This article assumes that you have already entered your opening balances. If you have not, please do that now.

Once you have entered your opening balances, you can enter the individual invoices that make up Unpaid Invoice (Accounts Receivable) and the bills that make up your Unpaid Bills (Accounts Payable).

Entering your unpaid client invoices

We will go through an example of having a single unpaid invoice (#1032) for the amount of $5,000 issued to Bridal Magazine. The original invoice was dated December 15th, 2016 and the due date was January 14th, 2017.

  1. Go to the Invoices page and select the Enter Invoice tab
  2. Client: Select the client- Bridal magazine
  3. Invoice #: The number of the original invoice - 1032
  4. Date: Use the original date of the invoice - December 15, 2016
  5. Due Date: Adjust the due date to what it should be - January 14, 2017
  6. Category: For the Category field, select Accounts Receivable. This step is a very important, so make sure you choose the Accounts Receivable account and not a regular Income account. If you have a problem selecting the accounts receivable account, either click on “Show All Accounts” or start typing in Accounts Receivable in order to reveal the account
  7. Description and Qty: You can fill these fields if you like, but it’s not necessary. For this example, we'll leave it blank
  8. Amount: Enter the total amount of the invoice including tax - 5000
  9. Sales Tax: Do not enter any taxes, since your taxes would have been entered in your previous accounting system and you don’t want to pay taxes twice
  10. Notes: It's not required, but you can leave one if you like - Unpaid bill from previous accounting system
  11. Click Add

This transaction is essentially taking money out of your accounts receivable account that you entered in your opening balance (the general ledger control account) and putting the amount into the accounts receivable subsidiary account. This may sound confusing but doing this will allow Kashoo to track these unpaid invoices in the Aged Receivables report. This also allows you to record the payment against the specific invoice by selecting the Enter Payment tab.

When you finish entering all the unpaid invoices, double check to see that the total of the Unpaid Invoices Report matches the total balance of the Accounts Receivable account in your Balance Sheet report and that they both equal the original amount of the Accounts Receivable from the opening balance.

Unpaid Invoices

  

Enter your Unpaid Supplier bills

The exact same logic applies to the supplier bills, but instead of using Income accounts, you use Expense accounts, and instead of Accounts Receivable, it’s Accounts Payable.

We will go through an example of having a single unpaid bill (#987) for the amount of $3,000 issued to AdWorks Advertising. The original invoice was dated December 21st, 2012 and the due date was February 19th, 2013.

  1. Go to the Bills to Pay page and select the Enter Bill tab
  2. Supplier: Select the supplier- Adworks Advertising
  3. Date: Use the original date of the invoice - December 21, 2016
  4. Terms or Payment Account: Select an Unpaid Accounts Payable account (Note: It doesn’t matter whether it’s “Due on Receipt”, “30 days”, “60 days”, or “90 days”)
  5. Due Date: Adjust the due date to what it should be - February 19, 2017
  6. Category: For the Category field, select Accounts Payable.This step is a very important, so make sure you choose the Accounts Payable account and not a regular Income account. If you have a problem choosing the accounts receivable account, either click on “Show All Accounts” or start typing in Accounts Payable in order to reveal the account
  7. Description and Qty: You can fill these fields if you like, but it’s not necessary
  8. Amount: Enter the total amount of the bill including tax - 3000
  9. Sales Tax: Do not enter any taxes, since your taxes would have been entered in your previous accounting system and you to enter taxes twice
  10. Notes: It's not required, but you can leave one if you like - Unpaid invoice from previous accounting system
  11. Click Add

This transaction is essentially taking money out of your accounts payable account that you entered in your opening balance (the general ledger control account) and putting the amount into the accounts payable subsidiary account. This may sound confusing but doing this allows Kashoo to track these unpaid invoices in the Aged Payables report. This also allows you to record the payment against the specific invoice by selecting the Pay Bill tab.

When you finish entering all the unpaid invoices, double check to see that the total of the Aged Payables Report matches the total balance of the Accounts Payable account in your Balance Sheet report and that they both equal the original amount of the Accounts Payable from the opening balance.

Unpaid Bills

  

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