Odoo Accounting Migration - Opening Balance Journal Entries
Updated: Sep 21, 2021
Before Go Live with Accounting, it is an essential step to migrate of the opening balances from the external system to Odoo, unless, you don't mind to manually create all the invoices, payments, etc, from the scratch and all over again.
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Opening balance is the credit and debit balances in the GL that was brought forward from old accounting period to the new accounting period. Similarly, to start using Accounting, before the financial year closing, opening balances migration will allow you to have your retained earning, payable, receivable, etc. from the old system, into the Odoo.
One of the migration method is to create the opening balance journal entries, amongst others. The accountant will have to prepare the opening balances, something like below (over-simplified version).
Pre-requisite is that the Chart of Accounts are already been migrated.
Opening Journal Entry will use the Miscellaneous Journal type.
For each Account Payable (AP) and Account Receivable (AR), the partner (company) must be entered, so that you may reconcile it when the payment is made.
For AP, you will credit and for AR, you will debit it.
You must credit to a "Retained Earning" account to balance it, because total Debit must be equivalent to Total Credit.
If it is a foreign currency (eg, USD), you may want to enter the USD amount in the "Amount Currency" and the converted amount in the Debit or Credit.
Once the opening journal is posted, Odoo Accounting is ready to use.
Having said that, because historical opened Invoices or Vendor bill are not migrated, but merely the migrated Account Payable or Receivable's journal entries, when you have received the payment from Customer, or make payment to Vendor, you will have to do the manual payment matching.