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.
Note: some balance sheet accounts in Xero cannot have manual journal entries to them, for example: bank accounts, sales tax, accounts receivable and payable – so these will be excluded from the tracking reports.
Here is a worked example for XYZ Inc that's converting to Xero at January 1, 2013. 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 organization in Xero or after.
Go to Settings > General Settings > Tracking. Add your relevant tracking categories.
Create a manual journal dated the day before conversion date, in this case December 31, 2012. The effect of this journal is to reverse the conversion balances, then repost them including tracking splits.
- Enter comparative balances in Settings > General Settings > Conversion Balances > Comparative Balances, if you need to. You can't apply tracking to these comparatives.