Enter Opening Balances

We recommend entering opening balances through the application using one or a combination of the Journal Entry options. Some customers have used a spreadsheet but the “homework” required to do so is the same, and one does not have the comfort factor nor the history that comes with doing it through the application. Mike Atherton detailed the procedure below:

  1. Build out your full G/L in xTuple ERP.
  2. Decide the last period in which the legacy system will be the “System of Record” (SOR).
  3. After the last period for which the legacy system is the SOR is closed, print a Trial Balance.
  4. Print a Trial Balance in xTuple ERP for the same period – you will already be using xTuple ERP at this point.
  5. Analyze the ending balances for the last period for the legacy system and compare them account by account to xTuple ERP
    • some will be a 1 to 1 and in this case one determines the delta and whether that is a Debit or Credit
    • in some cases there will be accounts that are unique to xTuple ERP relative to the legacy system and vice versa. In these cases decisions will need to be made regarding adjusting entries, by how much and to which accounts.
  6. Create a G/L account called Implementation Account making it type Equity and linked to a sub account type that will NEVER be used in an FRE statement.
  7. Enter all of the adjusting entries described above for the last period in which the legacy system was the SOR. The new implementation G/L account will be the opposite side of every entry.
  8. Generate financial statements for this last period in both systems and compare. Because there will not be a 100% match account to account these reports will not match line for line but the major sections (Current Assets, Gross Margin on Sales etc.) should match or more analysis and adjustments are necessary.

EnteringOpeningBalances (last edited 2008-09-24 16:23:15 by ptyler)