Talk:Establish Opening Balances

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Revision as of 07:51, 8 January 2011 by MJMcKay (Talk) (Explaination of the edits.)

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The talk page contains the original text based on the post https://sourceforge.net/forum/message.php?msg_id=4329875

There are suggestions on how to make this process much easier.

In the sections that follow, I found the use of an opening product problematic as a stocked product used on an invoice left the invoice unmatched with shipping documents. An opening charge seemed to work with fewer complications. The rest of text is very similar to the edits on the main page. MJMcKay 15:51, 8 January 2011 (UTC)


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.

Change Default Bank In Transit Acount

For one bank account that you will use during imports, set the default bank in-transit to the Debtor Clearing account. Note down the Default Account before you make the change.

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)

Create Pre-Payments (Customers) for individual customers that are part of the TB Debtors Amount

If you have prepayments or credits on account, create one payment (AR Receipt) per customer with the unallocated amount. The Business Partner should be the same as the individual payments. The transaction date should be the Opening Date. Complete and post each payment.

In the accounting facts, the following transactions should appear:

DR Debtors Clearing (Payment Amount)
  CR Bank unallocated Receipts (Payment Amount)

Upon completion, be sure to reset the default Bank in Transfer account.

Check Debtors Clearing account balance

Upon completely creating, completing and posting all Invoices (Customer) and pre-payments (customers), 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

The bank clearing account should now have a balance of zero. If not, please review your previous steps.

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.

Summary Outcome

You should now have your opening balances established in Adempiere.