# Take on Balances
**HOW TO TAKE ON BALANCES FROM EXISTING BOOKS**
When changing accounting packages, there are balances that needs to be carried over from the old package to the new package (Huge ERP).
In order to do this you will have to meticulously follow a series of steps and be in possession of the following documents:
Bank Reconciliation Statement
Trial Balance
Age Analysis for both Creditors and Debtors
Stock evaluation.
It is vital to do the Take On at either year or month end, never at the middle of the month.
The very first entry into Huge ERP must always be the stock take on balance. You only have one opportunity to do this as the system will not allow you to backdate any transaction after this. For this Stock take on you need to change the Credit account of the Stock Adjustment Level GL link from Cost Stock Adjustment to Take On Suspense. After doing the first transaction change the GL link back to the original Cost Stock Adjustment. All these transactions must be captured on the last day of the chosen period (either month or year- end).
Step 1 – Stock Take On
> Configuration >General Ledger Links >GL Links Setup>Stock Adjustment Level>Amend (Credit-account should be changed from Cost Stock Adjustment to Take On Suspense)
NB!!!! This account change is only for the very first stock transaction and after this it should be changed back to Cost Stock Adjustment.
Step 2 – Debtors and Creditors take on.
Step 3 – Look at the bank statement, check for post–dated cheques and outstanding deposits to work out your cash balance.
Step 4 – Do a General Ledger Journal of the pre-adjustment trial balance of steps 1-4.
Step 5 – Capture the full trial balance as of the last day of the period on old books as a General ledger Journal
To put all of this into practice here is an example to work on. Let’s assume the client’s books reflect the following items on the last day of the financial period.
Stock
| Stock Items
| Units
| Price
| Total
|
| Item 1
| 5
| R50.00
| R250.00
|
| Item2
| 5
| R50.00
| R250.00
|
|
|
|
| R500.00
|
| Debtors
| 60
| 30
| Current
| Balance
|
| Debtor1
| R100.00
| -R50.00
| R150.00
| R200.00
|
| Debtor2
| R200.00
| R200.00
| -R200.00
| R200.00
|
|
|
|
|
| R400.00
|
| Creditors
| 60
| 30
| Current
| Balance
|
| Creditor1
| -R200.00
| -R200.00
| R100
| -R300.00
|
| Creditor2
| R500.00
| R500.00
| R200
| R1200.00
|
|
|
|
|
| R 900.00
|
| Current Account
| Opening Balance
| R1000.00
|
|
| Outstanding Deposits
| R200.00
|
|
| Outstanding Cheques
| R200.00
|
|
| Cash Balance
| R1 000.00
|
|
|
|
|
| Petty Cash
| Opening balance
| R200.00
|
| Description
| Debit
| Credit
|
| Stock
| R500.00
|
|
| Debtors Control
| R400.00
|
|
| Creditors Control
|
| R900.00
|
| Bank
| R1000.00
|
|
| Petty Cash
| R200.00
|
|
| Rent Paid
| R300.00
|
|
| Stationery
| R200.00
|
|
| Vat Control
|
| R100.00
|
| Sales
|
| R500.00
|
| Accumulated Profit
|
| R1100.00
|
|
| R2600.00
| R2600.00
|