How to record opening balances during the creation of a new company database

article ID: 1005569 

 

The recording of opening balances usually starts at the beginning of a new accounting year, but it might be necessary to enter these balances manually if you commence using Mamut in the middle of an accounting year. The entries can be made using two different methods.


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NOTE: This procedure applies only to the creation of a new company database, and not at year-end. At year-end, opening balances for the new accounting year are set up automatically.

 

Usually, the journal-type Opening Balances (OB) in Journal Entry is used to input opening balances within Mamut.

Recording opening balances at the beginning of the Accounting Year.


1. Choose Journal type Opening Balances in Journal Entry.

2. Choose the desired period, accounting year and date. If you, for example, have created a new company database and wish to enter opening balances as per 1-4-2007 you choose period 1, accounting year 2007 and date 01-04-2007.

3. Begin by entering the balances on the debit side. This debits the accounts 1000 to 1999.

4. After registering the debit balances, use accounts 2000 to 3999 to enter the credit balances.

5. Transfer the balances to the General Ledger by clicking on the transfer button.

 

Recording opening balances during the Accounting Year.

 

If you first start using Mamut during the accounting year it is necessary to transfer any balances into Mamut. For example, if you wish to begin using Mamut from 01-07-2007, you must enter figures from 30-06-2007.


1. Choose Journal type Opening Balances in Journal Entry.

2. Enter the balances from the period prior to the one in which you are starting to use Mamut (using the procedure above).

3. Once the balances have been entered, transfer them to the General Ledger.

 

Additionally:

It is recommended that you enter all opening balances as one journal and do not generate multiple OB-numbers. For example, enter all the incoming balances as OB1 and not split over OB1, OB2, and OB3 etc. However, if you choose to enter the balances over many journals you should ensure that the individual journals balance (debit=credit) at each stage. It will not be possible to balance the resulting General Ledger, if each single journal was not balanced before.