Projects/OpenBalances/User Documentation
Contents |
Introduction
Background
Accounting is based on double entry system. Some accounts creates a balance when an amount is debited and closes the balance when credited (or opposite depending nature).
An ERP system holds tons of transactions and to understand the open balance of an account sometimes is hard due to that fact. Being able to hide info not related to open items is really useful when trying to explain the balance of an account.
All of those entries which have been debited and credited (invoices which have been paid for example) are not helping to understand the open balance and sometimes make really difficult their analysis.
Goal
The goal of this project is to create a mechanism that allows removing those entries from the ledger which results in a 0 balance so that the number of entries is drastically reduced.
To achieve this goal, a new parameter will be added to general ledger report to be able to show only open balances.
Configuration
There is no user configuration required. Open Balances will start working just for new transactions. If you need to revisit historical data, a new process has been provided:
Open balances: Review historical data
This process revisits accounting entries trying to populate required info. It sets both link and balancing date for historical records. You can launch it one time from process request and it will apply at system level
Others
You can visit General Ledger Report documentation to review the new option (show open balances) which hides balanced transactions.