Opening AR, AP Balances etc

Michael VB
2004-11-03
2013-05-02
  • Michael VB

    Michael VB - 2004-11-03

    We are getting ready to go live with Compiere and we need to setup the opening balances for things like Account Receivables and Accounts Payables (all the document controled accounts).  Since you can't make Journal entries to document controled accounts, what's the proper way to setup these balances?

    Any other recommendations in this area would be appreciated.

     
    • ADAXA

      ADAXA - 2004-11-04
       
    • Michael VB

      Michael VB - 2004-11-04

      Thank you for the post.  Very helpful.  One more question.  How would you input checks that have not cleared on a bank statement when going live?

       
    • ADAXA

      ADAXA - 2004-11-04

      In normal use, Compiere puts all payments to the bank-in-transit (BIT) account and then the Bank Statement process transfers the value from BIT to the GL account for the bank.  The addition of the BIT account and the gl bank account is the amount of money you have available (ignoring time to clear cheques etc).

      I assume you will bring over a lot of history and post by Gl Journal ... I would post all bank transactions from the old system to the new GL bank account and then do a further journal to debit or credit the BIT and debit or credit the bank account for the value of the uncleared items.  Whether you do this item by item or as one value is up to you..one value would be fine.. guess it depends on how many items there are ... if it is complex/many trx, perhaps one-by-one would be better.

      When the uncleared items appear on the bank statement you can manually create a bank statement line for them and then process and clear their value from BIT to the bank.

      should work ... :-)

       
    • Michael VB

      Michael VB - 2004-11-05

      Thanks again - I really appreciate the detail.  Some of the accounts you refer to such as BIT and the accounts for AR Trade in the other question are document controlled.  You mention making a journal to debit or credit the BIT.  Compiere doesn't let you make GL Journal entries to document controlled accounts.  How do you address this - just turn off document controlled, make the posting, and then turn it back on?  Are there any dangers to this?

       
    • ADAXA

      ADAXA - 2004-11-05

      "How do you address this - just turn off document controlled, make the posting, and then turn it back on? Are there any dangers to this?"  .... yes and minor.. I certainly would not let people I did not have confidence in enter any journal entries unless the doc_control flag is appropriately set .. usually only an issue when you start to run live.

      Doc_control flag is a double edged sword.  Doc_control lets you prevent people posting journals to accounts that Compiere thinks you should not post to but you may have to post to (say) the unrealised currency gain/loss accounts because there is no process to automatically restate foreign currency monetary items at month end..  choose you poison.

       
    • Alexandru Cârstoiu

      There must be lots of users/implementors who encountered this problem of initializing the debit and credit amounts of all accounts of an entity.
      Most likely, going live with Compiere doesn't match with the inception of a company. Moreover, it could be very well in the midst of a fiscal year.

      There are 2 options:
      A) hillarious enough, one might want to import ALL JOURNALS from the entity's birth.
      B) "No thanks", I'm not that ambitious, nor do I want to take an archeological degree in accounting.

      I'll discuss point B.
      Depending on the extent of history you want to preserve when turning to Compiere, you must choose a date when the time begins to flow. It can be the begining of the current period or the begining of the fiscal year. Then, you must load into Compiere the _status_ (not the history!) of the accounting system, at that point in time.
      The solution is to post some fake manual GL journals in a day before this initial chosen date. One variant is to create 3 journals as follows:

      1. Clear all "document controlled" flags and enter:
      DB            CR
      X: total    account1: credit
                      account2: credit
                    ........

      2. Copy the 1 and correct it to look like:
      DB                                 CR
      account1: debit            X: total
      account2: debit
      ........

      3. Cover your traces:
      DB                                                               CR
      X: minus total                                 X: minus total

      This can be of automated, of course. X can be an account of your choice, never used before (invent one).

       

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