Opening Balances for Customers and Vendors (As Of Fields)
This topic offers additional details on how the Opening Balance feature works. This feature is only found in the customer and vendor forms. This topic was designed for bookkeepers and accountants.
This feature is not a required part of entering customers or vendors into Total Office Manager. The opening Balance feature was designed to allow you to quickly enter balances for customers and vendors without the use of a Journal Entry.
You MUST have ‘Accounting’ permissions to see or use Opening Balance feature.
When you enter a non-zero value and a date (which is preloaded) into the Opening Balance feature a Adjusting Journal Entry will be created for you <under the hood>.
You are allowed to enter a negative number . This would be necessary if YOU OWE the customer or the vendor OWES YOU.
These accounts cannot be changed. If you want to ‘Change’ Accounts or any other info you’ll have to open the JE form and manually adjust the info there.
Detailed Examples of the Adjusting Journal Entries
Vendor has negative balance <They owe us money>
Debit Account -> Accounts Payable
Vendor has positive balance <We owe them money>
Credit Account -> Accounts Payable
Debit Account -> Opening Balance Equity
Customer has negative balance <We owe them money>
Credit Account -> Accounts Receivable
Debit What Account -> Opening Balance Equity
Customer has positive balance <They owe us money>
Credit Account -> Opening Balance Equity
Debit Account -> Accounts Receivable