Unincorporated year end journals

Where our clients have more detailed bookkeeping for partnerships and sole traders, they may have specific nominal codes for movements in the capital and current accounts such as capital withdrawn or drawings. At each period end, these will need to be cleared into the main capital and current nominal ledger codes to show the correct opening balance for the following year. However, if this journal is processed at the year end of the relevant period, it will incorrectly change the accounts to show no movements for that period (as the nominal codes for drawings, etc have been zeroed). The correct treatment would be to post the journal in the client's records on the first day of the following period. Therefore when (and if) we provide closing journals (or opening balance adjustments) to the client, we need to provide two sets in these circumstances, one dated in the period and one (the clearing down of capital and current balances) dated the first day of the following period.

We do have clients that post these adjustments themselves and post them (incorrectly) in the period, we will need to reverse these in Silverfin also in the period concerned. This is straightforward and you simply need to obtain the journal from the client, reverse it (using Excel if possible) and then in the Adjustments screen for that client, Select Download/Upload, Upload, browse to Excel file and import. Make sure you correctly format the Excel beforehand (a template for this can be downloaded from the above Upload screen. You can of course manually input the journal if that is easier.

If this is the first period in Silverfin for that client, you may need to process this adjustment into the previous period to ensure that the trial balance and (in some circumstances) the accounts correctly state the capital and current accounts movements.