Item Opening Balances

Note: this method does not post any entries to the Balance Sheet, it only updates stock on hand levels and average costs. You will need to manually create a separate journal entry to capture the values.

When you first start your file there is no inventory information in it. Unless you are a new business, you are likely to have existing inventory that you need to enter and track so that your Saasu file is accurate and represents your true inventory position.

If you are using Saasu for a new business that has been created from scratch (i.e. you have no trading history) then generally you do not need to enter inventory opening balances. However, even a new business may need to enter opening balances depending on how your business is structured and established. A new business may have stock you build or assemble even though the business has had no sales activity yet. You will need to consult your accountant regarding how best to bring these items into your business (eg at what book value you bring them in).

Your previous accounting system will contain the information that you need to correctly transfer your closing inventory position to your new accounting system. Closing the period and doing a stocktake prior to this is a good idea, otherwise you might be bringing across inaccurate stock on hand. Note that you can edit inventory opening balances later so it’s not critical to close the period and do a stocktake, just good practice.

  1. Ensure all your inventory items have been set up or imported. To import your items, select View > Import or Export > Inventory Items. Also see the help note about importing inventory items to assist you with the process.
  2. Ensure unpaid sales or purchases have been entered in Saasu. This is because the following opening inventory number will be net of the inventory traded in those transactions. In a simplistic way, opening inventory is what you haven’t sold yet, not what hasn’t been paid for.
  3. From the Main Menu select Items > Items > Opening Balances link. You will be at the Setup Item Opening Balances screen. Enter the last date of your previous record-keeping system into the field provided.
  4. Enter the quantity of each inventory item from your previous accounting software and their unit cost – The line total will be calculated automatically.
  5. Click Save at the bottom of the list.

Large item lists greater than 500 items

If you are a high volume inventory business, we suggest creating your opening inventory via the Inventory Adjustment transactions (possibly by product category). Trying to capture everything in one opening balance screen for large volumes isn’t currently supported in Saasu.

  1. Select Items > Inventory Adjustment and add line items as required using the plus icon next to each item in the screen.
  2. Post to the Equity: historical balancing account (because you aren’t capturing these in the opening balances screens when using this method).

Note: Ensure that your Inventory Adjustment transaction contain 100 line items or less. You can try more up to say 500 but we can’t guarantee performance and screen load times at this volume of items inside each transaction.

Frequent Questions

My inventory item opening balances don’t appear in the balance sheet

The balances won’t display in the Asset accounts by entering item opening balances. This is because when you enter your opening balances for the chart of accounts, Saasu captures in that area (View > Accounts > Opening Balances). Saasu doesn’t post a balance to the Asset account in the Inventory Opening Balancesscreen to avoid a double up – Saasu just creates the inventory quantity and value such as average cost. Once you enter the chart of accounts opening balances you will capture the value from there into, for example, an Asset: Stock on Hand account.