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Intuit
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How to set up customer or supplier opening balance

The method you use to enter opening balances for customers and suppliers/suppliers will depend on whether the balances existed before your QuickBooks Online start date, or if they were acquired after the start date.

Note If you want to keep track of individual sales or bills that make up your customer and supplier/supplier opening balances, enter each unpaid invoice and unpaid bill instead of entering a total balance for each customer and supplier/supplier.

Setting up a customer opening balance

  1. Select Sales, then select Customers.
  2. Select New Customer upper right.
  3. Enter customer information.
  4. Go to the Payments and Billing which is between the Tax info and Attachments tabs, then enter Opening Balance and as of date (most likely the date you started your QuickBooks Online account).
  5. Select Save.

What accounts are impacted when entering a customer Opening Balance?

When entering an opening balance during a customer set up, income and Accounts Receivable (A/R) / Trade and other Receivable accounts are impacted. The income account is the default account when the QuickBooks Online subscription is created. It appears in the Credit column on the transaction journal and can be edited once the original transaction is created.

To edit the income account that the opening balance is assigned to:

  1. Select Sales, then select Customers.
  2. Select the customer.
  3. Select the Opening Balance Invoice.
  4. In the Product/Service column, select the drop-down and choose another item.
  5. Select Save.

Accounts receivable appears in the Debit column of a transaction journal. This represents that the customer still owes you money and will stay in Accounts receivable until the invoice is paid.

How to set up a supplier/supplier opening balance

Here's how to set up a supplier/supplier opening balance in QuickBooks Online:

  1. Select Expenses, then Suppliers.
  2. Select New Supplier/Supplier on the upper right.
  3. Enter required information for supplier or supplier.
  4. Enter Opening Balance and as of date (most likely the date you started your Quickbooks Online account).
  5. Select Save.

What accounts are impacted when entering a Supplier/Supplier Opening Balance?

When entering an Opening balance during a supplier/supplier set up, income and Accounts Payable (A/P) / Trade and other Payable accounts are impacted. The Expense account is selected as the default account when the Quickbooks Online subscription is created. It appears in the Debit column on the transaction journal and can be edited once the original transaction is created.

To edit the expense account that the opening balance is assigned to:

  1. Select Expenses, then Suppliers.
  2. Select the supplier, then select the Opening Balance Bill.
  3. Change the expense account in the detailed line item of the bill.
  4. Select Save.

Accounts Payable appears in the Credit column of a transaction journal. This represents that the business still has a credit note or balance due to the supplier/supplier. Accounts Payable will be impacted by this opening balance until the bill is paid.

Now you're able to set up a customer or supplier opening balance.

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