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It is possible to work with a modified chart of accounts in a new book year. The changes can be simple, for example, a few account numbers that change, or more structural, for example, when the number of digits used for the numbers is increased. This topic provides a step-by-step plan for such a conversion.
Let's say that in the old year, 4 digits are used for general ledger accounts: 1 to 9999. The internal account numbers for debtors and creditors then consist of 5 digits. If the diagram is changed to 6 digits for ledger account numbers, the number of digits for the debtor and creditor accounts is increased from 5 to 7. So those numbers will be adjusted as well. Subsequently, in the old book year, links can be established between the ledger account numbers in the old and the new year. For debtors and creditors, the links are primarily based on the search codes. Once the links have been made, it is possible to make a financial comparison between the old and the new book year. In the (trial) balance sheet, the figures of the previous book year are shown besides the figures of the current year, based on the new ledger account numbers, as if they had already been used in the previous year. The step-by-step plan is as follows.
Step 2. Adjusting the chart of accounts
Step 3. Linking old accounts to new accounts
Step 4. Copying opening balance and outstanding invoices
The steps are explained one by one below.
In the case of prolongation, a new book year is created on the basis of the last book year. Among other things, the chart of accounts, the relations and the outstanding invoices are copied. The general ledger accounts and the relations are still identical and the opening balance sheet of the new book year reflects the final state of the balance sheet in the previous book year. Changes can then be made in the new year, for example in the chart of accounts. Optionally, such changes can even be made later in the year, after journal entries and business relations have been added in the new book year.
Step 2. Adjusting the chart of accounts
A modification of the schedule can be simple, for example, account 4890 becomes 4620. To do this, you can use the function to rename account numbers, via Bookkeeping > Financial > Change general ledger > Renumber general ledger. Each field within the administration that refers to account 4890 is then filled with the number 4620. In this way, accounts can also be merged.
It is also possible to rename multiple account numbers at once by using the import function, via Bookkeeping > Import, type is Rename chart of accounts.
A structural adjustment of the schedule is possible via Supervisor > Book > Increase chart of accounts. This makes it possible to increase the maximum number of digits for account numbers. As a result, the account numbers of debtors and creditors are also adjusted. After the schedule has been adjusted in this way, the account numbers can also be renamed, as described above.
Step 3. Linking old accounts to new accounts
After making adjustments to the chart of accounts for the new book year, account numbers no longer correspond well with the account numbers in the previous year. To ensure that comparative figures in the balance sheets can be made, a link must be made between the account numbers in the old book year and the account numbers in the new book year. For each ledger account in the old book year, the corresponding number for the following book year must be entered in the External Number 1 field, via Maintenance> Financial > General ledger > Reporting. Also, the Convert chart of accounts to next bookyear setting must be activated, via Maintenance > Settings > Book > Other.
Step 4. Copying opening balance and outstanding invoices
After External number 1 has been filled in for all ledger accounts in the old year and the conversion setting has been activated, the opening balance can be recompiled via Bookkeeping > Financial > Opening Balance > Copy opening balance. The closing balances of the previous year are then entered in the "BB" daybook, with the new account numbers applied. The outstanding invoices of debtors and creditors are also taken over. In principle, the relations are recognized on the basis of the search codes, and if is not successful, an attempt is made to recognize the relations on the basis of their account numbers. After a structural adjustment of the chart of accounts, the latter will no longer be possible. Therefore, it is advisable not to change the search codes of debtors and creditors if major changes are also made to the chart of accounts.
The transfer of the balance sheet (and the outstanding invoices) can be repeated when necessary, for example after corrections or additions have been made in the previous book year.
If the Convert chart of accounts to next bookyear setting is active, then when the balance sheet is transferred, it is checked whether the account numbers referred to by External Number 1 are present. If this is not the case, the journal entry for the balance of the account is placed in the account differences account. With a note in the description that an error has occurred. At the end of the process, there is an error report in the form of an Excel file. Once the errors have been corrected, the balance can be taken over again.
A subsequent check can be carried out by consulting the balance sheet or the balance sheet and comparing the figures of the previous year with those of the current year. They should fit together. When zooming in on the details, it should be clear that the old account numbers from the previous year are no longer mentioned.
Remarks
•In converted administrations prior to book year 2023, the balance sheet cannot be copied from the previous book year. This feature is blocked for older book years.
•It is not possible to correctly display the balance sheet or the trial balance if the numbers of ledger accounts from the previous book year, which have been given a different number in the new financial year, are reused for a different purpose in the new book year. It is advisable to avoid this. Thus, if account 4890 is converted to another number, reuse of this number in the following year could distort the display of the balance sheet.
•The Trial Balance report in the report module does not take into account any conversions that have occurred. This report will not be able to properly reflect last year's balance sheet next to the current year's balance sheet.
•In the event of an adjustment of both the account number and the code of a debtor or creditor, any outstanding item of this relation remaining in the previous year cannot be included correctly in the transfer of the opening balance sheet. This can be solved with additional entries in the "BC" daybook for corrections to the opening balance sheet.