Entering Opening Balances: Clients, Suppliers, Inventory, Treasuries and Assets

When you start working on the system, you need to enter your opening balances: amounts owed by clients, amounts owed to suppliers, treasury and bank balances, inventory quantities and their cost, fixed assets, and other accounts such as capital and loans. This guide explains where to enter each type, the journal entry created for it, the correct order, and how to check that the balances are correct.

How do opening balances work in the system?

Each opening balance is recorded with a journal entry whose other side is the Opening Balance account in the Chart of Accounts. After you enter all balances, this account’s balance equals net equity on the start date (assets − liabilities), and it is then closed into capital.

Type	Where to enter it	Journal entry
Clients	The client form or import	Debit the client / Credit Opening Balance
Suppliers	The supplier form or import	Debit Opening Balance / Credit the supplier
Inventory	Inbound Requisition or a manual stock transaction	Debit the warehouse / Credit Opening Balance
Treasuries and banks	Journal entry	Debit the treasury / Credit Opening Balance
Fixed assets	Adding an asset	Debit the asset / Credit Opening Balance
Other accounts	Journal entry	Depends on the account type

Recommended order and date

1. Choose one date for all opening balances: the day before the first transaction you will record in the system (for example 31/12/2025 if you start working on 01/01/2026).
2. Prepare the chart of accounts (add the accounts you need).
3. Enter client balances, then supplier balances.
4. Enter inventory balances.
5. Enter treasury, bank, asset and other account balances.
6. Review the trial balance and the Opening Balance account, and close it into capital.
7. Add a closed period up to the opening balance date so the balances aren’t changed by mistake.

Client balances

When adding a new client

1. Enable the Opening Balance in Clients Settings (once).
2. In Add Client, enter the Opening Balance (the amount the client owes) and the Starting Balance Date.
3. Save.

Account	Debit	Credit
The client	5,000.00
Opening Balance		5,000.00
Total	5,000.00	5,000.00

For an existing client, or to edit

From the client’s page or statement, click Add Opening Balance or Edit Opening Balance, and enter the date, amount and currency. Saving an empty amount deletes the opening balance.

For many clients

Import the clients from a file, with the opening balance and opening balance date columns.

Supplier balances

1. In Add Supplier, enter the opening balance (the amount you owe the supplier) and the Opening Balance Date.
2. Save. To change it later, use Edit Opening Balance on the supplier’s page.

Account	Debit	Credit
Opening Balance	8,000.00
The supplier		8,000.00
Total	8,000.00	8,000.00

Inventory balances (products)

The recommended method is a manual stock transaction, because it lets you set the date, cost and account:

1. Open the product and click Add Transaction (or Inbound Requisition if requisitions are enabled).
2. Choose an addition, and enter the Quantity and Unit Price (unit cost), set the Movement Date to the opening balance date, and choose the warehouse.
3. In Journal Account, choose Opening Balance.
4. Save.

Account	Debit	Credit
The warehouse (inventory)	20,000.00
Opening Balance		20,000.00
Total	20,000.00	20,000.00

Treasury and bank balances

The treasury form has no opening balance field, so enter its balance with a journal entry:

1. Open Add Journal and set the date to the opening balance date.
2. First line: the treasury or bank account (from Treasuries & Bank Accounts): Debit the balance.
3. Second line: Opening Balance: Credit.
4. Save.

Account	Debit	Credit
The treasury / bank	15,000.00
Opening Balance		15,000.00
Total	15,000.00	15,000.00

You can enter all treasuries and banks in one journal entry with several lines.

Fixed assets

1. Open Add Asset, and enter the asset details, purchase value, Purchase Date and In Service Date.
2. In Cash Account, choose Opening Balance (instead of a treasury), so the amount isn’t deducted from a treasury.
3. Save.

Account	Debit	Credit
The asset	50,000.00
Opening Balance		50,000.00
Total	50,000.00	50,000.00

To enter the accumulated depreciation up to the start date, add a journal entry: Debit Opening Balance / Credit the asset’s Accumulated Depreciation account.

Other accounts (capital, loans, other balances)

Enter the remaining balances with one or more journal entries, dated on the opening balance date, with Opening Balance as the other side:

Account	Entry
Assets (prepaid expenses, advances, custody, notes receivable…)	Debit the account / Credit Opening Balance
Liabilities (loans, taxes payable, notes payable…)	Debit Opening Balance / Credit the account
Capital and equity	Debit Opening Balance / Credit Capital (or close the difference in the next step)

Reviewing balances and closing the Opening Balance account

1. Open the trial balance on the opening balance date and compare each balance with your previous books.
2. Review the balance of the Opening Balance account (usually a credit): it should equal net equity (assets − liabilities).
3. Close it with an entry: Debit Opening Balance / Credit Capital (or Retained Earnings), so its balance becomes zero.
4. Add a closed period up to the opening balance date.

Common mistakes

Mistake	Result	Correct approach
Entering a client’s balance in their form and also in a journal entry	The balance is duplicated.	Enter it in one place only.
Entering inventory from the product form without a purchase price	The quantity increases with no value in the accounts.	Enter the cost, or use a manual stock transaction.
Leaving inventory on the Other Payables account	An open balance remains in that account.	Move it to Opening Balance with a journal entry.
Choosing a treasury when adding an asset	The asset’s price is deducted from the treasury.	Choose Opening Balance in the Cash Account.
Different dates for the balances	Reviewing is harder.	Use one date before the first transaction.

FAQs

Where do I add an opening balance for a client?

When adding the client (after enabling the starting balance in the client settings), or later from Add Opening Balance on the client’s page.

Where does the Opening Balance account appear?

In the chart of accounts, usually under equity (depending on the chart of accounts used in your account).

Can I import opening balances?

You can import client and supplier balances and product quantities with their data. Other accounts are entered with a journal entry.

I entered wrong balances. How do I fix them?

Edit the opening balance from the client or supplier page, or edit the journal entry or stock transaction, after opening the closed period if there is one.