The following instructions will assist you in entering opening balances both manually using a journal entry, and by automatically importing a CSV file.
Step 1 - Preparation
- Go to Settings > Chart Of Accounts > Show advanced configuration options. Use the tick boxes to enable the options listed below and click Update
- Access To Nominal Codes
- Configure Nominal Codes
- Enable Journal
- Next, go to Bank > Transaction Types button > Scroll down to the bottom and set up a new transaction type named “Suspense Account” with a code of 9999 > Add
You have now enabled the journal, enabled access to nominal codes and created a suspense account.
Debtors and Creditors
Tally does not allow direct postings to the Debtors Control or Creditors Control accounts via the journal. This means that you are required to create the a dummy invoice and purchase receipt to the amount of the opening balance against a suspense account. We'll later journal these figures out leaving you with the correct entry against debtors and creditors control.
You can either enter all outstanding Sales and Purchases individually or just create one Sale and one Purchase to cover them all.
Debtors
Click Sales > New Invoice > Create a customer named 'Opening Balances' > Create an invoice and add a line item. You should then enter the following:
- Sales Type – select Suspense Account
- Net Rate – this should be the amount of your debtors figure
- VAT Rate – this should be N/A as the VAT will already be accounted for in your opening balance journal
When ready, click Add Item. You should now be left with the correct debtors figure against your suspense account.
Creditors
Click Purchases > New Receipt > Create a supplier named 'Opening Balances' > Create a receipt. You should then enter the following:
- Outgoing Type – select Suspense Account
- Net Rate – this should be the amount of your creditors figure
- VAT Rate – this should be N/A as the VAT will already be accounted for in your opening balance journal
You should now be left with the correct creditors figure against your suspense account.
Entering the Journal
The next step is to enter in the opening balance journal. This is your trial balance as of the date you're switching from your previous accountancy software to Tally.
Creating the Journal
Start by going to Journals > Add New Entry.
- Date – this needs to be the date of your trial balance
- Category – this should be standard journals
- Comment – enter 'opening balances'
When ready, click Add Entry.
Entering the balances
Using the next page to enter in your opening balance journal:
- Type – select the Nominal Code using this drop down
- Debit/Credit – enter in the amount as it appears on your trial balance from your previous accountancy software in the appropriate column
When you get to the Debtors & Creditors figures, select Suspense Account.
- Debtors – put the figure in the debit column
- Creditors – put the figure in the credit column
When you're ready, click Save Changes. You're all done!