Opening Balance Dummy Account

Finance and Operations/AX User Forum
1

The procedure we perform the opening balance is

  1. post the journal in last year offset with dummy account

For example,

Dr main account

Cr dummy account

or

Dr dummy account

Cr main account

  1. run closing balance

  2. balance will bring forward to next year

However, we have question about the dummy account that we use to offset.

  1. Is this dummy account will bring forward to next year ? Is it OK to let the dummy account bringing forward to next year ?

  2. If we would like dummy account bringing forward balance to next year to be zero (0), how to do that ??

  3. If 1) and 2) cannot, did my opening balance procedure correct ? Please elaborate the correct way of doing this.

2

Ideally, trial balance should be balancing, that means the Debit and Credit balance should be same. Since while entering Debit balance, you are crediting dummy account and opposite for Credit balance, the dummy account should not have any balance. After the dummy account is balances (balance is 0), suspend the account for any transaction.

Since the balance is 0, there will be no impact when closing is performed.

Pranav…