Establish Opening Balances
Initially posted from https://sourceforge.net/forum/message.php?msg_id=4329875
- Create new Account Elements
Create new Account Element for Debtor Clearing, Creditor Clearing, Bank Clearing and Inventory Clearing. All the accounts should be Balance Sheet accounts and the account numbers can be anything.
- Create new Product
Create Product named Opening Product in System. Setup the Product to be Sold, Purchased and Stocked. The Product can be setup to any Product Category. The Default Account for Revenue of the Product should be set to Debtor Clearing and the COGS Default Account should be set to Creditors Clearing.
- Setup Standard Cost for Products in Product Costs Window.
Create Standard Cost record for all Products and update the Current Price field for each and every Product with the closing value of the Product.
- Change Warehouse Default Account.
The Inventory Adjustment Default Account for all Warehouses and Locators should be changed to Inventory Clearing. Note down the Default Account before change.
- Obtain Closing Trial Balance.
Obtain Closing Trial Balance with details for balances of Debtors, Creditors and Closing Stock amounts stated in the Trial Balance. Details should include Invoices, dates, amounts of individual Invoices and Business Partners.
- Create new GL Journal and key-in Trial Balance.
Key-in Trial Balance amounts into respective accounts in GL Journal. However, for the Debtors, Creditors, Bank in Transfer and Closing Stock amounts, select the account to be Debtor Clearing, Creditor Clearing, Bank Clearing and Inventory Clearing respectively. The accounting entries will be as follows:
DR Debtors Clearing (TB Debtors Amount) DR Inventory Clearing (TB Closing Stock Amount) CR Creditors Clearing (TB Creditors Amount) CR Bank Clearing (TB Bank In Transfer Amount)
- Create Invoice (Customers) for individual Invoices that make up the TB Debtors Amount.
Each Invoice should be created with 1 Invoice (Customer) in the System. The Business Partner selected should be the actual Business Partner of the individual Invoices. The Accounting Date is the Opening Date and the Movement Date should be the actual Invoice Date. In the Invoice Line, the Product selected should be the Opening Product created above and multiple lines in the actual Invoice can be summarized into 1 Line. The amount should be the Total Amount of the actual Invoice.
Upon completely keying in the Invoice (Customer), the Invoice should be Completed and Posted. The account posting that occur should be as follows:
DR Debtors (Invoice Amount) CR Debtors Clearing (Invoice Amount)
- Check Debtors Clearing account balance.
Upon completely creating, completing and posting all Invoices (Customer), the Debtors Clearing Account should have a 0 balance.
- Create Invoice (Vendor) for individual Invoices that make up the TB Creditors Amount.
The procedure is the same as for Invoice (Customer) above. The account posting should be as follows:
DR Creditor Clearing (Invoice Amount) CR Creditor (Invoice Amount)
- Check Creditors Clearing account balance.
- Create Payment for individual Unpresented cheque that make up the TB Bank In Transfer Amount
Each unpresented cheque should be created with 1 payment in the System. The Business Partner selected should be the actual Business Partner of the individual payment. The Accounting Date is the Opening Date and the Transaction Date should be the actual Payment Date. The amount should be the Total Amount of the actual Cheque Payment.
Upon completely keying in the Payment, the Payment should be Completed and Posted. The account posting that occur should be as follows:
DR Bank Clearing (Payment Amount) CR Bank In Transfer (Payment Amount)
- Check Bank Clearing account should have a 0 balance.
- Create new Physical Inventory record.
Create new Physical Inventory and key-in individual inventory quantity balance of Closing Stock as per closing stock count. The type of Physical Inventory selected should be Inventory Adjustment. Be very careful on the Warehouse selected for each record.
- Complete and Post Physical Inventory record.
Upon completely keying-in the Physical Inventory, Complete and Post the Physical Inventory. The account posting should be as follows:
DR Inventory (Standard Cost) CR Inventory Clearing (Standard Cost)
- Check Inventory Clearing balance.
Upon completion of all Physical Inventory postings, the Inventory Clearing balance in the System should be 0.
- Revert Default Accounts.
Revert the Default Accounts for Inventory Adjustment for each Warehouse to the original Default Account.
- Deactivate Opening Product.
Select the Active checkbox for Opening Product in the Product Masterdata setup to No.
- Generate Trial Balance from the System.
Generate the Trial Balance as at the Opening Date and compare against the Closing Trial Balance obtained earlier.
- Deactivate Debtor Clearing, Creditor Clearing, Bank Clearing and Inventory Clearing.
Uncheck the Active checkbox for the above in the Account Element setup.