Hello,
I am setting up ERPNext for my personal use.
I have entered Opening JV to enter bank balance amount.
I have also set is opening to Yes.
But when I am seeing chart of account, Temporary Opening a/c showing some big figure.
How to set it to zero?
Thanks,
Sambhaji
You have to set both assets and liabilities accounts opening balance to temporary account. So both debit and credit side is equal.
@jof2jc I am in service business, I don’t have any asset or stock.
What I can do to nullify Opening A/C balance?
If you only has few balance sheet accounts then you don’t need temporary account. Just use opening entry in journal entry to enter your existing balance sheet . This way both assets and liabilites will be equal.
You will need temporary account if you have many balance sheet accounts so you’ll need several journal entries for opening. Also if you want to enter outstanding invoices from your old system, so you may want to use temporary account to replace income/expense account. This way you are still able to track unpaid / outstanding invoices.
The point is once all your balance sheet accounts are posted into the system againts temporary account then its balance should be zero…
when I am creating journal voucher for opening entry, it says Total Debit must be equal to total credit.
For this, I have selected Temporary Account.
Is there any way to make opening entry without selecting Temporary Account?
@kolate_sambhaji yes, as long as the debits and credits match. Temperory account is just a convenience thing so that you can spread your opening entries over multiple transactions.
I am working on migrating the data to ERPNext and came across this problem. The solution wasn’t straight forward, however I could manage to bridge the asset/liability difference.
As part of migration, initially I set the opening balances for all the accounts except for sales/purchase. I wanted to capture the party specific balance as it would make future payments difficult to track without that information. Assuming Sales/Purchase invoice is the right way of doing that, I created dummy sales/purchase invoice to keep track of that information. That created two issues. The invoice created properly added the double entry for Debtors/Sales and Creditors/Cost of Goods, however it failed to make Sales/Cost Of Goods entry. So I was wondering how to balance out the money in temporary account. After experimenting a while, I simply created another Journal entry against temporary account, sales and Cost Of Goods. Sales/Cost Of Goods weren’t updated again, making the process to clear the temporary account easier. It looks like a defect, however didn’t affect the end result.
@jof2jc Hi. did this. I have entered the outstanding Sales invoices by DR - AR & CR to temporary account. If I post a payment it will DR Cash in bank & CR-AR. Now my Temp account floats. How do I close the account?
You have to post all balance sheet accounts for both assets and liabilities accounts against temporary account… Hence the balance will be zero
That’s true that the balance sheet equals zero but how do you handle when you have already entered all of the AP and AR invoices? Do you put the difference between AR and AP in as a temporary opening?
How do you get rid of the temporary opening going forward if so?
how do I create temporary account? is it not pumping up and I’m really finding it difficulty to input past records