Why is opening balance posted to Suspense?

1

In version 13, there was an option to enter the opening bank balance while creating new bank account.

This was very useful as the total bank balance was mentioned under Retained earnings in Equity.

Now in Version 14, that option has been removed and Conversion balances is now used to enter opening bank balance. However, this puts the total bank balance under Suspense in Equity.

Is there any possibility you could considering reverting back to the method used in Version 13? It was very easy to use and even a novice would be able to work with that.

The Suspense entry under equity feels a little inappropriate compared to Retained Earning

2

Manager is double-entry accounting system, every debit must have corresponding credit somewhere else. That’s why opening balance field has been taken out from bank account form because it was hiding what’s really happening behind the scenes.

So Conversion balances module has been introduced where you can set opening balances for all accounts in one single place. If debits don’t equal credits, then difference will be posted to Suspense account in order to enforce the accounting equation.

If the difference you are talking about really represents Retained earnings, then go to Conversion balances, click Edit on Retained earnings account and set the opening balance for it. Then debits will equal credits and nothing will be posted to Suspense account.

I just want to say that no changes are done because I’m bored. Everything is simply a response to how software is being misused in wild. If software is misused, it will not provide value it was designed for so these changes are necessary to gently nudge people the right direction.

3

Thank you for the clarification. It works like a charm. Do you have any plans for a separate app for iOS and Android? A masterpiece like Manager should have its presence everywhere.

4

I didn’t get it. Can you elaborate how can I balance the opening balance?

6

Are you familiar with accounting equation?

Have a look at Accounting equation - Wikipedia and Accounting Equation | Explanation | AccountingCoach

I can’t tell you how to balance your opening balances, it depends. Accountants will generally allocate this amount to some equity account such as Drawings or Funds contributed. Perhaps you should leave the amount in Suspense and let your accountant decide where to allocate it based on your circumstances.