What is Opening Balance?
The debit or credit balance of a ledger account brought forward from the old accounting period to the new accounting period is called opening balance. This will be the first entry in a ledger account at the beginning of an accounting period.

Let's see how to add Opening Balances in ProfitBooks:

Go to Accounting > Chart of Accounts > New Account



Fill in the below details :

Account Name - Mention the account name.

Account Group - Select account group from the drop down

Effective Date - The date you will start using the balance.

Opening Balance - Enter the amount, and Enter negative amount for credit opening balance.

Save and it's Done !!

Let's see how to add Opening Balances in Customers's account:

Go to Income > Customers, click on Add new customer.

Customer's Opening balance

Fill in the below details :

Customer name, phone no., email and website.

Tax Information: Gst registration details, PAN, VAT etc.

Billing Information: Here fill the amount in opening balance.Enter negative amount for credit opening balance., Date, credit days, etc.

Address of customers

Save and it's Done !!

Let's see how to add Opening Balances in Vendor's account:

Go to Expenses > Vendors, click on Add new vendor.

Vendor's opening balance

Fill in the below details :

Vendor's name, phone no., email and website.

Tax Information: Gst registration details, PAN, VAT etc.

Billing Information: Here fill the amount in opening balance.Enter negative amount for credit opening balance., Date,etc.

Payment Information: Payment details.

Address of vendor.

Save and it's Done !!

You can also read about

How to add Custom Fields on Invoices?
How to record Journal Entries
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