DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Setting up opening balances for inventory items


#1

Im trying the cloud version to see if it can be used in my office and I can’t seem to create an opening balance for my inventory in it like the desktop version. Is there a different way of doing that or is that simply not supported in the cloud version?


Inventory is now available
#2

Cloud edition is always the latest version. The issue was that people were often using Opening balances fields incorrectly so to set opening balances for any account, you need to go to Settings tab and enable Conversion Balances module.

This module will allow you set opening balances for all general ledger accounts and all subsidiary accounts in one place.

In this case, to set opening balances for your inventory items, go to Settings, then Conversion Balances and click Edit button on Inventory on hand account. This will list your inventory items in which you can set opening balances individually.


#3

Can I add opening quantities of inventory items?


#4

Of course, but follow this guide as this thread is a few months old.

Opening inventory should go to “Qty” field and cost price to “Unit price” field. The total will represent opening inventory on hand balance for that particular inventory item.

So you need to do this for each inventory item that has opening qty / balance.


#5

when i follow your instruction on opening balance of inventory, the stock amount also show in suspense account in account summary under equity. please i need someone to help me out.


#6

Of course. Opening balances must be set for all accounts so debits and credits equal. If they don’t, the difference is posted to Suspense account as to enforce double-entry accounting principle where each debit must have corresponding credit.


#7

So you mean by showing total amount of my stock in suspense account it normal?


#8

No, it’s not. Here is what Wikipedia says about Suspense account.

A suspense account is an account in the general ledger in which amounts are temporarily recorded. The suspense account is used because the proper account could not be determined at the time that the transaction was recorded. When the proper account is determined, the amount will be moved from the suspense account to the proper account.

Suspense accounts should be cleared at some point, because they are for temporary use

Anyway, the fact you are setting up opening balances means you are migrating from another accounting system. Do you have an accountant who could tell you what are your opening balances as per all your accounts and not just for inventory items?

You can leave the balancing amount in Suspense account for the time being but at some point, someone (your accountant?) should fix it by entering opening balances for remaining accounts so nothing is left in Suspense.


#9

Thanks. I hope you are still working on user activity log?