The company I am working for had to move to Sage from a single cash system which meant invoices were only entered when paid.
When Sage was set up the Accountant put through all the opening balances then got us to input all the individual invoices which related to March 2009 or prior.
This is what she told us to do but we are not convinced it is correct.
eg. The purchase ledger balance of all outstanding invoices was posted to the control account. The individual invoices were posted to the suspense account then journaled to the control account. As these invoices have never been accounted for in the p and l we feel they should have been posted to the various nominal codes eg postage etc. If this is the case how would I go about moving theses invoices to their correct nominal codes?
If these invoices all relate to the previous financial year - then what you have done is correct. You need to record what was owed to you at the year end, but what P&L accounts they were from is irrelevent in your current year.
Setting up a Sage can always be tricky, especially when moving from a cash based system to a system using sales and purchase ledgers.
Assuming I read what you say correctly...
In this circumstance I would normally journal the opening balances for the balance sheet to their codes with the customer and supplier control accounts going to the suspense. The invoices that then make up those sales and purchase ledger balances would then also be posted to the suspense account to contra the opening balances previously entered. This then establishes the customer and supplier aged balances.
The invoices that you speak of that you believe will not have been accounted for in the P&L should have been accounted for in the previous period as part of the debtors/creditors for the production of the statutory accounts. It would be incorrect of you to try to include them in the P&L again as the accountant will have previously accounted for them. If you are still uncertain then I am sure the accountant would be happy to confirm this is the case.
I do have a bit of an uncertainty in your description of the journals completed so maybe examples would be useful if you are still not sure (removing any confidential info of course).
