Accounting > Opening Balance

When creating a new bookyear for a bookkeeping and also with the function 'Copy Opening Balance' (menu Bookkeeping > Financial), the balances of a last fiscal year can be copied. These are entered in the daybook BB. Changes in this daybook cannot be altered manually. With the function 'Clear daybook BB', the BB daybook can be cleared.

This daybook must have 'BB' as code and 'Opening balance' as type.

Notes attached to outstanding invoices will be transferred as well, unless these outstanding invoices already have notes in the new bookyear.

If the last fiscal year was not entered in Mill7, or if the opening balance needs to be corrected, the opening balance can be entered in the daybook BC.This is a daybook with type 'Opening balance corrections'.

When an opening balance of the last fiscal year is copied again, changes in this daybook remain unchanged. Only changes in the daybook BB will be deleted and re-created.

Afterwards the opening balance of the bank can be recalculated by using the function Recalculate bookkeeping totals.

In the opening balance the outstanding debtor and creditor amounts are booked per invoice, including VAT.

In menu Reports > Financial the report Opening balance can be started.

Important:

If the bookkeeping currency of the bookkeeping differs from the bookkeeping currency of the previous book year, the opening balance sheet cannot be carried over. This also applies if the number of positions of the account diagram differs from the previous book year, unless a conversion of the chart of accounts is carried out. The ability to perform a conversion of the chart of accounts is discussed briefly below.

Converting chart of accounts

If a new chart of accounts is applied in a new book year, it is possible to connect the old book year to the new one by means of a conversion. In fact, a translation is then made between the old and the new general ledger account numbers. The translation is made by indicating in the old book year which account numbers apply in the new year. This is done via Maintenance > Financial > General ledger by entering the new account number for each account in the External number 1 field. Also, the setting Convert chart of accounts to next bookyear must be activated when the balance sheet is transferred, via Maintenance > Settings > Book > Other. This setting also ensures that the balances of the new book year and the previous book year are consistent and can be compared in the balance sheet of the new year.

During the transfer of the balance sheet, it is assumed that all accounts referred to via External Number 1 are present in the following book year. Missing accounts will not be created in the new book year. For invalid accounts entered in External number 1, the journals in the opening balance will be use the differences account. The description of each line in the opening balance sheet reflect the details of the conversion: the intended account, the original accounts and whether an error has been detected. If errors are found, an error report will be displayed (in Excel). Once the errors have been corrected, the balance can be copied again.

The balance sheet cannot be copied from the previous book year in converted administrations prior to book year 2023. The opening balance will be cleared and remain empty.

For a detailed discussion on this topic, see the chapter Converting chart of accounts.