Practice CS: Entering beginning balances

Alerts and notices

If you are setting up your Practice CS database from scratch or have done a Setup information only conversion you will need to enter your clients' beginning Work In Process and Accounts Receivable balances. This topic provides suggested ways to perform that process.

You can enter Work In Process (WIP) and Accounts Receivable (A/R) balances at various levels of detail ranging from a single balance for each client to the detail transactions that make up the balances. Obviously a single balance requires the least amount of effort while entering the full detail requires the greatest amount of effort. Usually, the best level of detail will be somewhere in between and depend on the amount of detail your firm needs relative to the effort you are willing to expend in entering beginning balances.

Note: This topic presumes you are familiar with the process of entering time and expense transactions, and with entering receipt and adjustment transactions. If not, for instructions in using these processes, see:

Time and Expense Entry WalkThrough

Accounts Receivable WalkThrough

Entering Work In Process Balances

Client WIP balances are entered as WIP transactions in Time and Expense Entry. When entering these transactions, the dollar amount may not calculate to the exact WIP balance. To resolve this, you can override the calculated amount by simply entering the desired amount in the Amount field. Note that the amount will turn red to denote that the calculated amount was overridden and it will not recalculate if you change any other variable on the transaction.

The WIP transactions can be entered at various levels of detail ranging from a single amount for each client to each individual unbilled WIP transaction and many levels of detail in between. The advantages and disadvantages of different levels are shown below.

If you will not be assigning the beginning balances to particular engagements and activities, you may want to use a default engagement and create a Beginning Balances activity to be use. You may also want to create a Beginning Balances staff member if you do not want to associate the beginning balances with particular staff.

Note that whatever method you choose, you may also want to consider separating out the portion of the WIP balance that is progress billing and entering that separately as progress bills in Practice CS. Outstanding progress bills effectively act as a charge against future WIP transactions, and as such create a negative WIP balance. If a client has outstanding progress billings, and you don't enter them separately, then the outstanding WIP transactions are effectively reduced by the progress amounts (i.e., the progress bill amounts are too low, as are the outstanding WIP transaction amounts). Example: If a client has $300 of unbilled WIP transactions, as well as an outstanding $100 progress bill, the net ending WIP balance is actually $200. If you enter $200 as a beginning WIP balance, you have lost the true picture that there is really $300 of WIP and a $-100 outstanding progress bill. If this is a concern, then you should enter the actual WIP transaction amounts and then the progress billing separately, which will net to the proper balance.

For more information on progress billing, see Billing without relieving WIP using progress bills.

Entering Accounts Receivable Balances

Client A/R balances are entered as accounts receivable adjustment transactions in Receipts and Adjustments Entry.

As for beginning WIP balances, the transactions can be entered at several levels of detail outlined below:

Internal notes


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