After recording the beginning balance and setting up standard information (contacts, product/services, and finances) and outstanding transaction (accounts receivable and accounts payable). Now, we are ready to record the accounting transaction.
What we have already prepared
In Part 1 : Data preparation is the trial balance for the year ended before using PEAK. For example, if you start to activate in PEAK on 01 Jan XX, you have to use the year-ended trial balance as of 31 Dec xx, which included only assets, liabilities, and shareholders' equities.
But if you start to activate in PEAK during the year, the trial balance used will be as of the prior date before activating in PEAK. For example, if you start to activate in PEAK on 01 Apr XX, the trial balance has to be presented the information from the beginning of the year 01 Jan XX to 31 Mar XX. Assets, liabilities and shareholders' equities will be presented as of 31 March XX. Income and expenses will be presented the balance from 01 Jan XX to 31 Mar XX etc.
The are two parts of set up the beginning balance as follows:
Part 1: Adjusting the trial balance to be ready recorded in PEAK.
Need to adjust some parts of the trial balance:
Step 1: Open the Trial Balance in PEAK (Accounts > Trial Balance > press Export). There will show the transaction previously recorded in the part of input the beginning balance (accounts receivable and accounts payable). You can name this trial balance file as "TB-Peak".
Step 2 Open a prepared trial balance of the entity. You can name this trial balance file as "TB-Old".
Example of the prepared trial balance
Deduct the item amounts in TB-PEAK from the item amounts in TB-Old (because the item amounts were already recorded in PEAK). Revenue or expenses will be deducted from the retained earnings. Then, we will get the new trial balance named as "TB-NEW", which is not included the items previously recorded in PEAK.
Step 3: Record the information in TB-New as the beginning balance date of the period ended before starting to activate in PEAK (e.g. 31 Dec XX).
Part 2: Additionally, record the adjusted trial balance data in PEAK.
When the adjusted trial balance is ready, then record it in PEAK by following the step below.
Step 1: Go to Accounts menu > Daily journals > Create Daily Journal.
Step 2: Set the date to be the date of the accounting period before activating in PEAK. The journal number recorded will change to begin with JV.
Step 3: Record the information in TB-New to this daily journal (JV) by specifying the account and its sub-ledger. For example, if it is a savings bank account, choose an account number of 111301 then choose its sub-ledger as bank (or finance channel). We already added in Part 4: Finances Creation.
- Completion of Record Trial Balance (Beginning Balance Part 8/8) -
All how to record a beginning balance in PEAK.
Part 1: Record a Beginning Balance (Beginning Balance Part 1/8)
Part 5: Set Up Accounts Receivable (Beginning Balance Part 5/8)
Part 6: Set Up Accounts Payable (Beginning Balance Part 6/8)