# How To Enter GL Opening Balance

The **opening balance** is the first entry in a firm's accounts, either when they are first starting up or at the start of a new financial year.

The **opening balance** can be found on the credit or debit side of the ledger, depending on whether or not the firm has a positive or negative balance.

### How to Configure:

**Step 1:** Navigate to **Accounting** then select **Chart of Accounts** from the menu which looks like the one shown below;

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2013-53-54.png?version=1\&modificationDate=1561121694360\&cacheVersion=1\&api=v2\&width=850)

**Step 2:** Click on **+Add account**

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2013-55-29.png?version=1\&modificationDate=1561121810619\&cacheVersion=1\&api=v2\&width=850)

**Step 3:** Create GL accounts for **Assets, Liabilities, Income, Expenses,** Here I am adding it for "**Assets**"

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2013-59-08.png?version=1\&modificationDate=1561122287347\&cacheVersion=1\&api=v2\&width=850)

**Step 4:** Similarly create GL accounts for **Liabilities**, **Income**, **Expenses**

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2017-10-18.png?version=1\&modificationDate=1561134341172\&cacheVersion=1\&api=v2\&width=850)

**Step 5:** Create a GL account "**Opening Balances Contra Account"** with account type "**Equity**"

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2017-48-28.png?version=1\&modificationDate=1561136116755\&cacheVersion=1\&api=v2\&width=850)

You can see this GL account in chart of accounts like in the image shown below:

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2017-57-45.png?version=1\&modificationDate=1561136598782\&cacheVersion=1\&api=v2\&width=850)

**Step 6:** Next go to **Accounting** then click on **Accounts Linked to Financial Activities** from the menu

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2018-04-09.png?version=1\&modificationDate=1561136701431\&cacheVersion=1\&api=v2\&width=850)

**Step 7:** Click on **+Define New Mapping** to define financial activity

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2019-14-28.png?version=1\&modificationDate=1561140986147\&cacheVersion=1\&api=v2\&width=850)

**Step 8:** In **Financial Activity Mapping** set "Financial Activity" drop down as **"Opening Balance Transfer Contra"** and set "Account" drop down as **"Opening Balances Contra Account (OB21)"**

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2019-21-36.png?version=1\&modificationDate=1561141747359\&cacheVersion=1\&api=v2\&width=850)

**Step 9:** Next navigate to **Accounting** then click on **Migrate Opening Balances**

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2019-31-05.png?version=1\&modificationDate=1561141929147\&cacheVersion=1\&api=v2\&width=850)

**Step 10:** Select the appropriate **Branch**  and **Currency** from the drop down and click on ![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/12.png?version=1\&modificationDate=1476946488559\&cacheVersion=1\&api=v2\&width=75)

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/Screenshot%20from%202019-06-21%2019-36-50.png?version=1\&modificationDate=1561142775308\&cacheVersion=1\&api=v2\&width=850)

**Step 11:** Next define the **Opening balances**, a sample entry is shown in the screenshot below:

{% hint style="danger" %}
Sum of all the credits must be equal to sum of all debits.
{% endhint %}

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/13.png?version=3\&modificationDate=1561151673675\&cacheVersion=1\&api=v2\&width=850)

**Step 12:** On clicking  submit **Opening Balances** are set.

![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/14.png?version=4\&modificationDate=1561152060629\&cacheVersion=1\&api=v2\&width=850)


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