Opening Customer/Vendor Ledger Entries

I am loading opening Customer and Vendor Balances. I have seen some posts on this but require clarification…

  1. Create a new suspense account

  2. Add a general journal line and balance to the suspense account

  3. Post.

  4. Net result in G/L = 0.00, Customers balance is correct

BUT…

I have seen some posts that suggest i should also set the Receivables/Payables account to the suspese account before posting. Why woudl I need to do this…?

It depends upon your approach to loading up your opening GL position.

If you cange the posting to the suspense account, with the balancing account as the suspense account no tonly is the net affect in the GL 0.00 but it is also on the suspense account. If however you leave the customer/vendor posting as it is configured then your control accounts will be posted with your opening balances, so when you come to create the journal of the GL opening balances you need to remove the debtor and creditor figures from it.

Different approaches for different people. Neither is wrong, you just need to decide which one to do, and then not duplicate your debtors/creditors, or not have them in the system at all (from a GL perspective).

By the way you can not use a balancing account to the suspense, but instead have a final balancing line on the journal to post to suspense, depends upon your approach really.

Thanks, thats a great help. I think im going to post to the suspense account and leave the customer/vendor posting as it is. Then when i bring in the GL trial balance later on, I will balance this to the suspense account giving me a net result in suspense as 0.00 whilst maintaing my customer/vendor balances.

What a great site!