Creating initial balances

This activity allows you to enter the initial balance of all the accounts for the various finance books. Tell me more.

Select the “Create Initial Balance” link under the “Finance Book Processing” business component.

The “Create Initial Balance” page appears.

Enter the following fields to select the finance book in which you want to enter the initial balances:

Book Type

Use the drop-down list box to select the type of finance book for which the initial balance entries are to be posted. You can select from “Posting Finance Book” or “Consolidation Finance Book”.

Note: “Consolidation Finance Book” will be available for selection only if a “Consolidation Finance Book” is available in the login organization unit that is a consolidation finance book has been created for the login organization unit.

Finance Book

Use the drop-down list box to select the code identifying the “Posting” finance book in which the initial balance entries are to be posted. All the finance books that have been deployed in the login organizational unit in which the “Finance Book Processing” business component is available and for which initial balance entries have not been created will be available for selection in the ascending order.

Note: If the company has both parallel and base currencies, initial balance entries must be created in both the currencies. Initial balance entry will be termed completed only if entry has been completed for both the currencies. If the initial balance entry has been completed in either one of the currencies the other will appear until the entry is complete in that currency also.

Currency

Use the drop-down list box to select the code identifying the currency of the finance book in which you want to enter the initial balances. You can select from “All”, “Base Currency” or “Parallel Base currency” if initial balance entries have not been completed in both the base currency and the parallel base currency. The system displays “All” by default at the launch of the page. If the company initially transacts only in the base currency initial balance entries must be entered in the base currency, subsequently when the parallel base currency is introduced then the initial balance can be entered in the parallel base currency.

Account Group

Use the drop-down list box to select the account group to which the account codes belong and for which you want to enter the initial balances. You can select from “Asset”, “Liability”, “Capital”, “Revenue”, “Expenditure” or “All”.

Note: “Parallel Base Currency” will be available if the initial balance entries have been completed for the base currency of the finance book.

If “Require parallel base currency” has been set to “Yes” in the “Installation Parameter” then “Base Currency”, “Parallel Base Currency” and “All” will be available for selection in this field.

The system displays the following:

Financial Year

The code identifying the financial year for which the initial balance is to be entered.

Note: If the company has introduced the parallel base currency at a later stage, the system displays the year in which the parallel base currency has been introduced.

Financial Period

The code identifying the financial period for which the initial balance is to be entered.

Note: If the company has introduced the parallel base currency at a later stage, the system displays the first financial period of the financial year for which the parallel base currency has been introduced.

Click the “Get Account Details” pushbutton to retrieve the account details.

The system displays the following in the “Accounting Details” multiline based on the search criteria entered:

Note: The system retrieves all the account codes for which the initial balance entries have not been completed. If the process of entering initial balance entries is still under process, the system also retrieves the amounts entered.

Account Group	The account group to which the account codes belongs and for which you want to enter the initial balance.
Account Code	The code identifying the account.
Currency	The ISO currency code identifying the base currency or the parallel base currency.

Enter the following fields in the “Accounting Details” multiline:

Dr / Cr	Use the drop-down list box to select the debit or credit identifier of the account. The system displays the default identifier of the account group. For example, for the account group “Asset & Expenses” “Dr” (Debit) will be displayed by default and for “Liabilities, Capital and Revenue” “Cr” will be displayed by default.
Transaction Amount	The initial balance amount in the account currency (Decimal). The value entered in this field must be greater than or equal to zero.

Note: This field must not be left blank if “All” or “Base Currency” has been selected in the “Currency” field and the account currency is the same as the base currency of the company.

This field must be left blank if “Parallel Base Currency” has been selected in the “Currency” field.

When the “Base Currency” and the “Transaction Currency” is the same and if values have not be entered in this field, the system stores the value entered in the “Base Amount” field as the transaction amount.

Base Amount

The initial balance amount in the base currency of the company (Decimal). Mandatory. The value entered in this field must be greater than or equal to zero.

Note: This field must be left blank if “Currency” has been selected as “Parallel Base Currency”.

This field must not be left blank if “All” or “Base Currency” has been selected in the “Currency” field and the transaction currency is the same as the base currency of the company.

Parallel Base Amount

The initial balance amount in the parallel base currency of the company (Decimal). The value entered in this field must be greater than or equal to zero.

Note: This field must be left blank if “Currency” has been selected as “Parallel Base Currency”.

This field must not be left blank if “Parallel Base Currency” has been selected in the “Currency” field and the transaction currency is the same as the parallel base currency of the company.

The system displays the following:

Description

The textual narration of the account codes.

Click the “Compute” pushbutton to calculate and display the debit / credit totals of the base amount and the parallel base amounts.

The system displays the following:

Base Amount
Debit Total	The sum debit total of all the amounts in the base currency.
Credit Total	The sum credit total of all the amounts in the base currency.

Note: The debit total must be equal to the credit total for all the account codes for all the amounts entered in the base currency.

Parallel Base Amount
Debit Total	The sum debit totals of all the amounts in the parallel base currency.
Credit Total	The sum credit totals of all the amounts in the parallel base currency.

Note: The debit total must be equal to the credit total for all the account codes for all the amounts entered in the parallel base currency.

Check the box in the “Select” column of the multiline to mark the details entered for the account code for deletion.

Note: If the finance book maintains accounts in both the base currency and the parallel base currencies, the base amount and the parallel base amount must not be left blank if “Currency” has been selected as “All”.

The balance amount must not have a “Credit” identifier if the account code is a valid bank / cash code.

Click the “Save” pushbutton to save the balance details of the accounts

All the balance amounts entered are stored temporarily in a database till the “Create Initial Balance” is executed.

Note: If the initial balances are being created for the first financial period of a financial year, you cannot create initial balances for “Revenue” and “Expense” accounts.

Click the “Create Initial Balance” pushbutton to create the initial balance entries for the selected finance book.

The system updates the “Completed” status with respect to the initial balance entries for the selected finance book.

The system posts the initial balance entries as the opening balance entries in the “Main” finance book.

Prerequisite

“Base Currency” must have been defined in the “Create Company” activity of the “Organization Setup” business component.
“Parallel Base Currency” must have been defined in the “Create Company” activity of the “Organization Setup” business component if “Require parallel base currency” has been to set “Yes” at the company level.
“Financial Year” and “Financial Period” must have been defined in the “Create Calendar” activity of the “Accounting Setup” business component.
“Chart of Accounts ID” must be created and “Account Codes” must have been defined and mapped to “Account Groups” in the “Create Operative Chart of Accounts” activity of the “Accounting Setup” business component.
“Finance Book” of “Posting” type must have been defined in the “Create Finance Book” activity of the “Organization Setup” business component.