Entering Opening Balances & Items: Difference between revisions

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== What are Opening Balances? ==
== What are Opening Balances? ==
Opening Balances is the balance of an account 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.  
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.


NEOSYS later posts Opening Balances automatically to new accounting years within the 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? ===
=== 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:
To enter the Opening Balances, go to Finance > Journal > Journal Entry and select the Opening Balances Journal and follow the below:


# Enter any period prior to the new first period so they show as opening items in the first period.
# 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 any date as of the previous year.
# 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 items, line by line and put a - (negative sign) for any Credit items.  
# Enter all the account numbers for one ledger (eg bank accounts) into one batch/journal voucher, putting a - (negative sign) for credit balances.
# The balance of the journal should be put to the suspense account which usually is ZZZ999 or 999.
# The last line of the batch/journal voucher should be posted 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.
 
(the following image needs correcting to show the period and date as per notes above)


[[Image:openingbalances.jpg]]
[[Image:openingbalances.jpg]]


== What are Opening Items? ==
== What are Opening Items? ==

Revision as of 17:09, 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:

  1. 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.
  2. 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.
  3. Enter all the account numbers for one ledger (eg bank accounts) into one batch/journal voucher, putting a - (negative sign) for credit balances.
  4. The last line of the batch/journal voucher should be posted 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.

(the following image needs correcting to show the period and date as per notes above)

Openingbalances.jpg

What are Opening Items?

When companies move to any new accounting system (referred to as NEOSYS), they prefer enter outstanding items of the Trade Creditors & Trade Debtors, rather than entering opening balances. Opening Items are actually a List of Invoices.

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:

  1. Enter any period prior to the new first period so they show as opening items in the first period.
  2. Put any date as of the previous year.
  3. Enter each invoice details i.e. the invoice number
  4. Select the Client/Supplier account
  5. Enter the invoice amount
  6. The contra account would be the suspense account which usually is ZZZ999 or 999.

Openingitems.jpg