Software: Intuit QuickBooks accounting software
When recording the outstanding sales invoices as of the crossover date (usually is the closing date of the last financial year) into the Quickbooks accounting software, you can consider recording every outstanding invoices instead of as a lump sum owed by the customer. For example, Customer ABC owes you 5 invoices with a total of $20,000.00, you may enter all the 5 invoices individually instead of entering $20,000.00 as a whole at the Opening Balance field of the customer profile. By doing so, you can knock off the individual invoice when payment is received from the customer after the crossover date.
First, you create a new Other Charge item from the Item list of the Lists menu. Then, name this item as “Opening Balance” and link it to the “Opening Balance Equity” account. Besides, you use the “Non” GST code for this item as you can record the GST separately into the QuickBooks via a General Journal instead of at the point of entering the invoice. Opening Balance Equity account is a system account which is created by QuickBooks. It is a special account to capture all the opening balances.
When creating the outstanding invoices as of your crossover date, you select the “Opening Balance” item and enter the total amount due of the invoice in the amount field. You can use the original outstanding invoice date as the date of the invoice and also the original invoice number. This information will be shown in the Statement of Account and will also age the receivable correctly.