I started using Manager for an existing business from August 01, 2016.
When creating a supplier, I need to enter the balance due on August 01, 2016.
So, I created a purchase invoice for the balance due. Is it the right process?
Generally, a purchase invoice relates two accounts-
1) Accounts Payable (Cr.)
2) Inventory or other assets account (Dr.)
But, for the invoice I created above, which account should be debited.
Because I don’t know whether the goods/inventory/assets purchased before are still on hand/consumed/sold or not.
Looking for suggestion.