Using the "Opening Balances" Account

[former_member594505]

Hello:

In the default US chart of accounts for SAP Business One, I have noticed that there is an account called "Opening Balance".

Is this account the same thing as the Retained Earnings account in the sense that, each month, a balance brought forward from the previous month updates the balance of this account?

Or, is the account simply used as an offset for first implementing SAP Business One when transferring account balances from a legacy system?

Thanks!

John

[zal_parchem2 · Accepted solution]

Hello John - your second comment is correct.

The "Opening Balances" GL Account is to be used when moving over GL, Business Partner, and Item dollar amounts at the time implementation is being done. I would suggest you change the title to say something like "SAP B1 Impl Opening Balances Offset" to make it easier for the Audtiors to understand what is being done with this account. [They ALWAYS ask].

When all is said and done with all dollar amounts being posted from the Legacy system, the account should be zero dollars.

I also ensure that I run a Trial Balance, Balance Sheet, and Profit/Loss Statement after the "SAP B1 Impl Opening Balances Offset" gets to zero.

Regards, Zal

[former_member594505]

Thank you, Zal!

John