Beginning transactions provide a way to account for transactions made prior to starting Sage 50 that have not yet cleared the bank (not appeared on the bank statement). They are primarily used to resolve unreconcilable differences during the first account reconciliation.
Reconcile the account. How do I do this?
If you just started entering data in Sage 50, if this is your first reconciliation of this account, and if you have a nonzero unreconciled difference, you may need to enter beginning transactions to resolve the reconciliation.
Beginning transactions should include each of the following criteria:
Enter the date when the outstanding transaction took place. The date must be in the current or previous accounting period.
Beginning transactions are typically dated prior to the general ledger beginning-balance date (usually just prior to the first day of the first period when you are entering data in Sage 50).
When you are finished entering beginning transactions, select OK.
Each beginning transaction will appear in either the Checks and Credits or Deposits and Debits section and be added to the Outstanding Checks or Deposits in Transit totals.
Do not select the Clear check box next to these items (since they were not listed on the bank statement). When you reconcile the next monthly statement (the following period), select the Clear check box when the bank statement indicated that the transactions have cleared.
Note: Beginning transactions are not posted to the General Ledger. They are used only when initially reconciling an account. Once you have reconciled an account in two or more periods, the beginning transactions should be cleared.
When you have successfully reconciled the account (the unreconciled difference is zero), select OK to close the window.