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How do I enter outstanding checks from prior FY and old accounting system.

We started QB July 1, 2013 with our new FY.  We had outstanding checks from the old system.  How do I record those?  How do I add the cash into the bank account to cover those checks that are outstanding so I can reconcile the bank statements?
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Best answer 12-10-2018

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BRC
Established Community Backer ***

Enter the opening balance in the bank account as of a sta...

Enter the opening balance in the bank account as of a statement ending date on or before your QB start date.
Then enter everything that is outstanding in your bank account register. everything which will eventually clear.

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BRC
Established Community Backer ***

Enter the opening balance in the bank account as of a sta...

Enter the opening balance in the bank account as of a statement ending date on or before your QB start date.
Then enter everything that is outstanding in your bank account register. everything which will eventually clear.

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Thank you

Thank you
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I was wondering if anyone can give me more detail on wher...

I was wondering if anyone can give me more detail on where you enter the prior year outstanding checks.  I entered the ending cash balance from the trial balance in the opening balances but where do I enter my outstanding checks as of 12/31.  thanks
BRC
Established Community Backer ***

Enter them as checks using the check form or the bank acc...

Enter them as checks using the check form or the bank account register, just like other checks.
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I think the correct way to enter the outstanding checks i...

I think the correct way to enter the outstanding checks is to enter a beginning cash balance that equals your outstanding checks on 12/31, use a journal entry, DR CASH AND CR SUSPENSE ACCOUNT (set this account up as an expense account). Then write the checks to the vendors, also on 12/31 so that the net effect is zero. In the check use the SUSPENSE ACCOUNT as the expense account.  The checks will carry over to your new year but not the expense because it was already counted in a prior year.
Established Community Backer ***

@JustAQbooksUser You don't Debit anything, because you h...

@JustAQbooksUser

You don't Debit anything, because you have Banking menu > Write Check. You don't want Suspense, and suspense, if you did you this, is not a P&L account. You enter Checks outstanding as against Retained Earnings or Owner Equity, if you want to include them in the Banking funds to start your transition into QB. Or, you don't even include them in your initial Amount to deposit.

Example: The bank shows I have $1,000, but I know I spent $200 on a check that has not yet cleared. I make an initial deposit of $1,000 as Equity. I then enter Banking menu > Write Check to the vendor name, for that Historic Date, and put Equity as the "expenses tab" reason here.
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The default Opening Balance Equity account, instead of Ow...

The default Opening Balance Equity account, instead of Owner Equity or any other equity account, is useful to enter all the opening balances when you are setting up new books for an existing co.  It must be zero when you are done
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OBE is used by the program when you use one of the generi...

OBE is used by the program when you use one of the generic functions that never asks you for the actual offset. Example: Adding a bank account and Also putting in the value = you just made it up out of thin air, so the programmer's flow that to OBE. Instead, you can add Accounts. Then, make your own Deposit entry and use the real Equity, not OBE. When you are making your own actual entries, you don't bother to use OBE. Why would you also use OBE, when you know it has to be taken to zero, later? Why not handle that data once = post to the right Equity, in the first place and save handling OBE at all.
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I like to keep all the opening entries separate, no matte...

I like to keep all the opening entries separate, no matter what method was used to record them, including the automated ones, That way I can be sure it all balances out to zero. That's why I use OBE.
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I never use OBE if I intend to make my own entries, becau...

I never use OBE if I intend to make my own entries, because I never want to handle data twice.
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I get information from clients and I enter from their che...

I get information from clients and I enter from their check stubs and deposit receipts.  We were usng CSA and had to switch to Quickbooks.   I have outstanding checks that I have and some are dated back to 2014.  How do I enter these so that I can have these rolling forward each month.  

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Sorry this was supposed to be a question.

Sorry this was supposed to be a question.
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Re: Enter the opening balance in the bank account as of a sta...

Hello,

 

I am doing the same thing regarding outstanding checks.  I have the trial balance opening figures the checking balances to the adjusted balance per bank statement (less outstanding checks)

I entered the opening balance from the trial balance, where I am losing my mind is when adding back in the outstanding checks should I expense to open equity balance or how it entered originally?

I know this is basic bookkeeping I am just so overwhelmed with work I cannot think straight.

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Re: Enter the opening balance in the bank account as of a sta...

 

Oops  this was suppose to be a question :)

Established Community Backer ***

Re: Enter the opening balance in the bank account as of a sta...

You don't use Opening Balance Equity, because you know this is Real Equity or you know this is real expense or whatever got paid for. It matters if you are doing this transition in the fiscal year yet to be reported, or in the prior fiscal year. Prior year income and expense roll into Equity, for both cash and accrual basis entities. An uncashed check from the prior year, now that this is Dec 2018, might simply be moot, now. An uncashed check from the prior month, in the current fiscal year, would be "enter that check" as regular check with details. A check from Dec 2018, transitioning to QB for Jan 2019, means your trial balance would not include the check as expense or equity, so that you can put on the check the details. Or, you want it to show it reduces Real Equity. Not OBE. Example:

I see the bank statement for Dec 2018, shows $1,200 for bank balance, and I also know I have two uncashed 2018 checks to enter, $100 each. So I make a  deposit as $1,200 from Equity dated Jan 1, 2019. Now I enter those two checks dated historically, and enter what applies (it can be expense or equity, since expense already ends up in Equity on Jan 1, anyway). Now I am managing my available cash per my perspective effective on Jan 2019.

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Re: Enter the opening balance in the bank account as of a sta...

Thank You!

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Re: Enter the opening balance in the bank account as of a sta...

I am also wondering how to handle uncleared cheques from the prior fiscal year and old accounting system. 

I have entered the Trial Balance from the old system in the new system (QBO) on the last day of the fiscal year. 

These balances already take into account the uncleared cheques, because those cheques were posted in the prior period in the old system. 

Wouldn’t adding the cheques again, in the new system, have the net effect of adding them twice?

Do you need to adjust the opening balance entry so that this doesn’t happen?  Or can those cheques just be ignored and the transactions Excluded when the cheque shows up in the bank feed? 

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