Accounting Conversion to Studio Designer - from Studio Designer Desktop

Below is guide to be used by users converting from our desktop version of Studio Designer. 

Accounting Conversion to Studio Designer

Find out ahead of time:
1. Is your prior system a cash basis or accrual basis?

This will define how data is entered and what dates to use when posting transactions. 

Select Settings | Maintenance (or Settings | GL Verify depending on your current version)

 

Prepare:
1. Pick a start date

The end of a month is best. It doesn’t need to be the end of the year, but if you can avoid starting in the middle of the month, it will be much easier for you. From this date forward ALL new items and time billing entries will be entered into Studio Designer and only Studio Designer.

Note: If you choose to start in the middle of a month, keep in mind that sales tax reports for the transition month will need to be printed from both systems and combined to capture an entire month.

2. Reconcile all cash and credit accounts through the end of the month
  • If your start date is 9/1, reconcile through your statement that ends closest to 8/31.
  • Print a copy of the reconciliation report and keep it with the rest of the reports that you will print in the next section.
  • Review the transactions that are not cleared and correct any old or erroneous entries.  It's important that we only have correct and current entries.
  • Reprint your reconciliation report if you make any changes.
3. Print, review and correct any erroneous items on the following reports:
  • Accounts Receivable (detail, do not use summary reports)
  • Work In Progress
  • Inventory
  • Accounts Payable
  • Client Deposits
  • Client Retainers
4. Create a list that shows each Purchase Order with the related amounts of Accounts Payable and work in Progress for each like the example below:

A negative amount in the Diff column indicates a vendor deposit amount.

Purchase Orders with no WIP amounts have been invoiced to the client and should be entered following instructions below for Accounts Payable.

 

PO #

A/P

WIP

DIFF

123

525.00

525.00

0.00

125

2500.00

5000.00

-2500.00

126

125.00

0.00

125.00

127

750.00

1500.00

-750.00

138

0.00

7200.00

-7200.00

 

3900.00

14225.00

 

 

5. Print a Trial Balance and review it for accuracy
  • Make any necessary changes and print a final copy which we will use to enter beginning balances into Studio Designer
  • Confirm that all cash accounts and credit card balances equal the Outstanding Bank Balance on the printed copies of the reconciliation reports that you printed in #2 above.
  • If you are reporting on an Accrual Basis, confirm that the totals on your Subledgers balances on the Trial Balance.
  • Compare accounts on the Trial Balance with your Chart of Accounts in Studio Designer and write the corresponding account from Studio Designer on your Trial Balance.

 

Start Entering 

1. Enter ALL items (not yet invoices in your old system) into Studio Designer
  • Create an item in Studio Designer for each item in your prior system that has not yet been invoiced to your client.
  • Enter the full purchase cost and the full selling cost for each item. 
  • If the item has been ordered, add it to an order and reference the original order # in the description (optional).
  • We will account for deposits from clients and deposits to vendors in the steps below.
 
2. Enter Accounts Receivable

You will create Activity/Time Billing invoices for each Invoice on your A/R Aging. 

IMPORTANT:
ACCRUAL BASIS: Set your Accounting Date to the last day of the month prior to your Starting Date before invoicing. Be sure to remove the accounting date when you are finished.  (Settings | My Employees | View the Employee | Enter Accounting Date at bottom of the screen at Settings and Save)
CASH BASIS: Date your invoices for your Start Date (or the current date as long as it's within your first month of using Studio Designer)

 

Create one Activity/Time Billing entry for each invoice total.

  • Choose an Activity that posts income to the account “Income Time Billing”. 
  • Choose an employee.  It can be anyone you want for these invoices.
  • Enter the client from your Accounts Receivable report.
  • Leave Group/Vendor/Misc Company Blank.
  • Enter “Prior Invoice # _____ Dated:_______” for the description (fill in the blanks)
  • Type = Calendar, Billing Code = Billable
  • Choose Time Billing for Sales Code.  This will offset the negative income recorded when you entered the A/R balance into Income Time Billing above.
  • The Start, End and Completed dates will be the last day of the month prior to your Starting Date.
  • Enter a Quantity of 1 and Client Rate = Open Balance from the A/R Aging.
  • Make sure that Taxable = NO.
  • Click Save & Close.
  • Change your Filter (top right of screen) to All and View to Time Billing so you can see the entry you just made.
  • Enter “Prior Invoice # _____ Dated:_______” to the right of Description  (center right of screen) and fill in the blanks.
  • Click the box to enter a "check-mark" under Invoice # to select the item and click the Invoice icon at the top of the screen.
  • Repeat for each Invoice on the Customer Balance Detail report
 
3. Enter Accounts Payable: Accrual Basis or Cash Basis 

ACCRUAL BASIS:

  • If the item was entered in #1 above, mark through it on the A/P report.  You don't need to do anything with it here. 

Create one Pending Payment for each line on the Accounts Payable report. Do not enter any amounts for items that were not yet invoiced.  These items should have been entered in Start Entering #1 above.

  • Select Money Out
  • Select Office Payment
  • Payment Code = Print, leave Check # and Check Date blank.
  • Description should be “Prior Invoice #_______PO:________” Fill in the blanks.
  • Enter the Client ID, Vendor Invoice #, Terms, etc.
  • Check Hold if you will not be paying right away.
  • Click New Distribution and choose Cost of Sales for the Expense Account. 
  • Click Save & New.
  • Repeat for each line on your A/P Aging report.

CASH BASIS:

Create one Pending Payment for each line on the Accounts Payable report 

Do not enter any amounts for items that were not yet invoiced.  These items should have been entered in Start Entering #1 above. 

  • Select Money Out
  • Select Office Payment
  • Payment Code = Print, leave Check # and Check Date blank.
  • Description should be “Prior Invoice #_______PO:________” Fill in the blanks.
  • Enter the Client ID, Vendor Invoice #, Terms, etc.
  • Check Hold if you will not be paying right away.
  • Click New Distribution and choose "Cost of Sales" for the account.  
  • Click Save & New.
  • Repeat for each line on your A/P Aging report.

 

4. Enter Vendor Deposits 

Record payments previously made to vendors for items that were entered in Start Entering #1 above:

Note: In the instructions above you created a list of vendor deposits, make sure the amounts you enter now, match the Vendor Deposit list you created.

 

ACCRUAL BASIS:
  • View the Order
  • Select Payment at the top of the screen.
  • Change Payment Account to "Cost of Sales"
  • Check #: If you know the original check # you can enter it here if not, it can be something generic like "transfer" or "bb".
  • The date can be any date prior to your start date  (if you know the actual original payment date, use it).
  • Enter the applicable amounts paid in the Amount To Pay box beside the items, then select "Post Vendor Payment".

 CASH BASIS:

  • View the Order
  • Select Payment at the top of the screen.
  • Change Payment Account to "Cost of Sales"
  • Check #: If you know the original check # you can enter it here if not, it can be something generic like "transfer" or "bb".
  • The date can be any date prior to your start date  (if you know the actual original payment date, use it).
  • Enter the applicable amounts paid in the Amount To Pay box beside the items, then select "Post Vendor Payment".

 

5. Enter Client Deposits (This is all cash received on items that have NOT yet been invoiced.)

The items for these deposits should have been entered in #1 above.

When you enter the items in #1 above, be sure to enter them for the entire selling cost of the item even though the client may have already paid part of it (unless you invoiced the part that they paid).

 

Post a Client Deposit for Amounts Belonging to Items in Progress

  • Select Money In
  • Select Method = Receive and Apply
  • Select Your Client
  • Enter the date prior to your Start Date (if you know the original date, you can use it as long as it's in an open accounting year)
  • If you know the client's check # you can enter it here (or enter something like bb or transfer)
  • Description = Transferred from the prior system
  • Change the Cash Account to Sales Income
  • Enter an "Amount to Apply" beside the applicable item or items
  • Select Post

 

Post a Client Deposit for Amounts Not Belonging to Specific Items

  • Select Money In
  • Select Method = Receive Payment
  • Select Your Client
  • Enter the date prior to your Start Date
  • If you know the client's check # you can enter it here (or enter something like bb or transfer)
  • Description = Transferred from the prior system
  • Change the Cash Account to Sales Income
  • Select Post

These amounts will be added to Funds Available

 

6. Make a Journal Entry to Record Begining Accounting Balances 

On your Trial Balance (Write “Cost of Sales” beside your Accounts Payable balance, "Cost of Sales" beside Work in Progress, “Income Time Billing” beside Accounts Receivable, "Sales Income" beside Client Deposits and/or Client Retainer balances and "Inventory Adjustment" ** beside Inventory.)

  • Select Accounting | Select Journal Entry | Select the + icon to add a new journal entry.
  • Select Adjustments for the Journal field.
  • The Journal Date should be the day prior to your starting date.
  • Choose the account in Studio Webware that is written beside the account on your trial balance.
  • Type BB in the reference and be sure that this is in the reference for ALL account entries.
  • Enter the amount from your Trial Balance.          
  • Enter Prior System Beginning Balances in the Description field and leave Reoccurring List, Client and Vendor all blank (except for Accounts Payable)*.
  • You will click Save & New for each account that has a balance on your Trial Balance.  Click Save on the last entry.
  • Once ALL balances are entered the Journal Total should be 0.00
  • Click Print Entries if you want a printed copy.  Then click Post Entries.

Note: *When entering the Accounts Payable balance, enter a separate line with Vendor and Amount for each bill on the Vendor Balance Detail.  This will help you locate any discrepancy for amounts left in Accounts Payable after all vendors have been paid for converted balances.

**If you have inventory, you will need to enter it through the Inventory Module.  Owned Inventory is entered using the Adjust tab and Consigned Inventory must be placed on orders.  Please refer to the Inventory section. As Inventory is entered through Adjusting, the balance will be moved from Inventory Adjustments to Inventory (asset).

 

7. Enter Bank Reconciliation Outstanding Items

Un-cleared Checks will be entered in Money Out as Office Payments.

  • Payment Code = Manual, enter the original Check # and Check Date (assuming all checks are from open accounting year).
  • The description should be “Prior Outstanding” or can be whatever you prefer.
  • Leave Client ID, Vendor Invoice #, Terms, etc. blank.
  • Click New Distribution and choose your cash for the Expense Account (the same one listed above as Cash).  This makes it so that your actual cash balance is not affected.
  • Click Save & New.
  • Repeat for each un-cleared check on your bank reconciliation that is dated before your Studio Webware start date.
  • When all have been entered, choose the Payment Code on the main Pending Payments list screen and click Post Payments.

 

Un-cleared receipts will be entered in Money In as Miscellaneous Receipts.

  • Select Receive Misc in 1. for Payment Method.
  • We suggest using your company name (or ID entered in Addresses) as the Receive From in 2.
  • Enter the check date, check number and amount.  There should be no uncleared receipts that are dated more than a week or so prior to your Start Date.
  • The description should be “Prior Outstanding”.
  • Income Account should be the same as your Cash Account directly above the Income Account.  Just like with the checks, this makes it so this entry does not affect your actual cash balance.
  • Payment Type is not required, but you can fill it in if you choose.
  • Click Post Payment.

 

Reconcile the positive side of the un-cleared checks and the negative transaction of un-cleared receipts.

  • Select Reconciliation
  • Choose Cash Receipts for the Journal
  • Change your Statement Date to your Start Date
  • Click Reconcile beside the negative entries that you entered for prior un-cleared receipts.
  • Change the Journal filter to Cash Disbursements and click Refresh
  • Click Reconcile beside the positive entries that you entered for prior un-cleared checks.
  • Review the Outstanding calculation at the top right, the Receipts and Disbursements should now match your Reconciliation report and the Bank Balance should match your ending Balance on your most recent bank statement as well as the balance on your prior Reconciliation report.

Note: It is not necessary to completely understand this process as this is the only time that you will ever have to do this.  It will not be an ongoing process. Sales tax reports for your prior period will be printed from your prior system. You are all set to begin using Studio Designer exclusively! 

 

 

 

 

 

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