Entering Account Payable Opening Balances

Overview

Entries for Account Payable Opening Balances can be entered at any time after your Go Live date.

It would be in your best interest to complete these entries within the first month after your Go Live Date.

Depending on the accuracy of your current Account Payable balances, choose from the 2 options below for your payable opening balance entries.

• If your current Account Payable balances are up to date and accurate, prepare a list of current account balances using the date prior to your Go Live Date and use this information for Payable Opening Balance entries.
• If your current Account Payable balances are not up to date and accurate, wait for the Payable Statements and use the statement balance for Account Payable Opening Balance entries.

Follow these steps to enter the Payable Opening Balances.

1. From the General Ledger Manager, select “GL Adjustments” at Top Left.

Figure 1

2. Set the GL Adjustment date to the date prior to your go live date.
   1. In this example the Go Live Date is January 1, 2011. We will use December 31, 2010 as the date for the opening balance entries.

Figure 2

3. On the Account line, select Liabilities | 2100 Accounts Payable

Figure 3

4. On the Sub Account line, lookup the supplier/payable account name.
   1. Use the binoculars to select the account from a list of matching names.
5. In the description box, enter a description for this GL adjustment entry. (i.e. Payable Opening Balance)
   The description is what will be referenced in the accounting reports (i.e. Audit Trail and Account Journals)
6. On the Adjustment - Right Account line, enter the Opening Balance value for this payable account.
7. Click the Add button.
8. If you have additional Payable Opening Balances ready for entry, continue to enter them as shown in Figure 3.
   
   1. If this is the only Payable Opening Balance you enter at this time, move to #9.

If you are entering opening balances from statements, enter the payable opening balances as statements arrive.

Figure 4

All opening balance entries will require an offsetting balancing entry.

9. On the Account line, select Equity | Opening Balance.

Figure 5

9. In the Description Box, enter a description for this GL Adjustment entry.
   The description is what will be referenced in the accounting reports (i.e. Audit Trail and Account Journals)

10. On the Adjustment - Right Account line, enter the value to Balance the Total line for the Left and Right Account lines.

    1. Values can be positive or negative. For negative values enter a (-) either in from or behind the value.

11. Click the Add button.

Figure 6

12. The Final Entry for the Opening Balance must ensure that the Total for the Left and Right Account lines Balance.

13. Verify all entries.

14. Click the Save button at the Top Left.

These values will be entered into the 2100 Account Payable for the Supplier / Payable Account.

1. All entry will be displayed in the payable account from the GL Adjustment Date, Description and Value.

Aged Monthly and/or Individual Invoice entries can be made but require the GL Adjustment Date to be set to the Aged Dated entry. This process can be used for each aged invoice or monthly payable statement balance. If entering aged invoices, use the invoice # in the description field. If entering monthly aged balances, use the Opening Balance & Month in the description field. All Opening Balance Values will be the Outstanding Values as of the day prior to your Go Live Date.

Using this process will be timely and offers many opportunities for errors in entry.