Enter opening balances

Bring in what customers owe you, what you owe suppliers, and the money in your cash and bank accounts on the day you start.

Opening balances are the amounts you carry in from your old books: what each customer owes you, what you owe each supplier, and the cash and bank you hold. You enter each one on the customer, supplier or account itself, and the Opening Balances screen lists them all in one place.

Before you begin

• Get a list of balances from your old system or accountant, all as of the same date.
• Use the day before your first transaction in EloERP as the opening date.
• Add your bank accounts first. See Set up payment methods.
• You need permission to add customers and suppliers, and to open Accounts → Accounting → Opening Balances.

Where to find it

• The register of all opening entries: Accounts → Accounting → Opening Balances.
• Customers: Sales → Customers → All Customers.
• Suppliers: Purchase → Suppliers → All Suppliers.
• Bank accounts: Accounts → Banking → Bank Accounts.
• Cash and other accounts: Accounts → Accounting → Chart of Accounts.

Choose the default offset account

Every opening balance has an "other side". By default it is Opening Balance Equity (account 3100).

1. Open Accounts → Accounting → Opening Balances.
2. In Default opening balance offset account, keep the automatic choice or pick the account your accountant prefers, such as owner's capital.
3. Click Save Default.

What customers owe you

1. Open Sales → Customers → All Customers and click Add Customer, or open an existing customer.
2. Under Ledger Settings, switch on Create Ledger in Accounts. The opening balance cannot be entered without it.
3. In Opening Balance, choose DR (the customer owes you) or CR (you owe the customer) and type the amount.
4. Set As of to your opening date.
5. Leave Opening Offset Account on Default and click Save Customer.

What you owe suppliers

1. Open Purchase → Suppliers → All Suppliers and click Add Supplier, or open an existing supplier.
2. Open the Business Settings tab.
3. Type the amount in Opening Balance (Rs).
4. In Balance Type, choose Credit — We owe supplier or Debit — Supplier owes us.
5. Set Opening Balance As of to your opening date.
6. Leave Opening Offset Account on Default and click Save Supplier.

Money in the bank

Enter it on the bank account: Opening Balance, Balance Type (Debit for money in the account) and Opening Date (as of). See Add your bank accounts.

Cash in hand and other accounts

1. Open Accounts → Accounting → Chart of Accounts.
2. Click the account, for example Cash in Hand, to open Edit Account.
3. Type the Opening Balance and choose the Balance Type: Debit for cash, other assets and expenses; Credit for loans and other liabilities.
4. Click Update.

Check your opening entries

The Opening Balances list shows every opening entry, including opening stock, with its voucher, date, entity, offset account and amount. Filter by type or date, or search by voucher number.

• View shows the debit and credit lines.
• Reclassify moves the offset side to another account. The customer, supplier or inventory side does not change.
• Delete removes an opening balance. Opening stock is deleted from the Opening Stock screen instead. See Enter opening stock.

What happens in the books

Each opening balance is a balanced voucher. A customer's DR balance debits the customer's ledger and credits the offset account. A supplier's credit balance credits the supplier and debits the offset account. A bank or cash balance debits that account. When all balances and opening stock are in, the offset account holds the net worth you brought in, and the trial balance agrees.

Common questions

I cannot type in the customer's Opening Balance. Switch on Create Ledger in Accounts first.

The opening balance is locked. Once a customer, supplier or account has transactions, its opening balance cannot change. Reverse those transactions first, or post a journal voucher for the difference. See Journal Voucher (JV).

I used the wrong offset account. Use Reclassify on the entry in the Opening Balances list.

Do I enter the bills behind a customer's balance? No. One total per customer is enough.

See Opening Balances for the full screen.