Trial Balance Journal Entry Cutover

This procedure is designed to guide you in creating your Cutover Journal Entry in Brokerage Engine Accounting. To get started, you'll need to generate a Trial Balance report from your current accounting system, covering the period up to your cutover date.

14 steps
40 seconds

Example of a Trial Balance Report.

Navigate to Brokerage Engine.

Click "Accounting" to navigate to the BE Accounting interface.

Click the "Quick Actions" menu.

Click the "Journal Entry" option.

The Journal Date will default to today's date. The date can be adjusted by typing or using the small calendar icon.

The date of the Cutover Journal Entry must match the agreed-upon Cutover Date, which signifies the transition from one accounting system to another, ensuring that all prior financial data is finalized and accurately transferred for seamless continuity.

The system will automatically generate a Journal Number. For improved searchability, it is recommended to modify this number to "TB JE Cutover".

Select an Account using the dropdown menu.

Do not enter Accounts Receivable, Accounts Payable, Escrow Account, or Escrow Liability Account entries, as these will be handled at a later stage.

Since the Account "5580 - Utilities" is an Expense Account, then it needs to be debited to be increased. On the Debit column, type the final balance displayed on the Trial Balance Report for the Account.

Enter the Debit and Credit amounts exactly as they appear on the Trial Balance Report, using the same General Ledger accounts. Each line of the report will have a corresponding line on the Cutover Journal Entry.

Here's a breakdown of the Normal Balances: 1. **Assets**: Normal balance is **Debit**. - This includes accounts like Cash, Accounts Receivable, and Equipment. When you increase an asset, you debit it. 2. **Liabilities**: Normal balance is **Credit**. - Examples are Accounts Payable, Notes Payable, or Loans. When liabilities increase, you credit them. 3. **Equity (Owner's Equity/Shareholder's Equity)**: Normal balance is **Credit**. - Equity accounts like Retained Earnings and Common Stock are increased with credits. 4. **Revenue (Income)**: Normal balance is **Credit**. - This includes Sales Revenue or Service Income, and credits increase these accounts. 5. **Expenses**: Normal balance is **Debit**. - Expenses like Rent, Salaries, and Utilities are increased with debits.

The entries on the Cutover Journal Entry will be offset by the Equity account "Opening Balance Equity".

The Debits and Credits must balance in order to save the Journal Entry.

Click "Save"

Click "OK"

The entries do not need to be recorded all at once. The Journal Entry can be saved after balancing it, and then additional changes can be made, as needed later.