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Community Contributor **

Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

Dear QuickBooks Experts,

 

I work for a nonprofit organization and we just bought and installed QuickBooks nonprofit edition. Now, we are having difficulties entering the opening balances for our balance sheet accounts as at the start of our new fiscal year which is January 1, 2019

For instance, our balance sheet from our current system, as at December 31, 2018 has a total cash balance of USD 177,000 which is made up of funds balances from four (4) funding source below:

        Grant 1 = USD 80,000

        Grant 2 = USD 20,000

        Contract 1 = USD 35,000

        Unrestricted Funds = USD 42,000

 

Ideally, I would like to enter these opening funds balances and tagged them to these four (4) funding sources so that I will be able to generate profit and loss reports by the four funding source (customer: job) as well as by programs (Class) for any reporting period.

 

Secondly, I understand that I will need to enter Accounts Receivables and Accounts Payable using the invoice and enter bill module by debiting A/R and Credit Opening Balance Equity instead of Revenue account debiting Opening Balance Equity and Crediting Accounts Payable. When I do this, the revenue does not show in the Profit and Loss by Job or Class. As you are aware, the Profit and Loss report by job and class is a very important report for donors as it shows how much of their funds was received, expensed and remaining.

 

Find attached a file with sample opening balance entries based on what is recommended in QuickBooks manuals and user-guides and which is not working for us based on what I just described there above.

 

I would really appreciate if you could show me how to correctly enter these opening funds balances into our QuickBooks company file so that I will be able to generate Profit and Loss reports among other important donor reports.

 

I would greatly appreciate your assistance.

 

Ariiqi

Solved
Best answer 02-06-2019

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019


@Ariiqi wrote:

Secondly, I understand that I will need to enter Accounts Receivables and Accounts Payable using the invoice and enter bill module by debiting A/R and Credit Opening Balance Equity instead of Revenue account debiting Opening Balance Equity and Crediting Accounts Payable. When I do this, the revenue does not show in the Profit and Loss by Job or Class. As you are aware, the Profit and Loss report by job and class is a very important report for donors as it shows how much of their funds was received, expensed and remaining.

 

Sorry I can not help with your first question

as far as a/r and a/p are concerned, you need to create an item that links to opening balance equity and use that item on a bill (non inventory type item), or customer invoice (service type item).

Journal entries should be the exception when using QB, they often do not work as you think they should, and  when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used.    Journal entries also bypass accrual/cash reporting, and will not show on many reports.

View solution in original post

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

I recommend the book Running QB for Not For Profits, by Kathy Ivens.

 

The Checking is not a JE to OBE. It's real equity, not OBE. OBE is generic equity. You Make Deposit to Real Equity.

 

The reason to use Invoices, not JE, for AR, is that you will use it for the Customer and Job name as Grantor and Grant. The AP balances also are not generic, so you use Enter Bill. Now you see the regular input fields for Class tracking, as well.

 

Don't link your Invoice item to Opening Balance Equity. Make one Equity account and name it Restricted Fund Balance. That is what you need to use for the Grant AR. Again, Not OBE because you have Specific Tracking requirements.

 

The Enter Bill is a Vendor Name, and if that web hosting applies to a specific customer or grant, fine. That also isn't OBE; it's a prior Fund Balance activity.

 

What matters for Prior Equity, is if you are Cash or Accrual basis. Example:

For Either Basis, enter the open invoices dated historically using Real Items and the Enter Bills using Real items and accounts, Do not include these in the Trial Balance data for the prior year end; they are already going to be there. When they are paid in the New FY, that is reporting properly for Cash and for Accrual Basis. You don't need to use Equity at all, and you certainly need to avoid OBE. You have some Restricted and some Unrestricted Equity, never OBE.

 

And you avoid JE for anything with Names; never for AR, AP, QB sales  or donation or pledge or grant, sales taxes, QB inventory, QB payroll. The program has Functions for this, and that is not JE.

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

The Reason OBE exists is because the programmers offer these Functions that make no Accounting sense, such as, "Oh, you just added a bank account; let's put in the balance, too!" The same is true for, "Oh, you just added a customer name, and if they already owe you, let's put that in, too." Now you have generic AR.

 

You are never asked, "What do they own you for, is some of that income and some sales taxes, did you report it in the prior year or will it need to be income in the current year, where did the money in the bank come from, if you have inventory items on hand, add that quantity now and we can pretend you just found them in the gutter or pulled it out of thin air. And since we don't know what it really is, let's dump it into Opening Balance Equity!"

 

You see folks recommending to use OBE, because they Don't Know better. There is no reason to use OBE, when you know it Is Equity and you know the Real Equity or the offset might not even be equity at all! Let's just dump every offset into OBE and we will handle it Again, later, when we realize OBE is a generic dumping ground that needs to be 0 and never used again, once the file is set up, if it was used at all.

 

This isn't the same thing: "by the fact that the A/R and A/P balances would have already been reported in the prior period"

 

You stated they are Still Open. That is part of a Transition, then.

 

"and only waiting to receive cash and disburse cash for the expense."

 

Yes, exactly. You have Open AR and Open AP. These details Matter. That isn't OBE. It's real Details.

 

"the grants receivables would have already been reported as income/revenue in 2018 and the accounts payable would also have been reported in 2018."

 

That's why you Put in the Real Details and date it to match that Real Date you have for the invoice in 2018 and the bill in 2018. By doing this, they "roll" into Equity for you, as of the first date of 2019.

 

"Now, to record the Opening Balances in my new QuickBooks File at 1 January 2019 or 31 December 2018, if I were to use the forms (create invoice and enter bill) to record A/R and A/P Opening balances, I was wondering if I would be double-counting revenue and expense? For example, at January 1, 2019, my Opening would be recorded as follows:"

 

You need to Avoid using Debit-Credit in QB, because there is no JE for AR or AP. The Debits and Credits are behind the scenes. Enter the invoice; you just stated you want to list the Service Item that is linked to Grant Revenue; date it Historically, to match your real historic date. Once you Save this transaction, open it and use Ctl Y. Here you see the Credit to Grant Revenue and the Debit to AR. It did it For You. Use the Functions. Invoice, by definition, Debits AR, because that is its Function.

 

Likewise, use Vendors menu > Enter the Bill that still is unpaid for its original Historic date and list the Web Hosting here and the Customer (and billable or not). A Bill, when looked at using Journal View or Ctl Y, will Debit Expense and Credit AP for you. The bill = the AP part, because that is the Function's reason to exist.

 

"And these are the same entries I would have used in 2018 to record A/R and A/P."

 

In QB, use the Input Forms. Enter Bill for AP. Create Invoice for AR.

 

"I believe, you are saying that I should booked the outstanding A/R and A/P in the new QB file, indicating the relevant customer: jobs and classes just like I would if I am entering new A/R and A/P."

 

Exactly. When the details matter, you enter the Actual Details. You don't have "generic trial balance" when you have AP and AR. You have Name-related Activity to enter properly.

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

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Established Community Backer ***

Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019


@Ariiqi wrote:

Secondly, I understand that I will need to enter Accounts Receivables and Accounts Payable using the invoice and enter bill module by debiting A/R and Credit Opening Balance Equity instead of Revenue account debiting Opening Balance Equity and Crediting Accounts Payable. When I do this, the revenue does not show in the Profit and Loss by Job or Class. As you are aware, the Profit and Loss report by job and class is a very important report for donors as it shows how much of their funds was received, expensed and remaining.

 

Sorry I can not help with your first question

as far as a/r and a/p are concerned, you need to create an item that links to opening balance equity and use that item on a bill (non inventory type item), or customer invoice (service type item).

Journal entries should be the exception when using QB, they often do not work as you think they should, and  when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used.    Journal entries also bypass accrual/cash reporting, and will not show on many reports.

View solution in original post

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

I recommend the book Running QB for Not For Profits, by Kathy Ivens.

 

The Checking is not a JE to OBE. It's real equity, not OBE. OBE is generic equity. You Make Deposit to Real Equity.

 

The reason to use Invoices, not JE, for AR, is that you will use it for the Customer and Job name as Grantor and Grant. The AP balances also are not generic, so you use Enter Bill. Now you see the regular input fields for Class tracking, as well.

 

Don't link your Invoice item to Opening Balance Equity. Make one Equity account and name it Restricted Fund Balance. That is what you need to use for the Grant AR. Again, Not OBE because you have Specific Tracking requirements.

 

The Enter Bill is a Vendor Name, and if that web hosting applies to a specific customer or grant, fine. That also isn't OBE; it's a prior Fund Balance activity.

 

What matters for Prior Equity, is if you are Cash or Accrual basis. Example:

For Either Basis, enter the open invoices dated historically using Real Items and the Enter Bills using Real items and accounts, Do not include these in the Trial Balance data for the prior year end; they are already going to be there. When they are paid in the New FY, that is reporting properly for Cash and for Accrual Basis. You don't need to use Equity at all, and you certainly need to avoid OBE. You have some Restricted and some Unrestricted Equity, never OBE.

 

And you avoid JE for anything with Names; never for AR, AP, QB sales  or donation or pledge or grant, sales taxes, QB inventory, QB payroll. The program has Functions for this, and that is not JE.

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Community Contributor **

Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

Many thanks qbteachment for your superb explanation. What you just explained was my original thinking (i.e., using forms instead of OBE for A/R and A/P). But then I read these many QuickBooks books and user-guides that recommend using OBE for entering Opening Balances for A/R and A/P. It looks to me as if their thinking is informed by the fact that the A/R and A/P balances would have already been reported in the prior period and only waiting to receive cash and disburse cash for the expense. For example, in my case, the grants receivables would have already been reported as income/revenue in 2018 and the accounts payable would also have been reported in 2018.

 

Now, to record the Opening Balances in my new QuickBooks File at 1 January 2019 or 31 December 2018, if I were to use the forms (create invoice and enter bill) to record A/R and A/P Opening balances, I was wondering if I would be double-counting revenue and expense? For example, at January 1, 2019, my Opening would be recorded as follows:

 

A/R:

Debit Grants Receivable

Credit Grants Revenue 

 

A/P 

Debit Website Hosting and Maintenance (expense)

Credit Accounts Payable.

 

And these are the same entries I would have used in 2018 to record A/R and A/P. I hope I am not confusing myself even further. I completely get your point that I should avoid OBE but I was wondering if you can clarify once more time.  I believe, you are saying that I should booked the outstanding A/R and A/P in the new QB file, indicating the relevant customer: jobs and classes just like I would if I am entering new A/R and A/P.

 

Ariiqi

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

The Reason OBE exists is because the programmers offer these Functions that make no Accounting sense, such as, "Oh, you just added a bank account; let's put in the balance, too!" The same is true for, "Oh, you just added a customer name, and if they already owe you, let's put that in, too." Now you have generic AR.

 

You are never asked, "What do they own you for, is some of that income and some sales taxes, did you report it in the prior year or will it need to be income in the current year, where did the money in the bank come from, if you have inventory items on hand, add that quantity now and we can pretend you just found them in the gutter or pulled it out of thin air. And since we don't know what it really is, let's dump it into Opening Balance Equity!"

 

You see folks recommending to use OBE, because they Don't Know better. There is no reason to use OBE, when you know it Is Equity and you know the Real Equity or the offset might not even be equity at all! Let's just dump every offset into OBE and we will handle it Again, later, when we realize OBE is a generic dumping ground that needs to be 0 and never used again, once the file is set up, if it was used at all.

 

This isn't the same thing: "by the fact that the A/R and A/P balances would have already been reported in the prior period"

 

You stated they are Still Open. That is part of a Transition, then.

 

"and only waiting to receive cash and disburse cash for the expense."

 

Yes, exactly. You have Open AR and Open AP. These details Matter. That isn't OBE. It's real Details.

 

"the grants receivables would have already been reported as income/revenue in 2018 and the accounts payable would also have been reported in 2018."

 

That's why you Put in the Real Details and date it to match that Real Date you have for the invoice in 2018 and the bill in 2018. By doing this, they "roll" into Equity for you, as of the first date of 2019.

 

"Now, to record the Opening Balances in my new QuickBooks File at 1 January 2019 or 31 December 2018, if I were to use the forms (create invoice and enter bill) to record A/R and A/P Opening balances, I was wondering if I would be double-counting revenue and expense? For example, at January 1, 2019, my Opening would be recorded as follows:"

 

You need to Avoid using Debit-Credit in QB, because there is no JE for AR or AP. The Debits and Credits are behind the scenes. Enter the invoice; you just stated you want to list the Service Item that is linked to Grant Revenue; date it Historically, to match your real historic date. Once you Save this transaction, open it and use Ctl Y. Here you see the Credit to Grant Revenue and the Debit to AR. It did it For You. Use the Functions. Invoice, by definition, Debits AR, because that is its Function.

 

Likewise, use Vendors menu > Enter the Bill that still is unpaid for its original Historic date and list the Web Hosting here and the Customer (and billable or not). A Bill, when looked at using Journal View or Ctl Y, will Debit Expense and Credit AP for you. The bill = the AP part, because that is the Function's reason to exist.

 

"And these are the same entries I would have used in 2018 to record A/R and A/P."

 

In QB, use the Input Forms. Enter Bill for AP. Create Invoice for AR.

 

"I believe, you are saying that I should booked the outstanding A/R and A/P in the new QB file, indicating the relevant customer: jobs and classes just like I would if I am entering new A/R and A/P."

 

Exactly. When the details matter, you enter the Actual Details. You don't have "generic trial balance" when you have AP and AR. You have Name-related Activity to enter properly.

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Community Contributor **

Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

You are such a lifesaver qbteachment. Now, I get it really well.

 

Many than thanks.

 

Ariiqi.

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

Community Contributor **

Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

Hi qbteachment,

I am sorry to come back to you and the team. I have one last issue that I would like you to clarify and suggest how to approach it.  I successfully entered Open A/R and A/P using the create invoice and enter bill forms per your explanation and instructions (thank you). 

 

Now, I have another issue. How do I enter Opening Balances for current assets and liabilities into the new QB company file without using journal entries (JE)? For example, I have Opening balances for Cash, Prepaid Expenses, employee advances, accrued payroll liabilities, Credit Card liability, and Deferred/Unearned Revenue (also a liability) etc.  I tried the "make Deposit" form but it does not seem to work for me as I do not even know what should go into the "From Account" field of the make deposit form.  My opening cash balances is restricted to funding sources and I would to have details such as donor (customer:job) and classes when I enter this balance. The same case applies to the other opening balances listed herein. I need to enter them with requisite details as well. Could this be the only exception to use the JE or are there better ways of entering these opening balances without using the JE? Obviously, I would want to stay away from the JE.

 

I would appreciate your help. I hope there is a workaround this than using a JE.

 

Ariiqi

 

 

QuickBooks Team

Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

Thanks for coming back, Ariiqi.

 

Let me join this thread and help you with entering the opening balance for your current assets and liabilities without creating a Journal Entry. 

 

To do this, you'll just need to follow the steps provided below:

  1. Go to Accounts.
  2. Click Chart of Accounts.
  3. Click Account and select New.
  4. Choose the correct category and click Continue.
  5. Enter the necessary information and click Enter Opening Balance.
  6. Click OK.

5.PNG

To learn more about recording opening balance in QuickBooks Desktop.

 

In case you need help from a live support, feel free to contact our QuickBooks Desktop Support. They'll be able to guide you through the whole process. Here's how you can contact our phone support:

  1. You can reach them by following these steps:
  2. Go to https://help.quickbooks.intuit.com/en_US/contactus.
  3. Select QuickBooks Desktop.
  4. Choose your QuickBooks for Windows version.
  5. Click Search for something else and enter a topic.
  6. Click the Get Phone Number button to see the support number.

That's should do it. Should there'll be anything else you need or questions about this, feel free to leave a comment below. I'm happy to help.

Community Contributor **

Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

Hi Charles_M,

Thanks for your response but entering opening balances that way will not preserve the level of details I need for these entries. For example, the opening balances for cash would need to be entered with customer: job and program class details (i.e., they need to be tagged to the specific donors and grants with these remaining funds balances as well as the program classes) etc. 

 

Ariiqi

Moderator

Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

You're very welcome, Ariiqi.

 

You can use the journal entry function to record the opening balance. However, you would need to ask more help from your accountant on how to do it. This will allow you to select the correct customer and class details. Here's an article for a reference: Record opening balance.

 

Let us know if you have any questions. We'll be right here to help. 

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

@Ariiqi

 

The Intuit People try to help, but as one of your Peer users that supports QB and has many NFP clients, I am glad to help, too.

 

"How do I enter Opening Balances for current assets and liabilities into the new QB company file without using journal entries (JE)?"

 

You can use JE, but the issue here is Class Tracking. The Class on any JE has to be In Balance. Do not Mix Classes.

 

"For example, I have Opening balances for Cash"

 

Make Deposit; the From Account is the specific Restricted or Unrestricted or Temp Restricted or Committed Equity account, or it is the Liability Balance offset, because this is part of your Fund Balance or Net Assets.

 

"Prepaid Expenses" <== JE is fine, the offset is Equity

 

"employee advances" <== You want this Per Name, as Other Current Asset

 

"accrued payroll liabilities"

 

If you finished 2018 payroll in you old accounting system, the carryover Payroll Liability is generic Liability. Do not mix this with QB Payroll which starts with 2019. There is no YTD for 2018 carryover.

 

"Credit Card liability"

 

Banking menu > Enter Credit Card Charge; it is an offset of Equity. Being in debt reduces your Equity.

 

"and Deferred/Unearned Revenue (also a liability) etc"

 

It matters if this is from Customer Names or not. Example: Sales Receipt for a Landlord to "load security deposits into liability as part of Trial Balance" and then they "Make deposit" selecting All of them, for Jan 1, 2019; they use the line at the bottom left of the Deposit screen for "cash goes back to: and put the Entire Total to Equity = money we already had; the deposit Net = $0. But instead of generic Make Deposit, I need Tenant Named Activities = individual Sales Receipts.

 

"I tried the "make Deposit" form but it does not seem to work for me as I do not even know what should go into the "From Account" field of the make deposit form."

 

From Account = The Right Offset.

 

"My opening cash balances is restricted to funding sources and I would to have details such as donor (customer:job) and classes when I enter this balance."

 

Yes, you need these details. You also can use the Sales Receipt Method, if that helps. Remember that the Make Deposit has the offset at the bottom, so you don't need a JE for anything to do with the Banking amounts.

 

"Could this be the only exception to use the JE or are there better ways of entering these opening balances without using the JE? Obviously, I would want to stay away from the JE."

 

You Avoid JE for anything with Names; not for AR or AP or inventory or QB Payroll or sales or sales taxes. Never Mix Classes on a JE, either. That creates out of balance Balance Sheet by Class.

 

@Charies_M

@GarlynGay

 

You cannot give guidance to a person with Fund Balance Tracking requirements, using Class, by recommending Opening Balance entries. The OBE function is almost always best avoided by all people since that is the Programmer's Trick. It doesn't meet Accounting Regulations for nearly all people, and especially it doesn't meet the Reporting requirements of the people that need to follow GAAP, GASB or FASB.

 

Please avoid answering the topics on Fund Balances, Restricted Fund accounting, and simply NFP needs until you Thoroughly get some training or at least an overview of the same things I explained here for @Ariiqi or you will be helping people in the wrong direction.

 

The Intuit people that don't really understand Accounting requirements of this nature should never tell anyone how to use the Shortcut tools in QB, because you are all overlooking the most significant Tools and how to use them properly. I am sorry, but you are not Helping when you get this so wrong.

 

It really helps to get and Use the book: Running QB for Not For Profits, by Kathy Ivens.

 

 

Please see my attachment for What Goes Wrong.

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

 @qbteachmt

 

I appreciate your respond to @Charies_M. Such flagrantly uninformed guidance should not pass for expertise.

What these Intuit guys do not seem to understand is that the NFP has idiosyncrasies not built into QuickBooks that would usually require some workarounds or tweaks in order to use QuickBooks for funds management and other specific NFP requirements.

 

 With that behind us, I am finally getting there with my opening balances. Again, lots of thanks for your suggestions. I know sort of know what to do but I would still appreciate if you can clarify a few things below so that I can confidently validate that I doing it correctly. See below:

 

 “You can use JE, but the issue here is Class Tracking. The Class on any JE has to be In Balance. Do not Mix Classes”

 

What does this mean; is there a problem with the class balance?

What if my JE looks like this:

Account                                Debit                Credit                 Class

Checking  Account               10,000                                        

Revenue Account  1                                         5,000               Program 1

Revenue Account  2                                         5,000               Program 2

 

Please note that checking account (bank account) does not necessary have to have a class. If possible, can you please show me by way of journal entries how mixing classes can be a problem?

 

 “Yes, you need these details. You also can use the Sales Receipt Method”

 

Using the Cash Sales Receipt worked well for entering my cash balances. I wanted to do this initially but I had incorrectly assumed that Create Sales Receipts is only used when one is receiving new funds/income without an invoice but it is now clear to me that I can also use it to enter the opening cash balance which preserves all the details such as customer: job, class etc., and it works. Thank you.

  

“You Avoid JE for anything with Names; not for AR or AP or inventory or QB Payroll or sales or sales taxes. Never Mix Classes on a JE, either. That creates out of balance Balance Sheet by Class”.

 

Yes. Other than employee advances and prepaid expenses, I am using the relevant forms (invoices, Bills) to enter my opening balances.

 

However, after entering the A/R balances, I encountered a problem. Apparently, the A/R Ageing Report only displays/shows only the class that was entered at the class field at the very top (header) of the invoice but it does not display/show the multiple classes entered in the invoice column per invoice item. This is really odd as one invoice can have different invoice items pointing to different classes. I have attached a sample invoice with multiple classes. Only the class at the header/top of the invoice, marked in red, is the one that shows in the A/R ageing Detail Report against the total value of the invoice. The classes marked in blue do not show at all and I would like to know why.

 

 

Lastly, on the Funds Accounts on the NFP Chart of accounts in QuickBook: Temporarily Restricted, Permanently Restricted, and Unrestricted etc. How does one balance these accounts each time you receive funds/income and disburse/expenses into and out of these accounts so that they always have correct funds balances? I find it easier to track funds balances using my classes following the structure below:

  1. Temporarily Restricted Funds (Parent)

           Program 1 (Sub-class)

          Program 2 (Sub-class)

          Program 3 (Sub-class)

          Management and Admin General (Sub-class)

 

  1. Unrestricted Funds

           Program 1 (Sub-class)

          Program 2 (Sub-class)

          Program 3 (Sub-class)

          Management and Admin General (Sub-class)

 

 

And so my Restricted and unrestricted funds balances are always generated as balances of my P & L by Class.

 

Obviously, if I can accomplish the same by having the funds accounts in the chart of accounts balancing them each time I receive or disburse funds, I would greatly appreciate. Am I on the right track or not by approaching it this way?

 

Thank you a ton!

 

@Ariiqi

 

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Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

Envision Bal Sheet by Class. You know that Assets = Liab + Equity, and that Net Income is part of Equity. We want Class in Columns.

 

That's why the JE that is Out of Balance by Class is a problem, as I showed in my attachment. Yours is Wrong.

 

Stop using JE.

Account                                Debit                Credit                 Class

Checking  Account               10,000                                        

Revenue Account  1                                         5,000               Program 1

Revenue Account  2                                         5,000               Program 2"

 

Use: Banking menu > Make Deposit for the First $5,000 and Class Track it here. On the Second line, put the Other Class and amount here. Done. Not JE; banking has Banking tool found on the Banking menu.

 

"Please note that checking account (bank account) does not necessary have to have a class.

 

Yes it does; that is part of Assets.

 

"If possible, can you please show me by way of journal entries how mixing classes can be a problem?"

You left your Checking Debit Blank. Once you enable Class, never skip it; there is no way to tell if that was overlooked, or you intend for Unclassified to mean "general" and there should be no Vague assumption and you need a way to find and fix errors = skipped class entirely.

 

"However, after entering the A/R balances, I encountered a problem. Apparently, the A/R Ageing Report only displays/shows only the class that was entered at the class field at the very top (header) of the invoice but it does not display/show the multiple classes entered in the invoice column per invoice item."

 

You see Class at the top = the Default for each line, unless you override each line and Change it. You can see the Bal Sheet by Class in my example is showing AP allocated By Class.

 

"This is really odd as one invoice can have different invoice items pointing to different classes."

 

Yes, that is provided for; that is why you Class each detail line. I don't see an attachment; sorry.

 

"that shows in the A/R ageing Detail Report"

 

Run Bal Sheet by Class; double-click the AR in the class you want to examine. Run AR Aging reports and filter on one class, only, to see only that class balance.

 

"I find it easier to track funds balances using my classes following the structure below:

  1. Temporarily Restricted Funds (Parent) <== You would do this in QB Pro

Because Pro does not provide Bal Sheet by Class. You don't need to Micro-manage Rows in your Premier program.

 

"Am I on the right track or not by approaching it this way?"

 

I recommend the book Running QB for Not For Profits, by Kathy Ivens.

Community Contributor **

Re: Entering Opening Balances - QuickBooks Premier Nonprofit Edition 2019

@qbteachmt

Point taken on avoiding the JE.

Sorry, I forgot to attached the invoice with multiple classes. It is now attached.

As explained before, I tried to run the A/R Ageing Detail by Class Report but it displays/shows only the class that entered in the class field at the very top (header) of the invoice but it does not display/show the multiple classes entered in the invoice column per invoice item. In the document attached, it is only the class marked in red that shows in the A/R Ageing by Class Report and the one marked in blue does not. Please note that the one marked in red is the one entered in the header of the invoice and it is the one that shows in the A/R Ageing Detail by Class Report. The one marked in blue does not show at all.

 

"You can see the Bal Sheet by Class in my example is showing AP allocated By Class".

 

" Run Bal Sheet by Class; double-click the AR in the class you want to examine. Run AR Aging reports and filter on one class, only, to see only that class balance"

 

Yes, I did this and it works but the A/R Ageing Detail by class report does not show multiple classes entered in the details column of the invoices. It only shows the class entered in header of the invoice.

 

 

"I recommend the book Running QB for Not For Profits, by Kathy Ivens."

I just bought this book. Thanks

 

@Ariiqi

 

 

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