Enter, Edit, or Delete Sage 50 Opening Balances

Enter, Edit, or Delete the Sage 50 Opening balances of Customer, Vendor, bank account, and General ledger account.

The opening balance represents your company’s financial position the day before you began using accounting. Accounting reports cannot give you an accurate picture of your financial position without exact opening balances.

You can enter the following opening balances:

• Outstanding customer transactions
• Outstanding vendor transactions
• Bank account balances
• General ledger trial balance values

How it works

To enter your opening balances, you’ll need your outstanding customer and vendor invoices and credit notes, your closing trial balance from your previous accounting period, and your bank statements. In addition, you will need to provide a list of unrepresentable bank items from your previous accounting system. A non-representable item is an item that was recorded in your previous accounting system but did not appear on your bank statement, such as a cleared check.

It is recommended that you begin using accounting at the beginning of each accounting period, whether it’s the beginning of a tax month, quarter, or fiscal year. After you’ve created your final trial balance from your previous system, you can use it when entering the opening balance. This ensures that the values you entered are accurate and matched.

Your opening balances can be entered at the same time or at different times, for example, you can enter your customer, vendor, and bank account opening balances now, and then enter the opening balances for the remaining general ledger accounts later.

If you’re moving from another system, you can import your customer and vendor opening balances.

Creating your customer, vendor, and bank account records, including loan accounts and credit cards, is the first step in entering opening balances.

Ultimate Guide to Working with Sage 50 Opening Balances for Your Accounts

From Settings and Business Settings, you can enter and manage all opening balances.

Steps to Enter the Accounts Start Date in Sage 50

You must enter your account start date before entering sage 50 opening balances, which should be the day you begin using Accounting. The only activity that can be dated before the accounts start date is entering opening balances.

1. Choose the Financial settings.
2. In the Account Start Date field, enter the date you will start using Accounting.
3. Select Save.

Steps to Enter your customer opening balances in Sage 50

1. Click on Customers under Opening Balance.
2. Click on New Opening Balance and enter the following information:
   • Customer: Choose the customer.
   • Date: Enter the date of the invoice or credit note. This date should be earlier than the date of opening the account.
   • Type: If you want to record an invoice, choose Bill. If you want to record a credit note, choose Cr Note.
   • Reference: A reference number, such as an invoice or credit note, should be entered for the opening balance.
   • Details: Please enter any additional information you may need, such as the purpose of the invoice or credit note.
   • Subtotal: Enter the amount of the invoice or credit note.
   • Tax Rate: If applicable, select the tax rate for this customer. The taxable amounts will be added to the total. The total will be updated accordingly.
3. In the event there are any outstanding payments on your account, you should enter them as credit notes. Later, you can allocate the credit notes to invoices.
4. Enter the following information if you have enabled foreign currency transactions, and the customer is in another country:
   • Total (currency symbol): If the customer is using US dollars, enter the amount in his/her base currency.
   • Exchange rate: If you use live exchange rates, this is the latest rate. If necessary, convert it to the rate used for the original transaction. The total price in your base currency automatically updates based on the foreign price and exchange rate.
5. Click on Save. Enter all outstanding invoices and credit notes for each of your customers by repeating these steps.
6. You enter the total amount on the sales ledger control account and the opposite entry is posted to the opening balance control account.

Steps to Enter your vendor opening balances in Sage 50

1. Click on vendor under Opening Balance.
2. Click on New Opening Balance and enter the following information:
   • Vendor: Choose the Vendor.
   • Date: Enter the date of the invoice or credit note. This date should be earlier than the date of opening the account.
   • Type: If you want to record an invoice, choose Bill. If you want to record a credit note, choose Cr Note.
   • Reference: A reference number, such as an invoice or credit note, should be entered for the opening balance.
   • Details: Please enter any additional information you may need, such as the purpose of the invoice or credit note.
   • Total (currency symbol): If you have any outstanding payments on your account, enter them as credit notes that can be allocated to invoices later.
3. Enter the following information if you have enabled foreign currency transactions, and the customer is in another country:
   • Total (currency symbol): If the vendor is using US dollars, enter the amount in his/her base currency.
   • Exchange rate: If you use live exchange rates, this is the latest rate. If necessary, convert it to the rate used for the original transaction. The total price in your base currency automatically updates based on the foreign price and exchange rate.
4. Click on Save. Enter all outstanding invoices and credit notes for each of your customers by repeating these steps.
5. This entry appears in the payables control account, and the opposite entry appears in the opening balance control account.

Steps to Enter your bank account opening balances in Sage 50

Note: Additionally, you can enter opening balances for bank accounts when creating new ones or when editing existing ones.

1. Click on Bank under Opening Balance.
2. Enter the following information:
   • Bank Account: You cannot change the routing number and account number for the bank account when you select it. You can change them from the Banking page.
   • Date: In the Accounts Start Date field, the opening balance should be dated before the account start date. If the start date is October 1, the opening balance should be dated September 30.
   • Type: Choose whether the balance is a debit or credit worth
   • Opening Balance: From your bank statement, enter your total bank account balance as of the date you used to determine your opening balance.
3. You will need to repeat these steps until you have entered the opening balances for every bank account. Record any bank items you entered in your previous accounting system that have not yet cleared your bank account on separate lines using the original transaction date. Once they appear on your statement, you can reconcile them.
4. Click on Save. Your bank’s opening balance will be reflected in your bank records and relevant ledgers.
5. Important Note: The opening balances for your bank accounts appear here if you have already entered them. You can change the opening balance if you have not reconciled it yet. If you reconciled it but need to change the amount, you can post an opposite entry. If you entered $5000 as a debit value, but the bank opening balance was $4000, then you should enter $1000 as a credit for that same bank.

Steps to Enter general ledger account opening balances in Sage 50

1. Click on the general ledger under Opening Balance
2. Confirm that the date is right.
3. Note: The default date is the day immediately preceding the date entered in the Account Start Date field. You shouldn’t change it.
4. Enter a reference for your opening balance.
5. Enter the rest of your trial balance as follows:
   • Ledger Account: Choose the account for that you are entering the opening balance.
   • Details: Enter additional details as required.
   • Debit: If the trial balance displays a debit value, enter it here.
   • Credit: If the trial balance displays a credit balance, enter it here.
6. You should repeat these steps until you have entered all your trial balance values. The opposite entry is posted in the opening balance account to ascertain the total debit and credit balance. This account should have a zero balance after you enter all the values from your trial balance. Make sure you have entered the correct values for each entry if not.
7. Note: If essential, you can save your opening balances without entering the full trial balances. The opening balance is a value in the account until you can enter the full trial balance.
8. Confirm that the opening balances entered match your trial balance.
9. Click on Save. Your opening balances will show in the applicable ledger accounts.

Change or Adjust your Sage 50 Opening Balances

The opening balance can be edited, deleted, or changed at any time if you have made a mistake.

It depends on the type and status of your opening balance and how you make the change.

Opening balance changes update the relevant ledger accounts. Any difference between the total debit and credit for all opening balances is entered against the opening balance ledger account (9998).

Edit or Delete a customer Sage 50 Opening Balances

1. You can change or delete a customer opening balance if it has been entered wrongly or by mistake.
2. Before changing the opening balance, you must unallocated any payments that have already been made or allocated.

Edit or delete an opening Balance

1. Proceed to Settings-> Business Settings, then scroll down to the Opening Balance section.
2. Choose Customer
3. Select the opening balance transaction, make the essential changes, and save it.
4. To delete an opening balance transaction, choose the Delete button next to the relevant opening balance transaction and delete it.

The opening balance has been paid or allocated

1. Once the opening balance has been allocated, it can’t be edited.
2. When an invoice has an opening balance, it means the invoice has been paid.
3. This indicates that a credit note has been allocated to an invoice or refund for opening balances that are credit notes.
4. Unallocated the opening balance is all you need to do before editing it.

Unallocated an opening balance invoice

1. Choose the suitable customer from Contacts, then Customers.
2. You can now open the payment that has been allocated to the opening balance.
3. Save the opening balance after removing the tick.
4. A message will ask if you want to save the payment as a payment on account. Click Yes. The payment can then be reallocated to the amended opening balance.

Unallocated a refund

Since a refund can be made only for the exact amount of the credit note being paid by them, the refund should be removed rather than unallocated.

Once you amend the opening balance, you can re-enter the refund if necessary.

1. Choose the relevant bank account under Banking.
2. Select the refund check box from the Activity tab.
3. Click on Delete

Edit or Delete Vendor/Supplier Sage 50 Opening Balances

You can change or delete a supplier/vendor opening balance if it has been entered wrongly or in mistake.

Before changing the opening balance, you must unallocated any payments that have already been made or allocated.

Edit or delete an opening Balance

1. Proceed to Settings-> Business Settings, then scroll down to the Opening Balance section.
2. Choose supplier/vendor
3. Select the opening balance transaction, make the essential changes, and save it.
4. To delete an opening balance transaction, choose the Delete button next to the relevant opening balance transaction and delete it.

If your opening balance has been allocated/paid

1. Once the opening balance has been allocated, it can’t be edited.
2. When an invoice has an opening balance, it means the invoice has been paid.
3. This indicates that a credit note has been allocated to an invoice or refund for opening balances that are credit notes.
4. Unallocated the opening balance is all you need to do before editing it.

Unallocated an opening balance invoice

1. Choose the suitable vendor/supplier from Contacts, then Customers.
2. You can now open the payment that has been allocated to the opening balance.
3. Save the opening balance after removing the tick.
4. A message will ask if you want to save the payment as a payment on account. Click Yes. The payment can then be reallocated to the amended opening balance.

Unallocated a refund

Since a refund can be made only for the exact amount of the credit note being paid by them, the refund should be removed rather than unallocated.

Once you amend the opening balance, you can re-enter the refund if necessary.

1. Choose the relevant bank account under Banking.
2. Select the refund check box from the Activity tab.
3. Click on Delete

Edit or Delete bank account Sage 50 opening balances

Here is how to update an incorrectly or mistakenly entered opening balance for a bank account.

Just amend the existing amount if the opening balance has not been reconciled.

It is not possible to change an opening balance that has already been reconciled. Enter a second opening balance to adjust the original wrong one.

Select Bank from the Opening Balances section at the bottom of Settings, then Business Settings.

Update an existing opening balance

Find the row for the relevant bank account and enter the updated amount if the incorrect opening balance has not been reconciled.

If you require change whether the opening balance was overdrawn or positive, change the Type:

1. When the opening balance is a positive amount, use the Receipt (Debit)
2. When the opening balance is overdrawn amount, use Payment (Credit).

Enter other opening balance

Add a new row at the bottom of the list if the bank account is already in use, but you haven’t yet entered an opening balance, or you want to update an opening balance that has been reconciled.

1. Enter a receipt (debit) to increase the original opening balance.
2. Enter a payment (credit) to reduce the original opening balance.

As an example, you entered and reconciled an opening balance of £100. Upon checking your bank account, you realize that you made an error and the opening balance should have been £90 instead.

The difference between the existing balance and the correct balance requires a second opening balance payment (Credit) of £10.

1. In the bank account column, select the bank account from the drop-down list.
2. Your account start date is entered in Settings, then Business Settings and Accounting Dates and the date before VAT will default.
3. Select whether the opening balance is a positive amount or an overdrawn amount:
   • For positive amounts, use a receipt (debit).
   • If the amount is negative, use Payment (Credit).
4. Enter the opening balance.

Delete an opening balance

1. Next to the relevant row, click the Delete button.
2. You cannot delete the bank opening balance if it has been reconciled. To remove the opening balance, enter an opposite opening balance instead,

How to Reconcile your Sage 50 opening balances

1. Open a bank account related to banking.
2. Choose Reconcile.
3. Enter the following information:
   • Statement Date: If you change this to the date of your opening balance, which is usually when your account started, it will filter out any subsequent transactions and make it easier to find your opening balance transactions.
   • Statement and Balance: Enter the total amount of your opening balance.
   • Reference: Reconciliation labels are just labels. If you use Opening Balance, you will be able to distinguish it from other reconciliations.
4. Select Apply
5. Select Reconcile next to the transaction to reconcile your opening balance.
6. Select Finish to complete the reconciliation.
7. Click Print to print the reconciliation details.

Edit or Delete ledger accounts Sage 50 Opening Balances

Change/edit or delete the opening balance for already entered the ledger account.

Edit or delete the Opening Balances

1. The Opening Balance section can be found under Settings, then Business Settings.
2. Choose Nominal Ledger.
3. Locate the relevant ledger account.
4. Do one of the following:
5. In the Debit or Credit column, change the amount.
6. By clicking the bin button next to the relevant entry, you can delete the opening balance.
7. Click Save.

How are your ledgers updated?

1. The total value of all the opening balances should balance as per the bookkeeping rules.
2. The total value of all the values in the Debit column must equal the total value of all the values in the Credit column.
3. If the Debit and Credit totals do not match, we add the difference to the special Opening Balances ledger account (9998) for this purpose.
4. As a rule, your opening balances should balance, so if you have values on your Opening Balance ledger account, check that you have entered the values correctly for your trial balance, your bank accounts, and your customers and suppliers.

Steps to edit or delete an opening balance in Sage 50

1. Access Opening Balances:
   To view the opening balance in Sage 50, navigate to the section or screen that displays the opening balance. You can find this by clicking on the link or option that says “Opening Balance”.
2. Remove an Account:
   Remove an account from the opening balance by clicking the “Remove” option next to the account in the list. As a result, the account will be removed from the opening balance.
3. Edit Customer or Vendor Opening Balance:
   The opening balance for a specific customer or vendor can be edited by clicking on the customer or vendor name. You will now be able to edit the opening balance. The “Edit Opening Balance” window will open. To save the changes, update the required details or values ​​and then click on “Save”.
4. Edit Bank or General Ledger Opening Balance:
   You can edit the opening balance of an account by finding the relevant line in the general ledger. Change the fields that need to be changed, such as the opening balance or account details. Save the changes by clicking “Save” after making the necessary edits.
5. Note: When you change your opening balances, if the general ledger opening balances page shows a difference between debits and credits, the different posts to the Opening Balances account (9100). Each item’s value should match the value on your trial balance. Before saving your opening balances, update any items that don’t match, and check that ledger account 9100 has no balance.

In the End!

With the right information and guidance, entering Sage 50 opening balances can be a straightforward process. We hope our tips have given you an overview of what to expect when setting up your opening balances in Sage 50 accounting and show you just how easy it is. Now that you know more about this important task, why not give it a try? Get started today and start building your business’s financial foundation with ease!

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