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How to configure Opening Entries/Balance

By
jheszica
on 3/1/13, 1:20 AM 11,673 views

Hi, Good Day!

Can someone please help me regarding my little problem? I am trying to figure out how can I configure my Opening entries in OpenERP. I'm a bit confused on how to configure this.

Also, I want to ask, does every Journal needs an Opening Balance? for example, does Cash Journal need to have a starting balance?(sorry, I'm not an Accountant:D), and how can I configure this? Thank you in advance for your help guys. God Bless us all

0

michel Guénard

--michel Guénard--
1033
| 5 5 8
VIROFLAY, France
--michel Guénard--

VP operations & finance Social entrepreneur Certified Public Accountant Past Chief internal auditor

michel Guénard
On 3/1/13, 7:16 AM

Opening balances deals with accounts; * A journal* is a formatted method to record the business and financial operations into the appropriate accounts.

In a sense they are specialized by the nature of the transactions to be recorded.

The (almost) universal practice defines several journals:

  • Sales journal
  • Purchasing journal
  • Bank journal
  • (petty) Cash journal
  • Miscellaneous journal
  • Opening (balances) Journal. Other journals can be designed depending onto your needs (credit notes journal for instance).

The Opening (balances) Journal is the sole journal dealing with recording balances of accounts from the previous acounting period (if a previous period exists). In this journal, you will use only balance sheet accounts. OpenErp has a workflow to transfer the balances from one closed period to the next current one. When you start working with OpenErp, you need to record every closing balances (from another system, be it manual or not) into your "new" booking system. To do that you will post these individual balances (your previous balance sheet), using the opening balances journal.

C:\fakepath\OPENING BALANCES CREATION.JPG

Hi, can you give me a step by step tutorial in recording Opening balances... in the Opening Journal.? Thank you very much.

jheszica
on 3/2/13, 9:15 AM
0
Farook
On 2/15/14, 1:22 PM

Dear Jheszica, You can create Opening Entries as explained below

1) Create an Opening Entries Journal: In most of the Chart of Accounts this comes by default. If it's not present, create a journal "Opening Entries Journal" with Type="Opening/Closing Situation". Check the "Centralized Counterpart" option. 1a) create an Account "Opening Expense Account" of Internal Type="Regular" and Account Type="Expense" and set this as the Default Debit Account for the above journal 1b) create an Account "Opening Income Account" of Internal Type="Regular" and Account Type="Income" and set this as the Default Credit Account for the above journal

2) Now go to Accounting->Journal Entries-> Journal Entries and click "Create" to create the opening journal entry

3) Now select Journal="Opening Etnries Journal" and add all your Accounts here with their Opening balances. Make sure you enter the amount in credit or debit columns based on the opening balance type of respective accounts

4) Once all entries are made, save the journal entry and post it. If the opening entries you entered are unbalanced (means sum of credits are not equal to sum of debits), then automatically the balance amount will be posted to the Default Debit Account or Default Credit Account of the Journal created in the first step

Hi Farook, Is it possible to hide OBC account in COA View

Saravanan Sakthivel
on 11/28/14, 4:07 AM
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Kevin McMenamin

--Kevin McMenamin--
804
| 5 2 6
Auckland, New Zealand
--Kevin McMenamin--
Kevin McMenamin
On 3/7/13, 4:00 PM

You can put in your opening balances by using a general journal - see menu item accounting / journal entries . journal entries.

This way you are not limited to only balance sheet accounts - for example, you may be part way through the year and want to do a journal for each month including expense account balances.

The only tricky part is receivables and payables. In OpenERP these are part of the GL (rather than a separate ledger like most systems) so in your journal you will need to include the relevant partner account.

Kevin could you explain "This way you are not limited to only balance sheet accounts - for example, you may be part way through the year and want to do a journal for each month including expense account balances." as opening balances are restricted to begin a new accounting period with "on going" items.

AD LIBITOM, michel Guénard
on 3/8/13, 9:40 AM

If you "go live" at the start of the year, then all you need to create are your opening balance sheet accounts. Howver, if you go live during the year you will want to have expense account data in their as well. You could so this by data conversion if you want the detail, or you could do by journal entry if all you want is balances. You can use a general journal to do this - effectively your journal is the trial balance movements for each period.

Solnet Solutions Limited, Kevin McMenamin
on 3/10/13, 4:49 PM

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Asked: 3/1/13, 1:20 AM
Seen: 11673 times
Last updated: 3/16/15, 8:10 AM