How to create Opening Balance for new year in OpenERP?
At the end of a financial year, you will have to transfer the closing balance of current year as an opening balance to the new financial year.
You have to do following steps to achieve this.
First create new financial year (In our example, we are using 2012 as our running fiscal year).
Now create an account for opening balance.
You have to take care before selecting account type more specifically the Deferral Method. It determines whether and how account entries will be transferred to the new financial year. There are following types of deferral methods:
Deferral Method Action None Nothing will be transferred (typically P&L accounts) Balance Account balance will be transferred (typically Balance Sheet accounts) Detail All entries are transferred, also reconciled entries Unreconciled Only entries that are not reconciled on the first day of the new financial year will be transferred (typically receivable and payable)
Define journal for opening balance.
Make entries for opening balance in that journal.
It will automatically generate the opening entries based on information provided in following wizard.
In the wizard, enter the financial year for which you want to transfer the balances (Fiscal Year to close). Select the New Fiscal Year (the year in which you want to generate the opening entry). You have to select the journal and the period to post the opening entries. Enter description for the opening entry such as Opening Entry for year YYYY. After that click on the Create button to generate the opening entry according to the settings defined.
Just look at the draft opening entry that has been generated. Open record which has state ‘Unposted’. Click on Post button to confirm the entry.
Now we have to close previous fiscal year as we do normally.
Further more, we can check in Chart of Account for all entries which we have created to varify.