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author's profile photo Former Member
Former Member

Clearing the opening balance account

Hi experts,

I would like to ask your suggestions on how you can clear the opening balance gl account and what drawer should it be placed? For example, after the inventory beginning balance has been uploaded and debited to an inventory gl account under the assets drawer, what gl account should I used to offset (credit) the balances. Should I used an inventory suspense beg. balance gl account under assets or a temp gl account like SAP opening balances under Equity drawer? and how can I clear those opening balance accounts?

Thanks in advance,

Maria

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3 Answers

  • Posted on Dec 26, 2013 at 12:36 PM

    Hi Maria,

    Yes, you are right. You should use an "Opening Balance" GL account of clearing nature under Equity Drawer and use this account for Opening Balance Transfer. Similarly for year end closing you should have an account with name "Closing Balance" Account. Both of these accounts should show zero balance when the process is done.

    Regards,

    Azeem

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 30, 2013 at 08:49 PM

    Hi Maria,

    If your all opening balances are uploaded correctly, the opening balance gl account should be cleared automatically.

    Thanks,

    Gordon

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    • Former Member Former Member

      In Your case:

      JE:

      324000 SAP Go Live Inventory Suspense Acct $107,100 (Credit)

      141000 Inventory $107,100 (Debit)

      While entering OB for Inventory account, replace 141000 with 324000 and this would make the balance of your offset account zero.

      Thanks,

      Joseph

  • author's profile photo Former Member
    Former Member
    Posted on Jan 11, 2014 at 10:16 AM

    Hi Maria,

    You can open the OB clearing account under any drawer as at the end of importing the OB, the clearing account should be zero.

    Now, in your case, after entering OB for stock, the JE would look like:

    Stock --- Dr

    OB Clearing account--- Cr

    To clear the amount in OB clearing account, when you post the OB of GL, replace the inventory account by OB clearing account, as a result, the value which was credited in the OB account when you posted the stock opening, will get debited with the same value once you post the GL balance and thereby making it zero.

    Hope this helps.

    Thanks,

    Joseph

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