If you are migrating from a legacy accounting system like Tally or a Fox Pro based software please refer the below post to understand how to go about it.
1. You need to decide on a closing date in your legacy accounting system and close your balance sheet for that period.
2. In ERPNext you will need to update the opening balances for all your assets and liabilities accounts and enter all the outstanding sales and purchase invoices. This will help you to track the outstanding of the legacy system in ERPNext.
3. Create the required accounts in the ERPNext Chart of Accounts if those accounts are not available in the default Chart of Accounts.
You need to create 2 Journal Vouchers: 1. To enter opening balances for all asset accounts except customers (Customer outstandings should be added by creating sales invoices)
2. To enter opening balances for all liability accounts except suppliers (Supplier outstandings should be added by creating purchase invoices)
1. Create Vouncher to Update Opening Balances of Assets
Go To Accounts-->Journal Voucher-->New Journal Voucher
1. Select Voucher Type as "Journal Entry" 2. Select the Voucher Date: Date on which the transaction is entered in the system 3. Select the Posting Date: Date on which the accounting ledger effect takes place
Scroll down to the "Add/Edit GL Entries" Table. Select the respective asset account. All the balances are adjusted against a Temporary Account(Liabilities).
Now scroll down to the Additional Info Section and Select Is Opening as "Yes"
Now click on the Save button on the top.
Once you save the voucher a number is auto generated and a "Submit" button will appear. You can still edit the voucher. Once you click on the Submit button the voucher is freezed and the accounting ledgers effect takes place.
2. Create Vouncher to Update Opening Balances of Liabilities
Similarly you can create a voucher to update opening balances for the liability account. In this voucher you need to balance the entry against "Temporary Account (Assets) as shown below.
Now you need to create Sales Invoice for your customer outstanding carried over from the legacy system and Purchase Invoice for supplier outstanding.