The Opening Balances for Share Trading Entities are set up in a similar way to trusts in Simple Invest 360.
- For instructions on this process, please see Opening Balances - How to Setup a Trust
In regards to the Operating Statement for Trading Entities, Simple Invest 360 will calculate figures related to sales, purchases, and cost of goods sold beginning in the first processing period in the fund.
As the Opening Balances period is not processed, these figures will not be calculated in this period and in turn comparatives in the Opening Balances period will not be automatically available.
- To work around this, you can create opening balance accounts related to these figures which will then display separately on the Operating Statement.
|From the Main Toolbar, go to Accounting.
|Select Chart of accounts from the list.
- Click on Add Account and select Other:
- Create an account to represent Sales in the Opening Balance period. This needs to be in the 20000-29999 account number range (income):
- Repeat the process to add the Cost of Goods Sold and Purchases accounts for opening balances. These accounts need to be in the 30000-49999 range (expenses):
- Enter the Opening Balance figures in a new transaction similar to the one below. Balance this transaction against 49000/(Profit/Loss Allocation Account):
The debit figure in the Opening Balance - COGS account = Total COGS less Purchases
(as purchases are automatically added to the Total Cost Of Sales figure on the report)
E.g. If the Total Cost of Goods Sold = $70,000:
- Opening Balance - Purchases = $50,000
- Opening Balance - COGS = $70,000 - $50,000 = $20,000
Once complete, apply the Tax Labels:
|From the Main Toolbar, click on Compliance.
- Select Tax Labels in the top right-hand corner:
- Search for the Opening Balance accounts you have created and select the following tax labels:
- Sales = Other Sales Of Goods And Services
- COGT = Cost of Sales
- Purchases = Cost of Sales
Applying these tax labels is necessary for these accounts to appear on the reports.
Once complete, generate the Operating Statement - Trading Entities, and these new accounts will appear in the appropriate section:
These accounts created are only used in the Opening Balances period. Because Simple Invest 360 uses different accounts for system calculations, 2 lines of Sales / Purchases / COGS will be displayed in the first processing period: