QuickBooks | Opening Balance – The outstanding supplier bills
Software: Intuit QuickBooks accounting software
Instead of entering the outstanding supplier bills as a lump sum in the Opening Balance field of the supplier profile, you may record the bills separately. For example, you owe supplier “Permanent Temp Service” 3 bills with a total of $15,000.00 as of your crossover date (usually is the closing date of the last financial year), you may record it as 3 separate bills in the QuickBooks instead of just $15,000.00 as a whole in the Opening Balance field of the supplier profile.
The Date and Ref Number may follow the original bill so you can make payment accordingly and age the payable correctly.
Under the Expenses tab, you should select the Opening Balance Equity account with a “Non” GST code and enter the outstanding amount in the amount field. The reason for using the “Non” GST code instead of the standard rated GST code is because the GST payable or receivable will be recorded separately via a General Journal according to the Balance Sheet as of the crossover date.
Opening Balance Equity account is a QuickBooks system account which is used to capture the opening balances.