15 Replies Latest reply: Nov 21, 2013 1:18 AM by Alven Butanas RSS

SAP Business One 8.82 Opening Balances

Adebola Adenusi
Currently Being Moderated

Dear all,

 

I am working on setting up our first SAP B1 client and I have challenges setting up the opening balances. I have reviewed many materials on the partner portal and also searched the forum for answers with no luck.

 

Based on the resources reviewed and studies carried out, I have identified that we need to set up the following opening balances

 

1. GL Balances: - We have gotten the last trial balance from the customer and we would be picking the GL balances for balance sheet items from the trial balance. We also have set up the opening balances account and specified this in GL Determination. If the figures are okay, the opening balances account should be 0 once we specify all balances.

 

2. Business Partner Balances: - I noticed that the opening account specified in the GL account determination is automatically selected. But posting the BP balances leaves a balance in the opening balances account. How do I resolve the figures in this account since the account should be 0.

 

3. Inventory Balances: - The Inventory Opening balance screen requires an inventory open account which does not exist under GL determination and the opening balances account created is not automatically selected. I selected the account and also experienced the same scenario with the BP opening balances.

 

My questions are;

 

1. Which accounts should be specified as the opening balances account for BP and Inventory?

2. How do I ensure that the balances are 0 after posting BP and Inventory balances?

3. How do I reconcile the figures created in the opening balances account after posting BP or inventory balances?

 

There is no how to guide on opening balances and I would appreciate any guide or answers that can be recommended.

 

Regards

 

Debola

  • Re: SAP Business One 8.82 Opening Balances
    Kennedy T
    Currently Being Moderated

    Hi Adebola Adenusi ,

     

    Create Under Liability Drawer Profit &Loss control account as  Opening Balance Account.

    Actually this is you Profit & Loss account means after entering all the Opening balance it will bring you the Profit and Loss as per your  Financial Statement... If you not enter you profit& Loss .. It is Offset account which should be zero if your Financial report tallied..

     

     

    Regards

    Kennedy

  • Re: SAP Business One 8.82 Opening Balances
    Rahul Moundekar
    Currently Being Moderated

    Hi Debola.........

     

    You are absolutely right.

    Its Opening Balance Offset Account should be zero....

    And it would be zero only when you have accurate opening balances for GL/BP and Stock.

    For Example:

    1. for OB of BP:

    BP: 100 USD Dr.

    OB GL: 100 USD Cr.

     

    2. For GL:

    GL: 200 USD Cr.

    OB GL: 200 USD Dr.

     

    3. For Stock

    Stock GL: 100 USD Dr

    OB GL: 100 Cr.

     

    Now if you sum up all the OB GLs  you can find its summation as zero..

    Because it includes all the balance of balanced transactions.......

     

    Regards,

    Rahul

  • Re: SAP Business One 8.82 Opening Balances
    Jimmy Michael
    Currently Being Moderated

    Hi Adebola,

     

     

    What is your database localization ?

    If it is UK, based on best practice, you must create the opening balance accounts under capital and reserves. There is no equity drawer in such database although everyone can say that equity drawer is as same as capital and reserve but I think that's wrong.

     

    These following links will explain more detail about the opening balance account:

     

    http://scn.sap.com/thread/949614

    http://scn.sap.com/thread/3174912

    http://scn.sap.com/thread/2045142

     

     

    Rgds,

    Jimm

    • Re: SAP Business One 8.82 Opening Balances
      Adebola Adenusi
      Currently Being Moderated

      Hi Jimmy,

       

      My database localization is UK. You are right. I created the opening balance offset account under Capital and Reserves.

       

      I have looked at the links provided and it is all beginning to make sense. I do not have an accounting background but after years of reviewing financials, I do know that a balance sheet has 3 account entries.

       

      1. Inventory / Stock (Assets). This account reflects net of stock balances

      2. Trade Debtors (Assets). This account reflects the net of customer balances

      3. Trade Creditors (Liabilities). This account reflects the net of vendor balances

       

      If I have one opening balances offset account (I don't understand why I need to create 3 offset accounts like it was stated in one of the treads) and I post balance sheet GL balances excluding the balances for the 3 accounts listed above. The net amount in the account will not be zero. I can then go to BP balances to post customer and vendor balances (the net should be a combination of the trade debtors and trade creditors balances) and the inventory opening balances (the net should be the inventory figure on the balance sheet). Posting the opening balances for BP and Inventory should turn the balance in the opening balances account to 0.

       

      If this is true, the question now is will SAP B1 automatically recognize the customer balances and vendor balances as trade debtors and trade creditors respectively?

       

      I am grateful for all the assistance offered so far.

       

      Regards

       

      Debola

      • Re: SAP Business One 8.82 Opening Balances
        Jimmy Michael
        Currently Being Moderated

        Hi Adebola,

         

         

        You can create one opening balance account as an offset account for the inventory, trade debtor and trade creditor.

         

        SAP B1 will use trade debtor account as customer balance if you set it as control account in the chart of account and will use trade creditor as vendor balance if you set it as control account in the chart of account. The other name for both are subledger accounts.

         

        Rgds,

        Jimm

      • Re: SAP Business One 8.82 Opening Balances
        Kennedy T
        Currently Being Moderated

        HI Adebola ,

         

        Offset account for this going to be opening balance offset account under Capital and Reserves

         

        These are the control accounts.

        1. Inventory / Stock (Assets). This account reflects net of stock balances

        2. Trade Debtors (Assets). This account reflects the net of customer balances

        3. Trade Creditors (Liabilities). This account reflects the net of vendor balances

         

         

        Control account: An account designed for the purpose of controlling the transactions that are posted to it. Only transactions from subsidiary modules such as A/P, A/R, and inventory can be posted to a control account; manual journal entries cannot be posted to a control account. This prevents malicious or suspect entries from being made to material accounts, such as receivables, cash, or inventory, and provides a better audit trail.

        is to maintain multiple Account in a Single Account called as Control Account.

        To maintain the Entire Transaction as well as the peer level transaction .

         

        SAP allow to defines account as a control account. The control accounts are linked to business partners and reflect their activities in the financial reports. Only accounts defined in the Assets and Liabilities drawers can be defined as control accounts. Control accounts appear in the chart of accounts in green.

         

         

         

        Regards

        Kennedy

        • Re: SAP Business One 8.82 Opening Balances
          Alven Butanas
          Currently Being Moderated

          Hi All,

           

           

          In connection to Adebola's problem, My GL Opening balance GL account is already zero but when I generate Profit and Loss report, the GL Opening balance account would reflect certain amount. I was trying to figure out the cause since the original document date of the invoices was entered in posting date in SAP. Note that the cut-off period for uploading the beginning balances is May 31 and the invoices dated prior to may 31 was posted in its posting date not the document date.

           

          Thank you.

           

          Regards,

          Alven

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