Add tracking to your conversion balances
Although Xero doesn’t offer tracking on conversion balances, you can use manual journals to achieve the same effect.
Here is a worked example for XYZ Ltd that's converting to Xero at 1 April 2012. It has 2 branches (Appleville and Orangetown) to be set up as tracking categories.
Appleville and Orangetown's trial balances as at the end of the current financial year look like this:
Follow these steps:
Enter the combined conversion balances into the conversion balance screen. You can enter these while you're setting up your organisation in Xero or after.When creating journals to assign tracking, the balances you enter should not include any amounts already entered as outstanding invoices or bills that include tracking as at conversion date.
In the Settings menu, select General Settings, Tracking, then add your relevant tracking categories.
Create a manual journal dated the day before conversion date, in this case 31 March 2012. The effect of this journal is to reverse the conversion balances, then repost them including tracking splits.
- (Optional) Enter comparative balances. You can't apply tracking to these comparatives.