How do I enter opening balances in the General Ledger for a new or newly converted company?
The opening balances for the control accounts (Debtors, Creditors, Inventory and the Bank Accounts) need to be entered in via a journal or Enter Opening Year Balances or Enter Conversion Date Balances. Ensure the entry balances by using either the suspense account, or the balances for all accounts taken from a Trial Balance from their previous system. If the suspense account has been used, a second journal can be processed later to correctly split the amount over the appropriate accounts.
The opening bank reconciliation balance will need to be keyed in for all bank accounts, and must match the opening general ledger balance of the bank account – except- where there are un-presented items which are already part of the general ledger balance. In that case the opening bank reconciliation balance will not reflect those entries, and the entries themselves will be keyed in via Cashbook entries and the contra account will be the Bank Account (note the software will issue a warning about the Bank Account being a control account – but it should be ignored in this instance).
The Closing Inventory balance for the Profit and Loss must be entered in via Enter Opening Year Balances or a journal dated the end of the prior financial year and with the contra being the Purchases account. Any Work In Progress - WIP- should be treated just the same as Inventory - with an Opening and a Closing account in the Profit and Loss section of the chart, and a WIP account in the Asset / Balance Sheet section of the chart.