Opening Entries for NAV, this how I do it, how about everyone else? comments?

For starters, I am converting a client from an accounting package to NAV. We are not doing this at year end, we are just picking a cut off date, and doing the conversion. Let’s say the cut off date is today, Jan. 19.

For AP, I see what is in the AP account as of Jan. 19. All open AP entries should equal this amount. I use a dataport and and import in all the open AP entries into a purchase journal. The balancing account will be the AP account itself. An example.

vendor # 123 CR 200, balancing account would be DR 200 (to the AP account)

This way my journal balances, and I have my new opening entries.

I do the exact same thing on the AR side.

So my purchase and sales journals balance to zero, and then when i import in my Trial Balance (as of Jan. 19 ) into a general journal, and post it, Everything Balances.

One question i have is about inventory, and i may need help here. Now would i take an inventory valuation as of Jan. 19, let’s say it’s DR 20,000.

To bring in my opening item quantities, I would just do an item journal, tag all the lines as a ‘positive adjustment’ , enter in all my items, and the total of all my item journal lines should equal 20,000. But before I post, I would change the inventory adjustment account to the inventory account, so when i post the item journal, it would net my inventory account to zero, but then my opening cost would show up for my items.

That is how i think the inventory can be done. Anyone have any comments?

Exactly how I have done it for 10 years, see my answer to the stock query this afternoon. Its the easiest and simplest way, and sub ledgers are guaranteed reconciled.

Sorry Andrew, just making sure I understand, you will be updating this post later on this afternoon about how you do opening inventory?

Yes this is correct. Just for additional info if you wish to see you can check this as well (taking care of client’s exception)

Kapil, take a look at my other post about the proper way to bring in historical GL data, thanks.

I prefer not to alter the posting accounts, instead post the TB to the adjustment/data take on, this means all my entries are correctly posted to the asset account at the start. However I usually discuss this with the accountant and we do it how they want to do it and they prefer to see the entries in the system, I just give them the options and discount ones where they have not considered the wholistic system requirements.

For the inventory opening balance consider using Posting Type = Purchase against Posting Type = Positive Adjustment as different accounts can be updated.