Entering opening balances are important step in accounting setup. You must have all closing balances of your existing Accounting system as Trial Balances; if you don’t have trial balance of all ledger accounts (in Chart of accounts) we have to make right balance in the chart of accounts.
Trial Balance must have Total Debit value = Total Credit value
|
Latest Trial Balance of ABC Company for the year 2015 | ||
|
Ledger Name |
Debit (USD) |
Credit (USD) |
|
Stock A/c |
10,000 |
|
|
Bank A/c |
50,000 |
|
|
Accounts Receivable A/c |
100,000 |
|
|
Fixed Assets (land) |
500,000 |
|
|
Capital A/c |
|
450,000 |
|
Accounts Payable |
|
150,000 |
|
Loan A/c |
|
10,000 |
|
Sales a/c |
|
100,000 |
|
Purchase A/c |
50,000 |
|
|
Total |
710,000 |
710,000 |
For Example ABC Company having simple trial balance as below
ABC Company having Stock in Hand with following Details
Stock in Hand (Closing Stock for the above trial balance)
|
Product Name |
Unit Cost |
Qty |
Total Amount |
|
Product A |
100 |
10 |
1,000 |
|
Product B |
100 |
10 |
1,000 |
|
Product B |
800 |
10 |
8,000 |
|
Total Stock Value |
10,000 | ||
Vendor (Accounts Payable closing balances)
|
Vendor Name |
Closing balance (Credit Balance) |
|
Vendor 1 |
50,000 |
|
Vendor 2 |
100,000 |
|
Total (AP) |
1,50,000 |
Customer (Accounts Receivable closing balances)
|
Customer Name |
Closing balance (Debit Balance) |
|
Customer 1 |
50,000 |
|
Customer 2 |
50,000 |
|
Total (AR) |
1,00,000 |
Bank A/c (closing balances)
|
Bank Name |
Closing balance (Debit Balance) |
|
Bank 1 |
30,000 |
|
Bank 2 |
20,000 |
|
Total |
50,000 |
Based on the above sample data, the help manual will be explained.
Prerequisite:
1. All masters should have created for vendor , customer, Item, Bank, Ledger Accounts and Locations
2. Should have configured all the Posting groups and Posting setups
3. Must have trial balance with all closing balances of Customer, Vendor, Item and Bank
Step 1.
Go to Home > Account > Transactions > Journal Voucher > Add New
Select the Voucher Type as “Open” as shown in the picture. If you have business group wise trial balance then select the respected one in the “Business Account Group”, otherwise leave it as it is.
The Default Business Group will be accounted for opening balance entry for ledgers.
Important Note: We can enter or input all ledgers accounts which are not directly related with Customer, Vendor, Item and Bank through the Journal Voucher entry form.
Now, we can enter the closing balances of all Ledger Accounts except the below
1. Accounts Payable a/c
2. Stock A/c
3. Accounts Receivable A/c
4. Bank A/c
As per our sample Trial Balance accounts in single voucher entry (see the below picture).
We have entered all the opening balances but it shows the difference value around $ 10,000 Credit balance, with this system will not allow you to post.
So, we have to post the difference value in the “Temp Asset Ledger account” as shown the below picture.
Step 2:
Go to Home > Settings > Opening Entry > Customer Opening Entry > Add new
Customer (Accounts Receivable closing balances)
|
Customer Name |
Closing balance (Debit Balance) |
|
Customer 1 |
50,000 |
|
Customer 2 |
50,000 |
|
Total (AR) |
1,00,000 |
Here we can enter all the customers opening balances (as per our sample data),
Important Note: we have to post the difference Value to Temporary Asset a/c at Temporary Account field in the header.
Step 3: Go to Home > Settings > Opening Entry > Vendor Opening Entry > Add new
Vendor (Accounts Payable closing balances)
|
Vendor Name |
Closing balance (Credit Balance) |
|
Vendor 1 |
50,000 |
|
Vendor 2 |
100,000 |
|
Total (AP) |
1,50,000 |
Here we can enter all the Vendors opening balances (as per our sample data),
Important Note: we have to post the difference Value to Temporary Asset a/c at Temporary Account field in the header.
Step 4: Go to Home > Settings > Opening Entry > Item Opening Entry > Add new
|
Product Name |
Unit Cost |
Qty |
Total Amount |
|
Product A |
100 |
10 |
1,000 |
|
Product B |
100 |
10 |
1,000 |
|
Product C |
800 |
10 |
8,000 |
|
Total Stock Value |
10,000 | ||
Here we can enter all the Item opening quantity and value balances (as per our sample data),
Important Note: we have to post the difference Value to Temporary Asset a/c at Temporary Account field in the header.
Step 5: Go to Home > Settings > Opening Entry > Bank Opening Entry > Add new
Bank A/c (closing balances)
|
Bank Name |
Closing balance (Debit Balance) |
|
Bank 1 (XYY) |
30,000 |
|
Bank 2 (YXX) |
20,000 |
|
Total |
50,000 |
Here we can enter all the Bank opening balances (as per our sample data),
Important Note: we have to post the difference Value to Temporary Asset a/c at Temporary Account field in the header.
It’s all done.