Hi all, I am setting up an existing company and one of the customers has a credit balance (prepayment) sat on their account. How do I enter this as an opening balance please.
To add this opening balance to the client you would have to add the pre-payment as a transfer from the bank. You can date this transaction as the same as your opening balances but you may need to adjust the bank opening balance to allow for this transaction.
Unfortunately you can only add a positive figure (invoice) as an opening balance
Thank you. Am I right in thinking the prepayment would increase the bank balance therefore the opening balance needs to be £50 lower than it is? I’m suffering with brain fog this week!
Yes so if the prepayment is £50 you would need to enter a +£50 transaction to tag to be held on your client account which would increase your bank balance by £50 so you would need to reduce the opening balance by £50 to keep it correct
Thank you so much. This and opening nominal balances were winding me up so much yesterday i was ready to cry and quit to be an HGV driver
Helps if you ask in the right places.
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