Entering Opening Balances & Items: Difference between revisions
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# Enter the invoice amount | # Enter the invoice amount | ||
# The contra account must be the suspense account which usually is ZZZ999 or 999. | # The contra account must be the suspense account which usually is ZZZ999 or 999. | ||
# Is it advisable to stop and post the batch once per large account because you can then check that the batch total agrees with the balance of the account to prevent mistakes before posting. | |||
[[Image:openingitems.jpg]] | [[Image:openingitems.jpg]] | ||
Revision as of 17:31, 10 May 2007
What are Opening Balances?
Opening Balances are the balance of accounts at the start of an accounting period. When we have new clients moving from their existing accounting system to the NEOSYS accounting system, they need to enter Opening Balances of various heads of the General Ledger which are actually the Closing Balances of the previous accounting system.
For subsequent years, NEOSYS automatically carries the closing balances forward to become the opening balances of the following years - except for P&L accounts which are closed to the Retained Earning account.
How to enter Opening Balances
To enter the Opening Balances, go to Finance > Journal > Journal Entry and select the Opening Balances Journal and follow the below:
- Enter period 1 and the year that you are interested in. Putting any other period but 1 makes no difference since NEOSYS always puts them in period 1.
- Put date 1/1 of the same year. Since opening balances DONT show as entries on the account it doesnt matter what you put here.
- Enter all the account numbers for one ledger (eg bank accounts) into one batch/journal voucher, putting a - (negative sign) for credit balances.
- The last line of the journal voucher "closes" the balance of the journal to the Suspense Account which usually is ZZZ999 or 999. You can check that the last line agrees with the total balance of the ledger before posting to ensure that no mistakes have been made.
- Repeat the above steps for each ledger that has to be opened.
There are some special considerations for posting the opening balances of the General Ledger:
- Replace the a/c number of any control a/c with that of the Suspense Account. NEOSYS will not allow you to post the control a/c balances directly because the control a/c balance will be posted automatically from the postings to the accounts in its subsidiary ledger.
- There is no closing line since the total of the General Ledger A/c is zero if it properly balances.
(the following image needs correcting to show the period and date as per notes above)
What are Opening Items?
When companies move to any new accounting system (referred to as NEOSYS), they usually prefer to enter the outstanding (unpoad) items of the Trade Creditors & Trade Debtors, rather than entering opening balances. Opening items are unpaid invoices and perhaps a few unallocated receipts or payments.
Opening items is a NEOSYS term that corresponds to the "opening balances" of open items accounts in normal financial terminology.
How to enter Opening Items?
To enter the Opening Items, go to Finance > Journal > Journal Entry and select the respective Journal i.e. to enter Client opening items select Media Invoices/Invoices or for Supplier opening items select Purchase Invoices/Media Purchase Invoices and follow the below:
- Enter any period prior to the new first period so they show as opening items in the first period.
- Put any date as of the previous year.
- Enter each invoice details i.e. the invoice number
- Select the Client/Supplier account
- Enter the invoice amount
- The contra account must be the suspense account which usually is ZZZ999 or 999.
- Is it advisable to stop and post the batch once per large account because you can then check that the batch total agrees with the balance of the account to prevent mistakes before posting.
