The following describes how the system creates opening balances as transactions (journal vouchers). The system will balance the opening balance to nil and the opening balance journal vouchers will then update the first balance period of the following year.
- Select the Close accounting period menu item.
- You access Close accounting period. The following fields are relevant:
- Period to be closed
- The system proposes the last period of the year to close.
- Create opening bal
- Set to YES. Note: The system displays a message at the bottom of the panel – “Pressing F8 will interactively check balance for all of your trade accounts.”
- This means that the system will check if your trade accounts are nil balanced. This will be done interactively which means that the system will lock your panel and perform the task while you are waiting. (This might take a while.)
- The system will also reconcile your A/R and A/P with the General Ledger. You will receive an error message if the balance on the control accounts in your G/L does not agree with the balance in the Accounts Receivable and Payable.
Click Execute to perform the balance check and continue with the year end closure.
- You access Close accounting period. Complete the following fields:
- Voucher date
- Enter the voucher date that you want your opening balance transactions to receive.
- Voucher type
- Enter a voucher type that is valid for the C/OB (Create opening balances) routine . The voucher type controls the voucher numbering for the opening balance transactions. Note: The Balance enquiry program displays the opening balance in a separate field. This field is updated as soon as you start entering transactions in a new year. If your prior year is open, then this balance is considered preliminary since you are still allowed to enter transactions that may affect the opening balance.