After I correct last years entries and use the option update starting balances in the new year what happens to the update?

In the budget figure for last year if I delete one of the accounts because I thought I would not need it for the year 2001 before I run update starting balances.

Let us say it was account 305 power. I will not have power in 2001 but will have a budget figure from the year 2000 of $5000 because I made the correction after I closed the year.

Will the system set up a new account (power) as a budget for the year 2001 for $5000 or will it leave off that figure?

Will it be account 305? What if account 305 has been taken by another new account?

Update Starting Balances has no effect whatsoever on budget figures. If you go into the ‘old’ year and go to Accounts | Budgets for Accounts and make changes, USB will not look at or have any effect on these changes. USB looks at the ending account balances only, not the budget amounts. If you make changes to the budget figures for the ‘old’ year after you have begun the ‘new’ year, you must go into the new year and make the changes again.

Update Starting Balances compares the ending account balances of the ‘old’ year to the beginning account balances for the ‘new’ year. If FN cannot find comparable accounts, nothing happens. If you have added an account that affects both years after beginning a new year, you need to take some extra steps. Let’s assume that after beginning a new year, you realize that you acquired an asset in December of the old year.

1. Open up the old year and go to the Chart of Accounts. Add the new asset account, carefully making note of the exact account name and the account’s exact placement in the Chart of Accounts. The account number, which is supplied by FN and appears in parentheses, is not important.

2. Record the transaction to purchase the asset in the ‘old’ year.

3. Open up the new year and go to the Chart of Accounts. Again add the new asset account, being careful to use the exact account name and placement in the Chart of Accounts that you noted in step 1. Even a tiny difference in spelling will cause a problem, so be careful.

4. Now run USB in the new year. FN will find the account in the old year and compare the balance to the new year even though they may have different account numbers.