Table of Contents
Introduction
In ➡️ this article we went through the first phase of creating sales and purchase opening entries. In other words, by now you should have created your outstanding transactions as opening entries against a temporary Opening Balance Adjustment Accounts and the Accounts Receivable/Payable within your sales and purchase ledger.
Here we'll explain how to finalise the sales and purchase opening entries creation process. Just create regular journals to clear out the temporary Opening Balance Adjustment Accounts and distribute its balance across the relevant income and expense accounts in the nominal ledger.
You can create these special journals manually or through CSV (or XLSX) import.
Below are the detailed steps for both processes. ⬇️
Create a Sales and Purchase Balance Journal
Manual Journals
You can follow this article to create and post regular journals. However, for this specific scenario, go to Nominal > Posting > Nominal Journal and ensure that:
In the journal header:
The Date is exactly one day before the start of the financial year in your new Indigo Business account.
The Ext Ref is Opening Balances Nominal Sales or Opening Balances Nominal Purchases.
In the line items section:
You create a single credit line:
Item detail: Opening Balances Clients or Opening Balances Suppliers
Nominal Account: the temporary Sales Opening Entries Adjustments or Purchases Opening Entries Adjustments account. More on them ➡️ here.
Local (EUR): the chosen temporary account current full balance (e.g. 1000). Check it ➡️ here.
VAT: select Z.
You create as many debit lines as required to distribute the full temporary account balance across the income or expense accounts:
Item detail: Opening Balances Clients or Opening Balances Suppliers
Nominal Account: the relevant sales (revenue) or purchases (expense) nominal account which needs to receive a certain amount from the temporary account.
Local (EUR): the relevant amount distribute to the chosen account.
VAT: select Z.
When ready, just post your journals. 📩
🧠 Tip
You can confirm the Sales Opening Entries Adjustments or Purchases Opening Entries Adjustments current account balance in Nominal > General > Nominal Accounts > Balance column.
We recommend creating one journal to clear the Sales Opening Entries Adjustments balance and a separate journal to clear the Purchases Opening Entries Adjustments balance.
Import Journals
Import Journals
Filling the Import File
Go to the Drafts > Transactions tab and download an empty csv template file for Transactions.
Complete in the file as follows.
Debit Lines
Enter these fixed values:
ImportBatchGrouping: OBA
⚠️ This identifies the import as opening entries rather than regular transactions. The same CSV template is used for both transaction types.
Book: Nominal
TransactionDate: exactly one day before the start of the financial year in your new Indigo Business account.
TransactionType: Journal
VatCode: Z
VAT must be included in the Amount column.
DebitCredit: Debit
VatAmount: 0
Enter these other values based on your data:
TransactionParticipantDescription: Clients or Suppliers.
TransactionReferenceExtra1: Opening Balances Nominal Sales or Opening Balances Nominal Purchases
NominalAccountCode: the relevant sales (revenue) or purchases (expense) nominal account code that will receive part of the temporary account balance.
ItemDetail: Opening Balances Clients or Opening Balances Suppliers
CurrencyCode: the company base currency (e.g. EUR)
Amount: the relevant amount to distribute to the selected account.
❗ Insert as many debit lines as required to distribute the full temporary account balance across the relevant income or expense accounts.
Credit Line (single line):
Complete the same columns as the debit lines, except for the following:
NominalAccountCode: the temporary account code
Sales Opening Entries Adjustments
orPurchases Opening Entries Adjustments
DebitCredit: Credit
Amount: the current full balance of the chosen temporary account.
To find the temporary account balance, go to: Nominal > General > Nominal Accounts and note the value in the Balance column.
Importing the File
Return to Drafts > Transactions and ➡️ import the completed csv file.
Review the import result.
Select Commit to post the imported lines.
The Result
After posting your balancing journals, you will be able to view the posted journal in Nominal > General > Audit Trail. ⬇️
In Nominal > General > Nominal Accounts, you can verify that:
The Sales Opening Entries Adjustments or Purchases Opening Entries Adjustments temporary accounts are cleared out to zero balance, as expected.
The opening entries amounts have been correctly distributed to the chosen income or expense accounts.
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