Setting up opening balances

These are entered or imported using a special Analysis Code, where both sides DR. and CR. are posted to the Suspense Nominal Account, and use VAT Code 8 (Outside scope of VAT).
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To help with this, a default Analysis Code can be set up when creating a new Data file. This will provide both a Sales and Purchase Analysis Code called ‘O/BAL’.
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The article below has the following sections:

Transferring your opening balances enables you to record a starting position which is not represented by any transactions.
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To ensure the transfer is controlled, you should have a full set of reports from your old Nominal Ledger, particularly the Trial Balance and the Profit & Loss report.
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The balances can be transferred by printing them and entering them manually, or by exporting and importing them.
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The method that you choose will usually be determined by the number of balances that are involved.

Opening Balances in the Sales and Purchase Ledgers are input in the same way as other transactions, but they are analysed to a special ‘Opening Balance’ Analysis Code that posts both the Debit and Credit to Suspense, thus they have no effect on the Nominal Ledger.

Opening Balances on the Nominal Ledger are input after the Customer and Supplier balances. Use Journal entries to do this but not VAT Journals. A Trial Balance should be printed for comparison with the report produced by your old system.
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When you select to enter opening balances, you will in fact enter them in the period prior to your first trading period and roll them forward. This avoids any confusion with the current year reporting.

Because these ledgers do not directly involve your accounts, they are not so critical. However, for the purposes of your business they are just as important ; you must know what the position is regarding outstanding orders and stock levels.
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Sales and Purchase orders, that are unfulfilled when their respective modules are brought on line, can be entered in exactly the same way as new orders.
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If orders are part delivered or part invoiced, then only the outstanding quantity should be entered.
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If you need to enter orders for which the quantity to deliver does not match the quantity to invoice, you will have to process a delivery note or an invoice and post a stock movement or credit adjustment to correct the position.

Opening balances are entered as Stock Movements, with their transaction type set to ‘Opening Balances’.

Opening balances are entered as Miscellaneous for Opening Cost transactions and Sales for Opening Sales transactions.