Balance in Temporary Account
Question:
We used a Temporary Opening Account for updating the opening balance. After having updated the balance in all the Balance Sheet accounts, is there still some balance in the Temporary Account? What is the cause of this balance, and how to make the balance in this account to zero?
Answer:
When updating an opening balance in iVendNext, you have to first ensure that the Balance Sheet in the previous system is tallying (Asset = Liability).
Then you start updating the opening balances for the above statement, using Temporary Opening as an account to balance the entry. In the end, when opening is updated for all Asset and Liability accounts, the Temporary account's balance becomes zero automatically.
If you still have balance in the Temporary Account, it could be for one of the two (or both) the reasons.
The Balance Sheet followed for updating the opening balance was not closed properly and its Asset and Liability value was not tallying.
When updating the opening balance in iVendNext, the Temporary Opening Account was not used consistently.
Kindly review the above points as they could be the cause of balance left in the Temporary Opening Account.