Create Initial Balance – A summary of the activity

You can enter the initial balances in two different currencies if the account currency and the base currency of the company are different.

Initial balance entries are made once when the installation is done for the first time or when the newly created tax book becomes effective for the first time. The tax year and period, account codes and tax books must be defined before the initial balances are entered. If the migration is done at the beginning of a tax year, you can enter all the closing balances of the previous year as the initial balance for the selected year. If you migrate in the middle of the year, the closing balances of the previous period can be taken as the initial balance for the selected period.

This page allows you to select the tax book and the account group under which the account codes are available. Based on the account group selected the debit / credit identifiers are retrieved for the account codes, which could be changed if required. For a selected tax book you can enter the balance amounts in the account currency and the base currency of the company. You can also calculate the debit and the credit totals of the amounts in the base currency of the company.

This page also provides you the facility to save the balance details temporarily till all the initial balances have been entered. Once the initial balances have been created for the selected tax book, you cannot modify any of its details or add initial balances for any of the account codes in the finance books. The status with respect to the initial balance for the selected tax book is updated to “Completed”. The tax book can be closed after the initial balance has been completed for the first relevant period.