Opening Balance in Q6 is to set for the purpose of transferring the account from other accounting system. To do this, it’s better that user obtains a trial balance or balance sheet on hand from the accountant. When this occurs, the last entry in the previous accounts will become the opening balance in the firm's new accounts.
Steps on how to enter Opening Balances
1.Go to Settings > Accounts > Chart of Accounts;
2.Click Actions > Set Opening Balance;
3.Fill the information based on previous Trial Balance;
These balances can be adjusted at a later time, but reports will be affected by inaccurate opening balances.
Fields explained in Opening Balance
1.Opening Balance Date: This date would be called as Conversion Date alternatively in other accounting software, which is defaulted as today’s date in Q6. Once this date is set, user may only input transaction after this date. Otherwise, reminder of “Please make sure transaction date is in the current financial year and later than your opening balance date!”
2.There are four columns in Opening Balance table, which are Name, Debit, Credit and Inactive. And the account list would be sorted based on Account Type. Only Asset, Equity, and Liability Account will be included in the list for setting up opening balance.
3.Name: List of unique Account number and Account name.
4.Debit: Positive numbers with two decimal places only will be accepted in this field.
5.Credit: Positive numbers with two decimal places only will be accepted in this field.
6.Before save the Opening Balance, please make sure Total Debit equals to Total Credit. Otherwise, record won’t be saved.
7.Inactive: Both active account and inactive account would be included in the Opening Balance List.
8.If there is any modification made on Opening Balance, then Opening Balance Date is required. Otherwise, a reminder of “You must select opening Balance Date for your account’s opening balance amount!”
9.User is not allowed to input both Debit and Credit for the same account as it’s said in warning reminder“you cannot have value in both debit and Credit field!”
10.Exit: Once user clicks Exit button, the screen will go back to Chart of Accounts page.