Temporary Opening

Temporary Opening, with account type Temporary, is the balancing account used once, when a company brings its opening balances into BRAccount. Each opening piece, stock through a Stock Entry, unpaid invoices through the Opening Invoice Creation Tool, bank, cash, assets and liabilities through an opening Journal Entry, uses this account as its other side, so the books stay balanced while the pieces arrive on different days. When the last piece is in, the debits and credits here cancel out, apart from the net equity of the old books, which is transferred to Retained Earnings or Share Capital by a final Journal Entry. After that the balance is zero; a figure left here is an unfinished migration.

Temporary Opening balance after loading = Opening assets - Opening liabilities - Opening equity entered; the remainder is cleared to Retained Earnings.

1. 01Go to Stock > Stock Entry > New, type Material Receipt, tick Is Opening and set Difference Account to Temporary Opening.
2. 02Submit. The entry above posts for Rs 4,50,000 of opening stock on Shrawan 1, 2083.
3. 03Load unpaid invoices with Invoicing > Opening Invoice Creation Tool and the rest with a Journal Entry marked Is Opening.
4. 04Open the Temporary Opening ledger from the chart and read the remaining balance.
5. 05Post a final Journal Entry moving that balance to Retained Earnings: Dr Temporary Opening, Cr Retained Earnings Rs 4,50,000.
6. 06Open Financial Reports > Trial Balance and confirm Temporary Opening shows zero.

Use as the other side of opening Stock Entries, opening invoices and the opening Journal Entry on Shrawan 1. Check it nets to zero afterwards.

Dr Stock In Hand Rs 4,50,000, Cr Temporary Opening Rs 4,50,000; then Dr Temporary Opening Rs 4,50,000, Cr Retained Earnings Rs 4,50,000 to clear it.