Best practices in Opening Balances Ledger & Subledger

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Posted on by ahmed.kimo

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Hi Good community ,

I have doubt regarding of= opening balances , I have a new customer that he needs to enter the GL balances as an opening balances in the general ledger at the same time there are Fixed Assets that are part of opening balance journal in GL, Also we are in need to create each individual asset in the Fixed Assets module , What is the best practices to avoid the duplication between the two opening journals in GL and FA modules .

Moreover herewith an example of the BS including the assets .

Balance Sheet Example
Assets			Liabilities
Amount		---------------	Amount
100,000	Fixed Assets		40,000	Accounts Payable
20,000	Cars		110,000	Owners Equity
15,000	Computers
65,000	Building
50,000	Current Assets
50,000	Cash
150,000			150,000

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André Arnaud de Cal... 299,576 Super User 2025 Season 2 on at

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RE: Best practices in Opening Balances Ledger & Subledger

Hi Ahmed,

Usually, I start with the subledger. My recommendation is to use a intermediate conversion account as offset. Then all assets, open customer transactions etc. are posted as offset on the conversion account. If you then look at the opening balances, you can use the same conversion account as replacement for the assets, customer balance, etc. In that case, it should clear the balance on the conversion account.

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ahmed.kimo 536 on at

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RE: Best practices in Opening Balances Ledger & Subledger

Hi André ,

Thanks for your reply ,

I understand your suggestion , Still I doubt if the customer dose not enter the Subledger entries at the same time of creating the GL ,in this case there will be no meaning of the created OB in GL till complete all of the Subledger entries , And what you are suggesting in this case.

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Ludwig Reinhard Microsoft Employee on at

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RE: Best practices in Opening Balances Ledger & Subledger

Hi ahmed,

Everything that is posted through the subledgers (AP, AR, FA, project balances) has to be excluded from the other balance transfers that you do in GL otherwise you have a double counting on some accounts.

Best regards,

Ludwig

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ahmed.kimo 536 on at

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RE: Best practices in Opening Balances Ledger & Subledger

Hi Ludwig,

I see , if this is the case we must upload OB for GL as well as OB for subledger , otherwise we will not have a completed OB task , Is that correct ?

Another thing , Suppose i'm going live by finance without SCM and we have included the OB for the warehouses without inventory OB after sometime (maybe 3 months in the next quarter of the fiscal year) we have to run the SCM as well how we can exclude these balances in the next upload , Any suggestions

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Satish Panwar 14,671 Moderator on at

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RE: Best practices in Opening Balances Ledger & Subledger

Hi ahmed.kimo,

Start with Sub-ledger as Mr. Andre mentioned (you can adjust your posting profile in such a way that both side of the entries get posted to same account. This would get you required sub-ledger account. From a GL perspective, the GL balance is going to be zero. Then migrate the GL OB via regular General Journal entry. Make sure your sub-ledger and GL balances match.

Similarly, you can do it for any activity going forward. If you already have GL balance for inventory but don't maintain the inventory sub-ledger, then when you do migrate inventory then make post inventory so that it's hitting same GL account (regular + offset). Just make sure the inventory that you upload matches with the GL account balance that already exists with in AX. Hope this helps.

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Rahul Mohta 21,032 on at

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RE: Best practices in Opening Balances Ledger & Subledger

of the two approach which one is customer confortable?

1) offset to same account at GL level but getting subledger balance up

2) offset to a clearing account

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Ludwig Reinhard Microsoft Employee on at

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RE: Best practices in Opening Balances Ledger & Subledger

Good Morning ahmed.kimo,

The GL opening balance for a ledger account - let's say the other provisions account, which is not tracked in a subledger - is simply created by making a posting directly on this account. We usually do this for the last day of the previous period and create the closing/opening postings with the standard AX/D365FO functionality thereafter.

As an example: Let's say your beginning balance on the 'other provisions' balance sheet account is $500 and that you want to start 01 Jan 2021 with your opening balance. Then we create a journal entry of $500 on the 'other provisions' account as of 31 December and then create the closing/opening transactions with the standard periodic process.

To your second question:

If you don't start with SCM right from the beginning then you can - for example - create a manual opening transaction similar to the 'other provisions' account that I mentioned before.

Note: Please use a separate ledger account for that purpose, otherwise reconciliation might get difficult later on when you start using SCM.

When you start using inventory then you do the following:

1. Clear the manual postings that you made on the SCM ledger accounts that you temporarily used. That is, make sure that the balance on this account is $0 through a manual journal entry in GL.

2. Transfer your beginning balances for your inventory via a movement or counting journal in the inventory module. This will automatically create the ledger transactions on the automatic postings account in your inventory posting matrix and ensure that your balance sheet is 'clean', that is, does not have any double counted amounts included.

Best regards,

Ludwig

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