Opening balance invoices allows you to record accounts receivable from previous accounting periods as part of your initial accounting setup.
Although you can add all your accounts receivable opening balances in a journal entry, by creating opening balance invoices you can track and settle these accounts receivable without having to manually add journal entries each time you receive a payment for these opening balances.
Creating opening balance invoices
To create an opening balance invoice,
Create an opening balance invoice
- In the main menu, go to Sales, then click on Invoices.
- In the Invoices list, click on the (+) Button and then on Opening Balance.
- Choose the customer, currency, issued and expiration dates, the document’s status, and the employee or salesperson.
- Click on the Content Tab,
- Choose the Item (Product or Service) and set the quantity. The description, price, and tax will be filled in automatically.
- To add new items, click on the (+ Item) Button below the list and Repeat Step 2.
- To remove an item from the list, click on the trash can icon on the right.
Note: Keep in mind that opening balance invoices create an account receivable, however, they do not affect inventory count and are classified as opening balance journal entries in the general journal.
Once you’ve completed creating the invoice, click on Save.
You can repeat this step for all pending opening balance invoices.