Opening Entry

Opening Entry

Purpose of Opening Entry and when to do it

Once the database has been handed over to your company, users may begin to perform Opening Entry for your company accounts.

The purpose of Opening Entry is to:
  1. Bring forward operating balances into system accounts
  2. Bring outstanding documents (Invoice & Supplier Invoice etc.) into the system
  3. Match up system Inventory with your company's inventory
The date which you should complete Opening Entry by is the date which you need the above to be in place.

Users have discretion as to which Opening to complete first, depending on which report(s) are required sooner.
  1. Opening GL for Profit/Loss reports
  2. Opening Stock for Inventory reports (and document entry with stock output)
  3. Opening Invoice & Opening Supplier Invoice for AR/AP reports and creating Payment/Receipt Vouchers
  4. Financial Reports like Balance Sheet and Trial Balance require all Opening Entry to be completed before being ready for use
 
Note that users may decide to begin document entry before Opening Entry is completed.
Existing Stock Qty is required to create any documents which cause stock output of Inventory Items, such as:
  1. Delivery Order, Invoice, Stock Adjustment; Debit Note and Supplier Credit Note with "Adjust Inventory" toggled.

You must decide on a date for the Opening Entry.
The decided date will be the post date of all Opening Entry documents, not necessarily the date which users perform Opening Entry.
Ensure that the selected period has been audited and closed.

Once the Opening Date has been decided, generate a Trial Balance report of your previous accounting system dated 1 day earlier than the Opening Date.
If you are using SAM's Inventory system as well, also generate a Stock report dated 1 day earlier than Opening Date.
Opening Entry will be performed with reference to this Trial Balance report (and Stock report).


Opening Entry can be performed using modules at Adjustment > Openings



Before making any Opening Entry, ensure the correct Opening Adjustment account has been set at Company Registration.





Opening General Ledger


Reference the figures of the Trial Balance to enter the Debit/Credit balance of every account, except for Trade Debtors, Trade Creditors and Stock accounts.

If users are performing Opening Entry after having passed the decided Opening Date, any existing documents/entries dated past the Opening Date has to be manually entered.


Opening Invoice & Supplier Invoice


These 2 modules are for entry of Outstanding Documents, documents which are currently making up the balances in Trade Debtors and Trade Creditors accounts respectively.

Accounts meant for Opening GL module only require a closing balance to proceed with the Opening.
Trade Debtors and Trade Creditors accounts are unique as they are involved in AR/AP reports, which require information such as Business Partner and Document No. along with the transaction amount.

There are multiple possible ways to enter Opening Invoice & Opening Supplier Invoice documents (Opening IV/SI), chosen at your company/accountant's discretion.
The general rule is: If you require details in your outstanding documents, those details will have to be included in your Opening Entry.

The most straightforward method is creating an individual Opening IV/SI for each outstanding document.
If your company has a high volume of outstanding documents, you could consider creating lump sum Opening IV/SI.

At the highest level, outstanding documents of the same Business Partner are lumped into one Opening IV/SI.
Going lower, outstanding documents of the same Business Partner and due date could be lumped into one Opening IV/SI.

Users utilising Job Costing reports also must consider grouping the outstanding documents according to Job Code as well.


Take note: Opening Invoice and Opening Supplier Invoice documents do not affect Inventory system regardless of the items being featured.

With Opening Invoice and Opening Supplier Invoice completed, AR/AP reports will be ready for use.


Opening Stock


This module is for entry of item details which currently make up the balance(s) in your Inventory/Stock account(s).

At the simplest level, each Item that has Qty and Cost (as at Opening Date) will require an Opening Stock document.
(Optional) Each Item may require multiple Opening Stock documents if you need to further group the same Item by Location, Warehouse and Lot.
If your company's stock inventory is not sorted by Location, Warehouse or Lot; just enter 1 row for each Inventory Item.
Users utilising Job Costing reports also must consider attributing the Stock Cost according to Job Code as well.

The images below show a sample Opening Stock created and the resulting report.





With Opening Stock completed, stock reports will be ready for use.


Opening Adjustment Check

The Opening Adj. Check module is for checking that the Opening Entry has been completed correctly.

Ensure that the following amounts match up:
  1. Opening Invoice total with Trade Debtors account(s)
  2. Opening Supplier Invoice total with Trade Creditors account(s)
  3. Opening Stock with Stock/Inventory account(s)

To check that you have correctly entered your opening, the Total amount added up from each opening must equate to "0".
If the Total is not zero, that means the entries are not balanced, the system will automatically post it to your Opening Adjustment account.

    • Related Articles

    • Opening/Closing Modules

      1.1.2.2  Opening Modules   Location Action Remark Menu > Sales Activity      Click SALES Activity      Click QUOTATION Module      Click INVOICE Module These will open the Quotation and D.O. Module for you to work on Menu > Purchases Activity ...

    • Check if Opening Entries are Correct

      2.1.2 Check if Opening entries are correct Location Action Remark Setup Adjustment> Opening Adjustment Check module  Click ADJUSTMENT activity  Click OPENING  Click OPENING ADJ CHECK module  Click REFRESH To check that you have correctly entered ...

    • Periodic Inventory method

      The system uses perpetual inventory method as the default system inventory method. Inventory is calculated when the document is saved. For users that keep track of their stock cost outside of the system can use the periodic inventory method. this ...

    • Opening GL, Sales Invoices, Supplier Invoices & Stock

      2.1.1 Opening GL, Sales Invoices, Supplier Invoices & Stock As you have not started your business yesterday, you are already operating with balances in your accounts. These need to be brought forward to     system. ...

    • Changing my Item's default posting

      When you need an item to post to a specific account you can create up an item group to specify the posting. In the following example, i want to post to rental account whenever i choose the rental account. Under Setup -> Item details -> Item Group ...