Level 3

Reports and Accounting

Hi shop,

When entering an opening balance, an income and accounts receivable (A/R) account are impacted for debtors and expense and accounts payable (A/P) account for creditors. The accounts are selected as the default account when you created your account. They can be edited once the original transaction is created. 

Here's how you can edit the income account assigned to debtors:

  1. Go to Sales.
  2. Click Customers at the top.
  3. Select the debtor's name.
  4. Select Transaction List.
  5. Click on the opening balance invoice created (this will be on the top transaction of the list).
  6. Once you have it opened, change the income account in the detailed line item of the invoice.
  7. Select Save.

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

To edit the expense account assigned to creditors:

  1. Go to Expenses.
  2. Click Suppliers at the top.
  3. Select the creditor's name.
  4. Select Transaction List.
  5. Click on the opening balance bill created (this will be on the top transaction of the list).
  6. Once you have it opened, change the expense account in the detailed line item of the bill.
  7. Select Save.

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

This will change the default accounts created, shop. Let me know if you have any other questions.