opening balance entry

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Deepa1
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opening balance entry

Hi there

 

I am new to MYOB Essentials and trying to set up the accounts.  I have entered the Opening Balance in the Accounts list which is a loan from a friend.  Do I also have to enter this as a receive money or transfer funds?

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MYOB Product Team Haydes
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Re: opening balance entry

Hi @Deepa1 

 

In short: if you have entered your opening balance for the loan account as well as the bank account then you do not have to enter the incoming money as this will effectively double up the balances on both accounts as transactions simply add onto the existing balances set by the opening balances.

 

Hope this clears things up.



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Hayden (Ex-Moderator)
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Deepa1
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Re: opening balance entry

Hi Hayden

 

Thank you for your prompt response.  I have entered it in Accounts list under 2-4200 long term liability as loan.  I have also entered it in 3-9999 as Historical balancing as negative figure.  Are you saying I need to enter is under Asset, Banking 1-1000 bank account too?

MYOB Product Team Haydes
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Re: opening balance entry

Hi @Deepa1 

 

The idea here is to enter the current amount into the Loan Account as of the Opening Balance Date as well as the current Bank Account balance as of the Opening Balance Date.

 

For example if the Opening Balance Date was 01/05, I'd enter the Opening Balance Date for the Bank Account as the same amount as the Closing Balance for that account on 30/04. The same with the Loan account, you would enter the Opening Balance for that date as the Closing Balance as the previous day. 

 

The reason for this is so that if you have any transactions on that date, it's adding on top of the existing balance to make it correct. Here's a good support note that goes into more detail here: Entering opening balances

 

The Historical Balancing Account will always begin to have a balance when you enter Opening Balances, it's there so that your Balance Sheet doesn't go out of balance so it's ok to ignore that value.

 

Hope this clarifies things, let me know if you have any other questions on this.



Cheers,

Hayden (Ex-Moderator)
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Deepa1
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Re: opening balance entry

Hi Hayden

 

Thank you.  The figures all match now.  I had failed to enter my opening balance for Bank Account.

Ultimate Partner The_Doc
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Re: opening balance entry

Hi @Deepa1 

 

Just an alternative old wiser user old trick I learnt years ago when doing forensics - opening balances can be altered at anytime and forever - i.e. some files get 10 - 15 years old and book keepers and users come and go - but one day you get a not so wise user deciding to alter the opening balances to fix a fault.

 

Sort of like having an unbalanced car because the back right tyre is half flat (or half inflated) - so to balance the car you let the left back tyre down 1/2 - car is balanced but you now have 2 flat tyres.

 

To stop this happening create a GJ for the date of the opening balances - when you roll file forward these are locked but remain forever balanced.

 

Just an old trick.Smiley LOLSmiley LOLSmiley LOL

 

The Doc

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