All new VRP customers must create a location journal entry to move the beginning account balances of your balance sheet accounts to a location (Trust or PM). This journal entry is based on your balance sheet amounts before your go-live date (date you begin pushing VRPlatform transactions to QBO). This ensures that all beginning account balances are put to the proper location, and when you close your books at the end of the month, all balances are designated a location in your Balance sheet. The net income amount on the Balance Sheet (populated from your income statement) before your go-live date is not relevant, and does not need to be assigned a location. See below for all accounts to designate to the TRUST location. The remaining accounts should go to the "PM" location. Every account on your balance sheet needs to be assigned a location.

The accounts to assign a TRUST location should be as follows:

Special considerations for Accounts Receivable (AR) and Accounts Payable (AP):

If there is a balance in the accounts receivable or accounts payable total that belongs to the PM, this amount must be broken out. If this is the case, there would be multiple line items for AR or AP, two lines for the PM (one specified with a location and one unspecified without a location) and two lines for the Trust (specified and unspecified). The total would add up to the total account balance on your balance sheet as of your journal entry date.

In addition, AR and AP must have a name associated with the entry (see the Guideflow link below). For accounts receivable, you must have a customer name in the journal entry, which you can create (Customer - Location), and for accounts payable, you must have a vendor name (Vendor - Location). It does not have to be broken out by detail as it is only the amount that is being transferred to the location. The detail will remain in in the account.

To clarify common questions/issues:

If you are using the attachment below as an example, and the entry you are recording is not reducing the unspecified balance to zero, just reverse the debit and the credit amounts in the entry.

Watch the following Guideflow for further step-by-step instructions.

See the attachment below for an example of the balance sheet before the entry, the journal entry, and the balance sheet after recording the journal entry. In the example provided, the trust liabilities accounts were from a client who was switching from the balance sheet method to the location method (current best practices). Do not be alarmed when you do not have these accounts in your beginning location journal entry as a new customer.