Forum Discussion

Experienced User

4 years ago

PayPal bank account

Hi, at of the start of our organisation's financial year on Jan 1 2021, we wanted to start recognising our PayPal account balance as a bank account asset in our chart of accounts.

I understand how to process PayPal payments, but not how to set the opening account balance from 1/1/21. I know it's not through Account Opening Balances, as I mistakenly tried this first, misunderstanding this was only to be used when starting the company file anew, and we've been using our company file many years.

I imagine a journal entry is necessary, dated 1/1/21, and that the PayPal balance of $2,512.81 on 31/12/20 would be credited to the new PayPal asset bank account in MYOB. It's what would be a suitable account to debit against which I can't figure out. Could a Good Samiritan please point the way?

Thanks for any assistance in advance.

Tracey_H
4 years ago
Hi DomB

You will end up with that amount under the historical balancing account because it's a double-entry system and you've only entered one side of the entry. The only way to get around this would be to enter a balancing amount against another account. You can do this in the Account Opening Balances window, you need to make sure there isn't an amount left to be allocated in the window.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Tracey_H
Former Staff
4 years ago
Hi DomB

Thanks for your post. You were on the right track with entering an opening balance, just not in the right area. You can enter the opening balance for new accounts in the Accounts Information window>>Opening Balance field:

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
- DomB
  Experienced User
  4 years ago
  Thank you Tracey :) This results in a historical balancing figure on the balance sheet however, which is how I discovered I'd made a boo-boo originally. Is there a way to set a new bank asset account's balance after the conversion date?
  
  I appreciate your original reply muchly.
  - Tracey_H
    Former Staff
    4 years ago
    Hi DomB
    
    You will end up with that amount under the historical balancing account because it's a double-entry system and you've only entered one side of the entry. The only way to get around this would be to enter a balancing amount against another account. You can do this in the Account Opening Balances window, you need to make sure there isn't an amount left to be allocated in the window.
    
    Please let me know if you need further help.
    
    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.