Opening balance on Accounts Payable not showing on Balance Sheet?
Stienie
Member Posts: 9
I have just opened an account for one of my clients on Wave. I have added the suppliers, and then added a bill with the opening balance. I created a service called AP Opening Balance and made sure it is pointing to Accounts Payable. However when I run a Balance Sheet the opening balances is not showing?
Also, I find that the Accounts Payable Ageing report does not show any negative values? Is there perhaps a way I can change this?
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I have searched the forum, but couldn't see anything on how to add my accounts payable opening balances and link them to the various clients? Please help?
Hi @Stienie.
First of all. thank you so much for recommending our software to your clients!
When you say you made sure it was pointing to Accounts Payable, do you mean that you set the category for the item to Accounts Payable? This would cancel out the entry in Accounts Payable since it would be assigning both sides of the transaction to the same account.
Hi Alexia, I saw that when I ran the General Ledger report, just after I posted. Do you perhaps have an article on how to add opening balances for Accounts Payable and Accounts Receivable? I have played around with the journals, but cannot seem to link it to a customer or supplier?
Me too! I've entered the total in the opening balances but how do I establish the individual account balances?
Hi @Stienie and @dolanbetney.
The only way to do it on a customer-by-customer basis or on a vendor-by-vendor basis would be respectively through invoices and bills.
It isn't currently possible to keep attach transactions to vendors or customers otherwise. It is a feature we're working on, but it isn't quite ready just yet.
So to create your opening balance with a vendor, you could create a bill with an item called "Opening balance", priced at the amount of your opening balance. Categorize it as whatever expense account makes the most sense, depending on the vendor (so if it's utility bills, you would categorize this as "Utilities").
You would do the same thing for opening balances with customers, but using invoices instead of bills.
In both cases, it would be better to re-enter all bills and invoices by hand, since the dates of the transactions to accounts payable and receivable would be more accurate, but as long as everything is in the same year, there shouldn't be any problems.
Thanks @Alexia!
Also, I find that the Accounts Payable Ageing report does not show any negative values? Is there perhaps a way I can change this?
Do you perhaps have an answer for the 2nd portion of my original question? I often have clients make a payment to a supplier, without the actual bill, and I used to use the accounts payable ageing to identify payments without bills?
Hi @Stienie, I tested things out on my end, and unpaid bills with negative prices do appear as negative entries under Aged Payables. Can you give me a bit more details on the transactions at play? It'll give me a better idea of what the issue might be. If you can give me screenshots of those same transactions, better still.
If a payment was made, you can just record it as an expense transaction to whichever payment account was used. There's no need to go through Accounts Payable unless the service or product was received and the payment is still outstanding. If the payment is outstanding, you can still create a bill in Wave, regardless of it having a physical bill to match in the real world. It'll be the easiest way to keep track of payments owing.
Hi @Alexia, I needed to capture a credit note for a supplier with no outstanding balance. The only way I could see to do this was by capturing a negative bill? So I did capture the bill with a negative amount, but it is not showing on the report? I am attaching the screen shots.
Hi @Stienie.
Thank you for bringing this up. I did some testing on my end and it seems that credit notes are still being calculated under total unpaid, even if they aren't showing up in the body of the report itself. I'll investigate a little deeper on why this is happening.
Your numbers should still match up on your Account Transactions report, however, so even if this report looks a little off, your numbers are accurate.
If you are interested, a fellow Waver figured this workaround for handling vendor credits, I recommend giving it a read, it might also help you out.