Creating a General Ledger Beginning Balance Journal Entry

Field Name/ Group

What is this?

Business Unit

Journal Date

Enter the date you want the journal entry to post to the general ledger. The date defaults to the current system date but can be changed.

This date is generally the last day of the month prior to your "Live" month on AMS360. Why? This allows you to print financials on AMS360 for...

• a period that includes only the beginning balances from your prior system.

• your first month on AMS360 that excludes your beginning balances.

Journal Memo

Enter a description of the purpose for the journal entry. The default is "Beginning Balance Journal Entry".

Totals

These fields are dynamic and update as you add voucher lines to your journal entry. Before you can post the journal entry the following must be true:

• Debits = Credits

• Balance = $0.00

Field Name/ Group

What is this?

GL #

Choose the appropriate account number from the list. If the account number is sub-divided (grouped) by a particular entity, that type of entity in the GL # required fieldswill become active. Select the appropriate entity from the list.

Conversion Account Entries (Subsidiary Ledgers)

Customer, broker and finance company receivables, broker and employee commission payables, and brokerage, fee, and insurance company payables are entered by entity to their applicable conversion accounts when entering GL Beginning Balance Journal Entries.

Why? Because, when you originally entered these beginning balances to the system accounts, you created subsidiary ledgers for these various entities by entering them by division/entity/customer/policy/invoice number. To create a valid journal entry (debits = credits), these balances were then offset to their appropriate conversion (conv) accounts by division/entity in a reciprocal (opposite) amount.

When you enter directly to the system accounts you must enter by entity, by customer. Further delineating your entries by policy/invoice is optional depending on the level of detail you want in AMS360.

Now, during the GL Beginning Balancephase you must enter these balances (totals by division/entity) again, only this time to the conversion accounts. This creates a valid (debits = credits) journal entry AND brings the conversion account balances to $0.00.

Conversion Account Entries (No Subsidiary Ledgers)

Currently, there is no provision in AMS 360 for entering account balances directly to the system accounts below as a subsidiary ledger.

• 11241 DB Comm Receivable - Insurance Companies

• 11242 DB Comm Receivable - Brokerage Companies

• 21121 DB Deposits Payable - Insurance Companies

• 21122 DB Deposits Payable - Brokerage Companies

• 21125 DB Deposits Payable - Finance Companies

When entering GL Beginning Balances enter the balance of these accounts by division to the following accounts:

Amount

Enter the balance for the account.

Description

Defaults "GL Beginning Balance" but can be changed, if desired.

Business Unit

GL # Required Fields

Required fields are based on the general ledger number selected in the GL# field. When a system account is subledgered (grouped), by one of the entities listed below, you must select the specific entity for that general ledger account balance.

• Customer

• Insurance Co

• Brokerage Co

• Finance Co

• Fee Co

• Vendor

• Broker

• Comm Person

Accounting Basis

How to Handle

Accrual

Your detailed accounts receivable is entered when you post your Customer Beginning Balance journal entry. These entries post to general ledger accounts #11211, #11221, and #11231.

To balance this journal entry you are required to offset the total receivables balance to account #11290 - Conversion Receivables Differences.

Subsequently, when entering your General Ledger Beginning Balance journal entry, the total receivables amount from your source report must be entered to account #11290 to balance the journal entry and offset (clear) the #11290 account.

Cash

When No Late Charges are Posted on the 'Customer' Beginning Balance Journal Entry:

Follow the instructions for Accrual accounting basis.

When Late Charges are Posted on the 'Customer' Beginning Balance Journal Entry:

Your detailed accounts receivable is entered when you post your Customer Beginning Balance journal entry. These entries post to general ledger accounts #11211, #11221, and #11231.

To balance this journal entry you are required to offset the total receivables balance to account #11290 - Conversion Receivables Differences.

For agencies set up on a Cash accounting basis, the late charge amount designated for account #11290 does not post there, but automatically posts to the deferred late charge accounts by business type.

Therefore, to balance/clear account #11290, balance the General Ledger Beginning Balance Journal Entry, and post your income correctly, you must:

• Enter the total receivables amount less late charges to account #11290.

• Deduct the total late charge amount from your general ledger late charge income account.
  
  Why?  Because the total late charges are already posted to the #21480 and/or the #21490 Deferred Late Charge system accounts. As your customers pay the receivable balances, your late charge income will be deducted from the deferred late charge account and posted to the late charge income account at that time.