your Client Account for this matter, record them here. If you have multiple bank accounts which hold your Client Funds, select the client bank account that these funds are held in.
5. Set Opening Balances Owing
Next, if a matter has outstanding invoices owing on it, calculate the total amount outstanding and work out how much of this relates to Fees, how much relates to Disbursements and how much relates to Costs i.e. does this client currently owe you any money for an unpaid invoice? If so, record it here by breaking the amount owed into (1) Fees, (2) Disbursements, and (3) Costs.
If there is an opening Professional Fee amount owing, enter the opening fee, select a tax code for the opening fee and select the person who did the work for the opening fee.
If there is an opening Disbursement amount owing, enter the value in the ‘Opening Disbursement Inc Tax’ column, select a tax code for the opening disbursement and select the bank account the disbursement was paid from.
If there is an amount owing for Costs, enter the value into the ‘Opening Cost’ column and select a tax code for the opening cost
6. Create Opening Transactions
When you are ready to create the opening transactions for Matters that you have entered information for, click ‘Create Opening Transactions’.
Note: Please check your work carefully before you click this button, as once you have created the opening balances for a particular matter, you won’t be able to change them. Each time you click ‘Create Opening Transactions’, the system will create the opening transactions for any matters that you have entered details for since the last time you clicked ‘Create Opening Transactions’ including:
- Any opening Client Account Balances plus a receipt;
- If you have entered an Opening Fee, Opening Disbursement or Opening Cost, the system will create an opening fee, an opening disbursement and/or an opening cost, together with an opening invoice for the matter.
When you are sure you have finished entering all opening balances, click ‘Finalise’. This will open up access to the accounts functionality for all matters, including those you haven’t yet entered opening balances for.
Important: Once you have clicked ‘Finalise’, the Opening Balances option will be removed from the system and you won’t be able to enter any more opening balances, so you should be careful not to click this button until you have finished entering all of your opening balances.
Note – if you don’t have time to enter all of your opening balances at once, you can close the opening balances form then re-open it later and continue entering your opening balances. If you do this, don't click the Finalise button until you are completely finished.
I made a mistake entering the opening balances for a particular matter. How do I fix it?
Open the matter in question and reverse the opening client receipt or invoice that has the error. If the error is in the opening fee or cost, you should delete the fee or cost after you have reversed the invoice. If the error is in the opening disbursement, you should reverse the disbursement after you have reversed the invoice.
Once you have reversed and/or deleted the problem transactions, you can manually create a new fee, disbursement, cost, invoice and/or client receipt. Make sure you use the conversion date as the transaction date and enter the same description as the reversed transaction.