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How to carry over balances from a previous system to Bookem

When you're switching to Bookem, you might need to transfer balances from your previous system for clients.

This can be done by setting up a payment method called 'Opening Balance' for your accounts to allocate balances to. This approach ensures correct billing for tax purposes. Opening balances should only be allocated using a payment, not by modifying the invoiced amount through line items. This method allows you to handle both positive and negative opening balances on your client's account without any impact on your income and tax calculations. Follow all the steps in this article to ensure you understand the process fully.

Create an opening balance payment method

  1. Go to Settings > Payments & Invoicing

  2. Navigate to Payment Methods in the top bar

  3. Now, click '+ New Payment Method' to create an 'Opening Balance' payment method

  4. In the drop-down, select 'Other' as a Payment method and type 'Opening balance' as the payment method name

Create an opening balance for a client

After creating an opening balance payment method, you can add an opening balance to a clients account.

Here's how

1. Via the client's profile, navigate to the 'Account' tab

2. Click '+Create a payment'

3. Now, complete the 'Payment date', 'Received amount' fields, and then select the 'Opening Balance' payment method. You can also make a note if more information is required about this payment

Next we'll show you how to handle debit and credit amounts.

How to allocate credit or debit to an account

Credit: If a client paid a deposit to you, or has credit that rolled over from another account, you need to allocate a positive amount in the opening balance. You can then choose to allocate it to an outstanding invoice.

Debit: If the client owes you money, the opening balance amount should be negative. It's important to note that negative opening balances cannot be allocated to invoices but will rather be cancelled out by future payments.

Here's a video to show you how:

Apply an opening balance payment to an outstanding invoice

Follow these steps:

1. Via the client profile, navigate to the payment via the 'Accounts' tab

2. Click on the opening balance payment that was previously made

3. Now, click the 'Add invoice' button and find the relevant invoice - select to apply it

Here's a video to show you how:

NOTE: If you make the opening balance payment occur at an earlier date to the statement period, eg 1st November, this will remove that line item from your statement, which starts from eg. 1st Dec

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