General Ledger
Make sure setup has been completed first. This section helps move relevant information from the previous accounting system used.
Step 1: Make sure the General Ledger is set up as you desire. First set the GL account per category to the names and order you prefer. See Setting up Tres Bank Management and General Ledger.
Step 2: Determine the General Ledger implementation (start) date. Get the General Ledger ending balances from the previous accounting program, manual bookkeeping records, or the agency accountant. The balances need to be from the day prior to the implementation date. For example, if the implementation date is 1/1/24, balances are from 12/31/23. Enter all General Ledger account balances as one journal entry 1 day prior to implementation. Click here for detailed directions on how to add a Journal Entry in Tres.
- Go to Journal Entries and click 'Add Journal Entry' in the upper right of the screen.
- Enter the date of the Journal Entry.
- Click 'Add New Row'.
- Select the GL Account Name field dropdown box, and search for the GL Account.
- Enter either the debit or credit amount.
- Click Add and continue this step, entering all beginning balances.
- Click Save.
NOTE: Total Debits and Credits much balance. If starting 1/1, entry should be dated 12/31. By definition, the credit total must equal the debit total for the starting journal entry.
The following accounts need to have management side details (made up of payments and reservations) to match the General Ledger balances (entered with all other General Ledger balances).
a. Client Balances
b. Supplier (Vendor) Balances
c. Funds to be Deposited
d. Credit Card – Merchant of Record
e. Credit Card – Agency Corp Card
Step 3: Align payment / reservations with corresponding GL accounts: Certain accounts are managed with reservations and payments that then posted to the General Ledger. Make sure those accounts start with the reservations and payments balances aligned with their corresponding GL accounts as of your GL start date. Converting your data from TBO to Tres will bring over invoices and payments.
Step 3A: Ensure each Bank account Register aligns with its GL balance.
For each Bank Account enter the following:
- Enter cleared balance as of start date for Bank Account in Tres.
- Enter each non cleared bank item prior to the start date.
These are done by adding a Payment in Tres.
- Click on Payments on the main menu.
- Click on Add Payment in the upper right corner of the screen. Select 'Other'.
- Paid By: select Agency.
- Paid To: select Other (this should default).
- Select Other: search for the entity paid. Learn more about Other Profiles.
- Payment Date: Enter the date one day prior to the start date. For example, if you are starting 2/1/24, the payment date would be 1/31/24.
- Amount: Enter the amount paid.
- Method: Select check.
- Check Number: Enter the check number.
- Bank Account: Select the correct bank account. Learn more about Bank Accounts.
- Date Cleared: Leave blank.
- Select Save & Next.
Continue entering all uncleared checks.
- Make sure your GL initial balance (see below for details) matches the balance for each bank account inclusive of both cleared and non-cleared bank items for that account.
Example:
Have bank account called “Business Operating”: Start date is Feb 1. As of Jan 31, the cleared balance is $5,400. There are two checks not yet cleared, one for $100 and one for $200.
- Enter check 1: as of 01/31 (Date is prior to 2/1), amount is $100, enter details and enter no journal entry.
- Enter check 2: as of 01/31 (Date is prior to 2/1), amount is $200, enter details and enter no journal entry.
Also enter cleared balance as of 01/31 of $5,400. Make deposit to bank account with a Payment.
- Click on Payments on the main menu.
- Click on Add Payment in the upper right corner of the screen. Select 'Other'.
- Paid By: select Other.
- Paid To: select Agency.
- Select Other: Enter Bank Name. Learn more about Other Profiles.
- Payment Date: Enter the date one day prior to the start date. For example, if you are starting 2/1/24, the payment date would be 1/31/24.
- Amount: Enter the beginning balance amount.
- Method: EFT.
- EFT Number: Leave blank.
- Bank Account: Select the correct bank account. Learn more about Bank Accounts.
- Date Cleared: Enter one day prior to start date.
- Select Save & Next.
- The Journal Entry will Credit the bank and Debit retained earnings. Note: This will be offset when entering the beginning balance Journal Entry.
Make sure GL balance for this bank account as of 2/1 is $5,100 – total of cleared and non-cleared bank items.
Step 3B: Ensure Client Balances (Reports – Core – Client Balances) aligns its GL balance.
For Trams Back Office Users:
As a results of the change in accounting approach Client Balances need to be adjusted in Trams Back Office. Client Balances are made up of 3 distinct items. Open invoices, Open Client Vouchers, and Client Unapplied Payments as of the final day of using the TBO general Ledger. To calculate your beginning Client Balance in your General Ledger when implementing Tres do the following steps.
TBO accounted for all invoices not paid from or to clients as part of the Client Balance in the GL (offsetting them to Sales). Hence when converting to Tres we need to identify those open client invoices and remove the balance from Client Balances (offsetting to sales). The reason for the adjustment is that the sale will be accounted for when both the Client and Supplier balances are settled in Tres and without making an adjustment for the open invoices that were in TBO there would be a double accounting of the sales.
Go to Invoices / Query: Set Client Type to All and Invoice Status to open. Run once for Invoice Type of Sale print the report and note the total. Run the report a second time for Invoice Type of refund print and note the total. Results show client balance generated from invoices and is the amount that needs to be journalized to be moved out from TBO Client Balance GL account and offset to reducing sales.
If the amount of the Client Balance is positive (which it will be as long as your open invoices client balance for sales exceeds your open invoice client balance for refund) then Client Balances will be a Debit Balance in your GL. You will need the breakdown of the open invoices by Travel Category. Select Reports | Invoice | Activity and run a detail report for Submit to ARC and Supplier from 1/1/1987 to the final day of using the TBO general Ledger for Invoice Status Open:
Find the section of the reports that shows the breakdown by Travel Type. The entry is a Debit to Sales for each of the Travel Categories and a Credit to Client Balances.
To double check your net Client Balance:
Reports | Core | Client Balances: Run Client Balance and note column 2 “unapplieds”.
Do an Invoice query for “vouchers.” Invoice Query with Invoice Status “Open” and Invoice Type “Voucher”. The total of the Unapplied and the Vouchers two will be your new Client Balance.
In Tres run a Trip Search with the filters for Reservation Client Balance is Greater that 0.00. This step is to verify sales figure adjustments and should be the amount you backed out of Sales. Reminder, it will be recognized as the payments come in on these trips for both Clients and Suppliers and journalized automatically.
For Non Trams Back office Users:
Run the report from your old system showing each client balance from invoices and payments, and make sure it aligns with the Client Balance in the GL. See note Below:
- Enter a Trip with a confirmed reservation with Track Client Payment set to Yes for each client with a balance.
- When all the Trips have been added, run a Trip Search with Reservation Client Balance > 0. This should match the Client Balance report in your previous system.
Step 3C: Ensure Supplier Balances (Reports – Core – Supplier Balances) aligns its GL balance.
For Trams Back Office Users:
Parallel to Client Balances TBO accounted for all invoices not paid to or from suppliers as part of the Vendor (Supplier) Balance in the GL (offsetting them to Cost of Sales) Hence when converting to Tres we need to identify those open supplier invoices and remove the balance from Supplier Balances (offsetting to Cost of sales)
Reports | Core | Vendor Balances:
If the amount of the Supplier Balance is positive (which it will be as long as your open invoices Vendor balance for sales exceeds your open invoice vendor balance for refunds) the Vendor Balances will be a Credit Balance in your GL. Create a journal entry, which should be a Debit to Vendor Balances and a Credit to each Travel Type Cost of Sales.
To double check your work: Reports | Core | Vendor Balances: Run Vendor Balance and note column 2 “Total Unapplied”. Run reports |Report Generator |Select Vendor activity summary. Invoice Type is “Voucher” and Payment Status “Vendor Open”. The open Unapplieds and open Supplier Vouchers and that will be your new Supplier Balance.
In Tres run a Trip Search with the filters for Reservation Supplier Balance is Greater than 0.00. This is the amount you backed out of Cost of Sales. It will be recognized as the payments come in on these trips for both Clients and Suppliers.
For Non Trams Back Office Users:
Run the report showing each supplier (vendor) balance from invoices and payments, and make sure it aligns with the Supplier (vendor) Balance in your previous system. See Note Below:
- Enter a Trip with a confirmed reservation for each supplier with a balance. See Quick Add Trip and Reservation.
- When all the Trips have been added, run a Trip Search with Reservation Supplier Balance > 0. This should match the Supplier Balance report in Trams Back Office.
Step 4: Merge Client Balances into Supplier Balances (For Trams Back Office Users and Non Trams Back Office Users)
Enter a Journal entry that moves the remaining Client Balances to 0 and is offset by impacting Supplier Balances. Client Balances is most likely a Debit entry (unless you have a lot of refunds) so the offset will be a credit to Client Balances and a debit to Supplier Balances.
Step 5: Possible additional items
If you have balances in your “Credit Card – Agency Corp Card” that means you have set up a payable to that credit card – agency corporate card account. When you pay that card be sure the payment for items prior to the start date matches the payable setup for them.
If you have balances in your “Credit Card – Merchant of Record” means you have set up the credit card company owing you. When you get paid, make sure the payment received is for items prior to the start date matches the receivable for them.