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Recording Opening Balances

Recording opening balances is the process of entering your starting financial data when you first begin using Kezi.

Recording General Account Balances

  1. Go to Accounting > Journal Entries > Create.
  2. Select an Opening Balance Journal (or use Miscellaneous).
  3. Set the Date to the day before your go-live date.
  4. Add lines for each account in your Trial Balance:
    • Assets (Cash, Bank, Fixed Assets): Enter in Debit.
    • Liabilities (Loans, Taxes Owed): Enter in Credit.
    • Equity (Retained Earnings, Capital): Enter in Credit.
  5. Balance the entry against the Opening Balance Equity account if you are entering balances incrementally.

Recording Partner Balances (AR/AP)

To maintain a sub-ledger for customers and vendors, do not just enter a lump sum in the GL.

For Outstanding Customer Invoices:

  1. Go to Sales > Invoices > Create.
  2. Select the Partner.
  3. Enter the details of the original invoice.
  4. Set the Account to the "Opening Balance Counterpart" account instead of a Revenue account to avoid double-counting income in the current year.
  5. Validate the invoice.

For Outstanding Vendor Bills:

  1. Go to Purchases > Vendor Bills > Create.
  2. Select the Vendor.
  3. Enter the bill details.
  4. Set the Expense Account to the "Opening Balance Counterpart" account.
  5. Validate the bill.

Recording Inventory Opening Stock

  1. Go to Inventory > Stock Adjustments > Create.
  2. Select the Location (Warehouse).
  3. Add products and their Starting Quantities.
  4. Set the Valuation Price to the cost at which you purchased them.
  5. Set the Counterpart Account to "Opening Balance Equity".
  6. Validate the adjustment to update your stock levels and accounting.

Troubleshooting

Entry is not balancing

Ensure that Total Debits = Total Credits. If you are missing one side of the equation, use the Opening Balance Equity account as a temporary placeholder.

Duplicate Revenue/Expense

When recording old invoices or bills, ensure the line items point to the Opening Balance account, not your standard Sales or Expense accounts, so your current year's Profit & Loss stays accurate.