This is what happens in the video
When you migrate to a new Business Central environment, the general ledger opening is typically the last opening you post. You handle the subledgers first, such as customers, vendors, inventory, bank, and VAT, and then close out with the general ledger balance. This article walks through how to post that final general ledger opening and how to verify that everything reconciles.
Before you post the general ledger opening, your chart of accounts should show a total net change of zero. The amounts you posted on the subledgers offset each other in the general ledger, so the net effect is zero until you create the actual opening entries.
You post the general ledger opening in a general journal. Enter a document number such as “GL opening”, the account you want to post to, and the amount. The journal must balance to zero in total, so you do not use a balancing account on each line. Instead, you enter all the account lines, and the sum of everything must end at zero.
You can reconcile directly from the opening journal before you post. Check that your customer accounts match the total on the customer ledger entries, your bank accounts match the bank ledger entries, your inventory accounts total up to the inventory value, and your VAT accounts match the VAT entries. This confirms that the general ledger opening agrees with the subledger openings you already posted.
A safe practice is to copy the company to create a test company, post the opening there, and confirm that it reconciles correctly before you post in the live environment. That way you catch any discrepancies without affecting your real data.
If you go live on the first day of a year or a period, you only open your balance accounts, since there is no profit and loss activity to carry over. But it is also possible to open in the middle of a period. In that case you post to your revenue and cost accounts as well, so the general ledger reflects the activity that has already happened during the period.
Verifying the general ledger opening after posting
Once you post the general journal, the opening is complete. The general ledger entries now include all your openings, and the chart of accounts shows the correct balances. The final step is to confirm that everything reconciles against the subledgers one more time, so you know the opening is correct before you start working in the new environment.
Q&A
Why is the net change in the chart of accounts zero before I post the general ledger opening?
Because the subledger openings you already posted, such as customers, vendors, inventory, bank, and VAT, offset each other in the general ledger. The net effect stays at zero until you create the actual general ledger opening entries.
Do I need a balancing account on each line in the opening journal?
No. You enter all the account lines without a balancing account, because the total of the journal must balance to zero on its own when you are done.
How do I reconcile the general ledger opening?
Check that your customer accounts match the customer ledger entries, your bank accounts match the bank ledger entries, your inventory accounts total up to the inventory value, and your VAT accounts match the VAT entries. You can do this directly from the opening journal before posting.
How can I test the opening before posting in my live company?
Copy the company to create a test company, post the opening there, and confirm that it reconciles correctly. Then post in the live environment once you know it is correct.
What is the difference between going live at the start of a period and in the middle of a period?
If you go live on the first day of a year or period, you only open your balance accounts. If you open in the middle of a period, you also post to your revenue and cost accounts so the general ledger reflects the activity that has already happened.