How to Opening Balance

Opening Balance represents your business's financial position before you begin using LocalizeBook. Completing the setup ensures that your financial reports accurately reflect your existing balances from your previous accounting system.

Opening Balance Workflow:

1. Import Chart of Accounts, Item List, Vendor List and Customer List.
2. Record the opening Trial Balance using a Journal Entry.
3. Use Batch Transaction to import Outstanding Accounts Payable (AP), Outstanding Accounts Receivable (AR), and Opening Stock Balance.
4. Verify your financial reports, including the Trial Balance (TB), Accounts Receivable (AR), Accounts Payable (AP), Inventory, Profit & Loss (P&L), and Balance Sheet (BS).

All the templates are provided by this link:

Click to download all templates

Import and Batch Transaction

LocalizeBook allows you to import master data and process batch transactions, making it easier to migrate your existing accounting data into the system. Using these features helps reduce manual data entry, improve accuracy, and speed up your opening balance setup.

You can use Import and Batch Transaction for the following:

Import:

1. Chart of Accounts
2. Items
3. Vendors
4. Customers
5. Stock Balance

Batch Transaction

1. Opening Trial Balance (Journal Entry)
2. Outstanding Accounts Payable (AP)
3. Outstanding Accounts Receivable (AR)
4. Clearing Opening Balance Accounts (Journal Entry)

1. Import Chart of Account

Import your Chart of Accounts into LocalizeBook using the provided template. This allows you to quickly create your account list and prepares your business for recording opening balances and daily transactions.

Instead of creating each account manually, you can use the Import Chart of Accounts feature to upload multiple accounts at once using the provided Excel template.

Before You Begin

Before importing your Chart of Accounts, make sure that:

• The Chart of Accounts template has been downloaded.
• All required fields are completed correctly.
• The file is saved in the supported format.
• Account codes and account names are unique.

Follow these steps to import your Chart of Accounts:

1. Go to Accounting.
2. Select Import.
3. Click Import Chart of Accounts.

1. Click Browse File to select the "Import Chart of Account" template you downloaded in the first step.
2. Click Import to import your Chart of Accounts into LocalizeBook.

2. Import Item

Import your items into LocalizeBook using the provided template. This allows you to quickly create multiple Stock Part & Service and Stock Assemble items, preparing your business for purchasing, sales, inventory management, and daily operations.

Instead of creating each item manually, you can use the Import Items feature to upload multiple item records at once using the provided Excel template.

Before You Begin

Before importing your items, make sure that:

• The Items template has been downloaded.
• All required fields are completed correctly.
• The file is saved in the supported format.
• Item codes and item names are unique.
• The correct Item Type is selected before importing.

Follow these steps to import your items:

1. Go to Accounting.
2. Select Import.
3. Click Import Item.

1. Click Browse File to select the "Import Item" template you downloaded in the first step.
2. Click Import to import your items into LocalizeBook.

3. Import Vendor

Import your vendors into LocalizeBook using the provided template. This allows you to quickly create your vendor list and prepares your business for purchasing and Accounts Payable (AP) transactions.

Instead of creating each vendor manually, you can use the Import Vendor feature to upload multiple vendor records at once using the provided Excel template.

Before You Begin

Before importing your vendors, make sure that:

• The Vendor template has been downloaded.
• All required fields are completed correctly.
• The file is saved in the supported format.
• Vendor codes and vendor names are unique.

Follow these steps to import your vendors:

1. Go to Accounting.
2. Select Import.
3. Click Import Vendor.

1. Click Browse File to select the "Import Vendor" template you downloaded in the first step.
2. Click Import to import your vendors into LocalizeBook.

4. Import Customer

Import your customers into LocalizeBook using the provided template. This allows you to quickly create your customer list and prepares your business for sales and Accounts Receivable (AR) transactions.

Instead of creating each customer manually, you can use the Import Customer feature to upload multiple customer records at once using the provided Excel template.

Before You Begin

Before importing your customers, make sure that:

• The Customer template has been downloaded.
• All required fields are completed correctly.
• The file is saved in the supported format.
• Customer codes and customer names are unique.

Follow these steps to import your customers:

1. Go to Accounting.
2. Select Import.
3. Click Import Customer.

1. Click Browse File to select the "Import Customer" template you downloaded in the first step.
2. Click Import to import your customers into LocalizeBook.

5. Use Journal Entry (Open Trial Balance)

A Trial Balance is a report that shows the closing balances of all accounts in the general ledger at a specific point in time. Recording the opening Trial Balance ensures that your financial reports in LocalizeBook begin with accurate balances from your previous accounting system.

There are two methods to record your opening Trial Balance:

• Recommended Method – Manual Journal Entry: Record your opening Trial Balance manually using the Journal Entry function. This method allows you to review and verify each account balance before saving the journal entry.
• Alternative Method – Batch Journal Entry: If you have a large number of accounts, you can use the Batch Journal Entry feature to upload your opening Trial Balance using the provided Excel template.

Follow these steps to record your opening Trial Balance manually:

1. Go to Accounting.
2. Click Journal Entry.

1. Click Add “Journal Entry”

1. Select the opening balance date.
2. Enter all account balances from your Trial Balance (TB) into the journal entry.
3. Click Save & Close to complete the journal entry.

Note:

1. If you're entering Accounts Receivable (AR) → use Type: Other Current Asset
2. If you're entering Accounts Payable (AP) → use Type: Other Current Liability

6. Batch Outstanding AP

Process your outstanding Accounts Payable (AP) in LocalizeBook using the Batch Purchase & Purchase Return feature. This allows you to quickly record unpaid purchase bills and purchase returns from your previous accounting system.

Instead of entering each outstanding purchase transaction manually, you can use the Batch Purchase & Purchase Return feature to process multiple outstanding Accounts Payable (AP) transactions at once using the provided Excel template.

Before You Begin

Before processing your outstanding Accounts Payable (AP), make sure that:

• The Outstanding AP (Purchase and Purchase Return) template has been downloaded.
• All required fields are completed correctly.
• The file is saved in the supported format.
• All vendors have already been imported into LocalizeBook.
• The Accounts Payable account has been created in your Chart of Accounts.

Follow these steps to process your outstanding Accounts Payable (AP):

1. Go to Accounting.
2. Select Batch Transaction.

1. Select Purchase & Purchase Return as the Transaction Type.
2. Select the Accounts Payable account.
3. Click Browse File to select the "Batch Outstanding AP" template you downloaded in the first step.
4. Click Import to process your outstanding Accounts Payable (AP) transactions in LocalizeBook.

7. Batch Outstanding AR

Process your outstanding Accounts Receivable (AR) in LocalizeBook using the Batch Invoice & Sales Return feature. This allows you to quickly record unpaid invoices and sales returns from your previous accounting system.

Instead of entering each outstanding sales transaction manually, you can use the Batch Invoice & Sales Return feature to process multiple outstanding Accounts Receivable (AR) transactions at once using the provided Excel template.

Before You Begin

Before processing your outstanding Accounts Receivable (AR), make sure that:

• The Outstanding AR (Invoice and Sale Return) template has been downloaded.
• All required fields are completed correctly.
• The file is saved in the supported format.
• All customers have already been imported into LocalizeBook.
• The Accounts Receivable account has been created in your Chart of Accounts.

Follow these steps to process your outstanding Accounts Receivable (AR):

1. Go to Accounting.
2. Select Batch Transaction.

1. Select Invoice & Sales Return as the Transaction Type.
2. Select the Accounts Receivable account.
3. Click Browse File to select the "Batch Outstanding AR" template you downloaded in the first step.
4. Click Import to process your outstanding Accounts Receivable (AR) transactions in LocalizeBook.

8. Batch Stock Balance

Import your opening stock balance into LocalizeBook using the Import Stock Balance feature. This allows you to quickly record the opening quantities and values of your inventory from your previous accounting system.

Instead of entering each stock item manually, you can use the Import Stock Balance feature to upload multiple opening stock balances at once using the provided Excel template.

Before You Begin

Before importing your opening stock balance, make sure that:

• The Stock Balance template has been downloaded.
• All required fields are completed correctly.
• The file is saved in the supported format.
• All inventory items have already been imported into LocalizeBook.
• The Opening Balance Equity account has been created in your Chart of Accounts.
• The warehouse has been created before importing the stock balance.

Follow these steps to import your opening stock balance:

1. Go to Accounting.
2. Select Import.
3. Click Import Stock Balance.

1. Select the Open Date.
2. Select the Opening Balance Equity account.
3. Select the warehouse.
4. Click Browse File to select the "Import Stock Balance" template you downloaded in the first step.
5. Click Import to import your opening stock balance into LocalizeBook.

9. Journal Entry - Clear Opening Balance

After recording your opening trial balance and processing your outstanding Accounts Receivable (AR), Accounts Payable (AP), and opening stock balance, you need to clear the temporary opening balance accounts. This ensures that the balances are transferred to the correct accounts and your financial reports accurately reflect your opening balances.

Note: Use the balances of Accounts Receivable - Old, Accounts Payable - Old, and Inventory Assets - Old from your previous Trial Balance when creating the clearing journal entry.

1. Go to Accounting.
2. Click on Journal Entry

1. Click Add "Journal Entry"

1. Select the correct date you Clear AR and AP old.
2. Input Account AR And AP Old From Full Trial Balance (TB).
3. Click “Save & Close” to finish

View Reports

After completing the opening balance setup, review the following reports to verify that your opening balances have been recorded correctly.

The following reports are recommended:

1. Report Trial Balance
2. Report Outstanding AP By Vendor
3. Report Outstanding AR By Customer
4. Report Stock Value Summary
5. Report Profit & Loss
6. Report Balance Sheet

1. Report Trial Balance

The Trial Balance report displays the balances of all accounts in the general ledger. Review this report to verify that your opening balances have been recorded correctly.

Follow these steps to view the Trial Balance report:

1. Go to Report.
2. Select Company & Finance.
3. Click Accountant.

1. Select Trial Balance as the Report Type.
2. Select the reporting date.
3. Click View to display the report.

1. This below is a template of the Report Trial Balance

2. Report Outstanding Accounts Payable (AP) by Vendor

The Outstanding Accounts Payable (AP) by Vendor report displays all unpaid purchase bills and outstanding balances for each vendor. Review this report to verify that your outstanding Accounts Payable (AP) have been recorded correctly.

Follow these steps to view the Outstanding Accounts Payable (AP) by Vendor report:

1. Go to Report.
2. Select Purchases & Payables.
3. Click A/P Report

1. Select Outstanding A/P by Vendor as the Report Type.
2. Select the reporting date.
3. Click View to display the report.

1. This below is a template of the Report Outstanding A/P By Vendor.

3. Report Outstanding Accounts Receivable (A/R) by Customer

The Outstanding Accounts Receivable (A/R) by Customer report displays all unpaid invoices and outstanding balances for each customer. Review this report to verify that your outstanding Accounts Receivable (A/R) have been recorded correctly.

Follow these steps to view the Outstanding Accounts Receivable (A/R) by Customer report:

1. Go to Report.
2. Select Sales & Receivables.
3. Click A/R Report.

1. Select Outstanding A/R by Customer as the Report Type.
2. Select the reporting date.
3. Click View to display the report.

1. This below is a template of the Report Outstanding A/R By Customer.

4. Report Stock Value Summary

The Stock Value Summary report displays the quantity and value of your inventory as of the selected reporting date. Review this report to verify that your opening stock balances have been recorded correctly.

Follow these steps to view the Stock Value Summary report:

1. Go to Report.
2. Select Stock.
3. Click Stock Valuation.

1. Select Stock Value Summary as the Report Type.
2. Select the reporting date.
3. Click View to display the report.

1. This below is a template of the Report Stock Value Summary.

5. Report Profit & Loss

The Profit & Loss report summarizes your business's revenues, costs, and expenses for the selected reporting period. Review this report to verify that your financial results have been recorded correctly.

Follow these steps to view the Profit & Loss report:

How to view Report Profit & Loss in the Localizebook:

1. Go to Report.
2. Select Company & Finance.
3. Click Accountant.
4. Select Financial Report.
5. Click Profit & Loss

1. Select Profit/Loss Standard as the Report Type.
2. Select the reporting date.
3. Click View to display the report.

1. This below is a template of the Report Profit & Loss Standard.

6. Report Balance Sheet

The Balance Sheet displays the company’s total assets and how the assets are financed, either through debt or equity. It can also be referred to as a statement of net worth or a statement of financial position. The Balance Sheet is based on the fundamental equation: Assets = Liabilities + Equity.

Follow these steps to view the Balance Sheet report:

1. Go to Report.
2. Select Company & Finance.
3. Click Accountant.
4. Select Financial Report.
5. Click Balance Sheet.

1. Select Balance Sheet as the Report Type.
2. Select the reporting date.
3. Click View to display the report.

1. This below is a template of the Report Balance Sheet