VanessaVanessa Member Posts: 23
edited June 30 in Accounts Hosted

the opening balance invoice which reckon produces automatically isn't allocated an item just states 'open balance" in description and it shows up under accounts receivable in chart of accounts instead of in Open Balance Equity. (using Hosted 2018) Is this correct or am I doing something wrong?


  • Linda ABCLinda ABC Member Posts: 1,171 ✭✭
    edited June 30
    Hi Vanessa - thats how its intended to work if you are setting up a new file and bringing across balances from another system or period?  - When you also enter a journal for the balances in the Balance Sheet - the value of the total Accounts Receivable should be entered to Open Balance Equity and this should then zero out the amounts that went in with the Opening balance invoices... so if its all been done correctly with Customers and Suppliers - the Open Balance Equity should be zero and each individual Customer and Supplier should have a balance which shows when you run the AR Ageing and AP Ageing reports and shows in Accounts Receivable and Accounts Payable in the balance sheet.  Take care that you use the correct dates on all transactions - this is very important for getting good reports.  eg if moving from one system to another for the new financial year - the Bal Sheet figures from the old system should be entered as the 30th June.. and all the Opening Balances for Customers and Suppliers should either be 30th June or whichever date is correct in terms of Ageing of the outstanding amount.  
  • VanessaVanessa Member Posts: 23
    edited June 2019
    Thank you so much Linda, makes perfect sense on both questions. Really appreciate it. 
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