How to Correct an Opening Balance?

[Former Member]

Hi everyone,

How can we change an opening balance for a particular GL account? For example, the beginning balance for Prepaid Rent is $100 on Dec. 31, 2007 and it was already uploaded in SBO2005 as an Opening Balance for January 01, 2008. And it was found out that the Prepaid Rent for December 31, 2007 should be adjusted to $120. The question is, how can this be adjusted in SBO 2005?

Thanks,

Malu

[Former Member · Accepted solution]

Ana,

You cannot post JE to reverse OB entry. You have to again do OB entry with the difference amount to balance.

Vikram

[Former Member]

Hi Ana,

what you need to do is pass another Opening Balance for that account with the value $20 to it, suppose you want to make the openeing balance of a account from 100 to 60 then you need to pass the opening balance with -40 (negative amount).

I hope this helps you out

regards,

Shreyas

[former_member583013]

Malu,

First and foremost, you need to reverse the original JE from Jan 1st and then create a new one as of Dec 31st.

Regards

Suda

[Former Member]

Hi Suda,

Why do we need to change the posting date of the opening balance entry? Thanks 😃

Malu

[Former Member]

Hi

You have to make one more journal entry

opening balance 20$ dr

vendor 20$ cr

regards