Opening Reserves and Surplus balance

ERPNext
1

Hey,

I started to implement ERPnext in the middle of February 2024. In that moment I had a ‘Reserves and Surplus’ account with profits accumulated from previous periods. I’m trying t create a equity account to charge it with a initial balance but I can’t figure out how.

I’m trying to close the 2024 following this steps: Period Closing Voucher

But the reserve should be equal to profits from the period after mid of February + the reserve I had.

I’ve done some research but I’m not an accountant

2

Hi there,

It’s not really clear to me what your question is here. Can you be more specific about what you’re trying to do, what’s happening, and how that’s different from what you think should be happening?

3

I started using ERPNext in feb 18 2024, before that I had all the data in a spreadsheet unformally, no accounts just a track of incomes, expenses and what was in the banks.

I set up all the profi/loss accounts (income and expenses), assets, liabilities and shareholders accounts but I didn’t bring any chart of accounts since we didn’t have one. So what we did was to bring Balance in stock, banks and cash and start doing all the sales, purchases and everything in ERPnext to feed the brand new accounts.

I created 3 shareholders accounts:

  1. Stock balance that represent the inventory we had by Feb 18th $34,329.69
  2. USD Balance that I used to feed bank and cash accounts $8,185.69
  3. NIO Balance that i used to feed bank and cash accounts in my local currency $3,223.04

Now I realized we didn’t create a ‘Reserve and surplus account/retained Earnings’ account. Since we have been operating since 2020 and we only widthdraw profits once per year we have retained earnings.

This is the real scenario:

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image1720×417 45.7 KB

So what I want to do is:

  1. Create that ‘Reserve and surplus accoun/retained earningst’ with an opening balance = reserves until Feb 17th that way I can complete the required accounts and delete or modify the other shareholder accounts.
  2. Create a Period closing Voucher to move profits from 2024 to that reserve account.
4

I’m not an accountant either, but what you’re describing sounds fine. The three things you’re describing – 1) equity accounts, 2) opening balances, and 3) period closing vouchers – are all standard features of ERPNext. What’s not working as you expect it to?