Now that you have completed most of the setup, its time to start moving in!
There are two important sets of data you need to enter before you start your operations.
To setup your accounts and stock correctly you will need accurate data to work with. Make sure you have the data setup for this.
We usually recommend that you start using accounting in a new financial year, but you could start midway too. To setup your accounts, you will need the following for the “day” you start using accounting in ERPNext:
Opening capital accounts - like your shareholder’s (or owner’) capital, loans, bank balances on that day. List of outstanding sales and purchase invoices (Payables and Receivables).
Based on Voucher Type
You can select accounts based on the voucher type. In such a scenario, your balance sheet should be balanced.
Also, note that if there are more than 300 ledgers, the system will crash. Thus to avoid such a situation, you can open accounts by using temporary accounts.
A nice way to simplify opening is to use a temporary account just for opening. These accounts will become zero once all your old invoices and opening balances of bank, debt stock etc are entered. In the standard chart of accounts, a Temperory Opening account is created under assets
In ERPNext Opening Accounts are setup by submitting a special Journal Entries (Journal Entry).
Note: Make sure to set “Is Opening” as “Yes” in the More Info section.
Setup > Opening Accounts and Stock > Opening Accounting Entries.
Complete Journal Entries on the Debit and Credit side.
To update opening balance is to make Journal Entry for an individual/group of accounts.
For example, if you want to update balance in three bank accounts, then make Journal Entrys in this manner.
Temporary Asset and Liability account is used for balancing purpose. When you update opening balance in Liability Account, you can use Temporary Asset Account for balancing.
This way, you can update opening balance in Asset and Liability accounts.
You can make two Opening Journal Entrys:
After completing the accounting entries, the trial balance report will look like the one given below:
After your Opening Journal Entrys are made, you will need to enter each Sales Invoice and Purchase Invoice that is yet to be paid.
Since you have already booked the income or expense on these invoices in the previous period, select the temp opening account Temporary Opening in the “Income” and “Expense” accounts.
Note: Make sure to set each invoice as “Is Opening”!
If you don’t care what items are in that invoice, just make a dummy item entry in the Invoice. Item code in the Invoice is not necessary, so it should not be such a problem.
Once all your invoices are entered, your Temperory Opening account will have a balance of zero!
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