¶ Opening Balance
¶ Usage
This screen is used to record the initial quantities and values of items in stock at the start of a fiscal period (or at the beginning of using the system).
It ensures accurate inventory records and financial statements from day one.
¶ Prerequisites
- The user has the necessary permissions to add the opening inventory balance.
- If the General Accounting (GL) module is enabled, account numbers must be configured.
- A valid fiscal year (Year ID) must be present in the system.
- Stocks are defined and active.
- Items and their units of measure are predefined.
- If applicable, batch tracking and sequencing settings are configured.
When you click the “Add” button to create a new opening balance, the following fields appear:
- Year Number*: This field is mandatory to specify the fiscal year for which the opening balances are recorded.
- Inventory Journal Line*: This field is mandatory. By selecting it, you are linking the balance to a specific accounting journal entry in the General Ledger that records the total value of the opening inventory.
Once You Select the Inventory Journal Line
- Amount: Displays the total value of the selected journal line, which should represent the opening inventory value.
- Debit or Credit: Indicates the nature of the accounting entry; whether it is “Debit” (usually increases assets like inventory) or “Credit” (may represent a decrease in inventory or a liability).
After Selecting the Warehouse
- Select Warehouse*: A mandatory field to specify the warehouse where these opening balances will be entered.
Opening Balances – Header Information
In this section, you fill out general details related to the opening balance process:
- Receipt Number: A system-generated or user-defined identifier to track and reference the opening receipt.
- Receipt Date: The date on which the opening balance is recorded. This may be the start of the fiscal year or the date of implementation.
- Warehouse: The warehouse where the opening items are recorded.
- Notes: Any additional remarks explaining the opening process or special cases.
Opening Balances – Item Lines
Click “Add Line” to input item-by-item details:
- Barcode: You may enter the item’s barcode if available, making it easier to search and identify the item.
- Item Code: The unique item code (defined in the “Item Definition” screen).
- Item Description: The full item name/description. It is usually fetched automatically after selecting the item code.
- Unit of Measure: The unit used to measure the quantity (e.g., piece, kg, meter). It is fetched automatically.
- Quantity: The actual quantity of the item to be recorded as part of the opening balance.
- Cost: The cost per unit for the item.
- Subtotal: Calculated automatically (quantity × cost) to give the total value for this specific item.
- Tracking: If the item requires special tracking (e.g., serial numbers, batches, or expiration dates), you may enter these details here.
- Notes: A text field to add any remarks related to the item in the opening balance.
- Actions (Delete): Allows you to delete the line if it was added by mistake.
Once You Save
After filling in the details, click “Save” to record the opening balances in the system.
The system will update inventory records accordingly, including item quantities and values.
If integrated with your accounting system, the opening balance value may be posted to the appropriate accounts in the General Ledger.