Opening Accounts Balance Process

Before you start using ERPNext for day-to-day accounting, you must bring your existing account balances into the system.

Steps:

Step 1: Ensure the Chart of Accounts Is Ready.

1. Navigate to: Accounts → Chart of Accounts
2. Verify all ledger accounts exist (or create missing ones)

Step 2: Use “Opening Invoice Creation Tool” (for customers & suppliers)

1. Go to: Accounts → Opening Invoice Creation Tool

2. Create:

   • Opening Sales Invoices (for outstanding receivables)
   • Opening Purchase Invoices (for outstanding payables)

Step 3: Create a Journal Entry (for all other opening balances)

1. Go to: Accounts → Journal Entry → New
2. Select Entry Type: Opening Entry
3. Enter all required ledger balances (Assets, Liabilities, Equity).
4. Ensure: Posting Date is correct (very important)

Purpose of Date

Date controls which period the opening balance belongs to.

Important:

Opening entry will always be posted against “Temporary Opening Account”, which must net to zero.

Reports to Verify Balances

1. Balance Sheet: Check if Asset, Liability, and Equity totals match opening values.
2. General Ledger: Check the Journal Entry for all ledgers and confirm the sequence using Posting Time.