Solution Properties
Solution ID:
200427112208491
Last Modified Date:
Tue Mar 18 11:45:05 UTC 2025
Taxonomy Path:
Case category//How do I...//banking/reconciliation
Author:
[email protected]
How do I correct a bank opening balance?
Description

There are two main reasons that you might need to correct a bank opening balance:

  • Incorrect Entry - If the bank opening balance is incorrect, reverse it before posting the correct balance
  • Unreconciled Items - Correct the incorrect opening balance that includes uncleared items. This ensures the uncleared transactions appear in the Bank Reconciliation window

TIP: For Sage training on general processing to larger tasks like year end, our Sage Accounts learning help centre.

Cause
Resolution

Reverse an incorrect opening balance

You can reverse a reconciled opening balance by entering the opposite transaction to the original opening balance, using the same reference and date.

  1. Go to Bank accounts, select the required account and select New/edit or Edit.
  2. Click the Current Balance option and enter the Ref and Date of the original opening balance. Then:
    • If the original entry was a receipt (debit), enter the value into the Payment box
    • If the original entry was a payment (credit), enter the value into the Receipt box
  3. Select Save, Save again, then Close.

You can now enter the correct opening balance.

EXAMPLE: 

You enter an opening balance of £/€1000.00 as a receipt, using a date of 31/01/25.

Bank Date Ref Details Payment Receipt
1200 31/01/25 O/Bal Opening Balance   1000.00

The correct opening balance is 01/02/25 with a value of £/€900.00.

The first transaction reverses the value of the original opening balance, using the same date, reference and details:

Bank Date Ref Details Payment Receipt
1200 31/01/25 O/Bal Opening Balance 1000.00  

The second transaction posts the correct opening balance value on the required date:

Bank Date ref Details Payment Receipt
1200 01/02/25 O/Bal Opening Balance   900.00

Correct unreconciled items to remove from the opening balance

Reverse the value of the uncleared items included in the opening balance.
  1. Go to Bank accounts, select required account, then select Edit.
  2. In the Balance section, select the Current Balance option.
  3. Enter the Ref and Date of the original opening balance.
  4. Enter the value of any uncleared payments in the Receipt field, then click Save.
  5. Click the Current Balance option again and enter the Ref and Date of the original opening balance.
  6. Enter the value of any uncleared receipts in the Payment field.

     TIP: Enter the payments and receipts separately as in the steps above. If you enter them at the same time, clicking Save only saves the value in the Payment field.

  7. Click Save then Close.

Post the uncleared transactions

Enter the uncleared items as bank payments or receipts.

Bank receipts

  1. Go to Bank accounts, select the required account, then select Bank receipt.
  2. Enter the required Date and Ref.
  3. Enter the Suspense Account nominal code, 9998 by default in the N/C column.
  4. Enter any Details, the value in the Net column and select T9 in the T/C column if using Standard VAT.

    For VAT Cash Accounting use the correct net and VAT split with the correct tax code.

  5. Repeat steps 2 and 3 for each individual receipt, then click Save, then Close.

Bank payments

  1. Go to Bank accounts, select the required account, then select Bank payment.
  2. Enter the required Date and Ref.
  3. Enter the Suspense Account nominal code, 9998 by default in the N/C column.
  4. Enter any Details, the value in the Net column and select T9 in the T/C column if using Standard VAT.

    For VAT Cash Accounting use the correct net and VAT split with the correct tax code.

  5. Repeat steps 2 and 3 for each individual receipt, then click Save, then Close.

 

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