Updating opening balances

ERPNext Accounting
1

I am in the process of moving all outstanding invoices from QB to ERPNext. There are sales invoices which are partially paid. For example, total invoice value is 15,000 and 10,000 has been paid already.

How do I create this invoice when updating opening balances?

Is there a best practice?

Thanks!

2

Hello,

Two options:

  1. Create Sales Invoice for the partial amount. In the Sales Invoice, set Is Opening as Yes.

Or

  1. Create Journal Entry to update receivable from the Customer.

https://frappe.github.io/erpnext/user/manual/en/accounts/opening-accounts

3

Thanks!

4

I created the sales invoice for full amount and set Opening as Yes.

Then created a journal entry to update the balance receivable from the customer.

When I try to make a payment to the sales invoice, it shows me that I have to pay the whole amount.

Is there a way that I can still update the balance to be paid in to the invoice for opening invoices?

5

You should update opening balance only once i.e. via Sales Invoice or Journal Entry. If it is duplicate, please delete the extra entry.

Opening Balance for the receivable should be updated only for the outstanding invoices. If invoice is already payment, then you can skip it.

If Journal Entry created is a payment entry? If yes, you can reconcile Sales Invoice against Journal Entry via Payment Reconciliation Tool.

6

@umair Thanks for your help!

All my outstanding invoices are partially paid by the customer. I want to move these partially paid invoices in to ERPNext since they are not fully paid. What I did was created the sales invoice for original full amount.

For example there is a sales invoice for Rs. 10,000
Customer has already paid Rs. 2,000

The outstanding balance is Rs. 8,000

I create a sales invoice in ERPNext for 10,000 and set it as Opening.
How do I now, update the balance amount as Rs. 8,000?

7

You just need to ensure that Sales Invoice total is 8,000. You can achieve this by reducing selling rate for an item. For example, item which you sold for 10,000, enter it’s value as 8,000. Or you can also skip selecting Item as it is no a mandatory field. Just enter Amount as 8,000 and Select “Temporary Opening” as an income account.

Hope this helps.

8

Thanks @umair!

It is my lack of knowledge in general accounting. I will be creating invoices for the balance amount and the issue will be resolved.

Thanks again!

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