Opening balances: how to enter goods into the database without fictitious debts to suppliers

If, after starting work in Torgsoft, the balance with partners shows a debt to a supplier that does not actually exist, the most common reason is that the initial goods were entered as a regular goods receipt. When creating a regular goods receipt invoice, the supplier must be specified, so the program treats such a document as a new purchase of goods and creates a debt to the selected supplier. For goods that were already in the store before the program was launched, you need to use the special «Initial Balances» mode. In this case, the goods are added to warehouse accounting but do not create accounts payable to the supplier.

This instruction is intended for business owners and administrators who are just starting accounting automation in Torgsoft or transferring a goods database from another program. The situation with non-existent debts occurs when initial goods are received as a regular purchase. After completing the steps below, you will be able to correctly add goods to the warehouse manually or through import so that they do not create false accounts payable.

How to understand that initial balances were entered incorrectly

• In the «Payment» — «Balance with Partners» section, a large debt to suppliers appears for goods that were actually paid for long ago and were in the store before the program was installed.

• Analytics are distorted: the «Analysis of Sales of Supplier Goods on Consignment» report or other financial reports show outdated debts and receipts.

Why a fictitious debt to the supplier appears

The initial stock balance, that is, the goods that were already in the store before automation began, was entered through a regular goods receipt invoice with a specific counterparty specified. If the special «Initial Balances» mark is not activated during manual entry or import from Excel, the program assumes that you have just purchased this batch from the supplier and owe money to them.

Where to check incorrect debts and initial receipts

1. Go to the menu item «Payment» — «Balance with Partners». Select the «Supplier» filter and check the amount in the «My Debt» column. If there are debts that do not exist in reality, the initial balances were entered incorrectly or payment was not made for a real supplier invoice.

2. Open Warehouse → Goods Receipt Invoice Register. Use the filters by supplier and payment status to check all unpaid invoices. If the invoice really must be paid to the supplier, enter the payment. If these are initial goods that were already in the store before starting work in Torgsoft, such an invoice must be reissued as «Initial Balances» so that it does not create a fictitious debt to the supplier.

How to correctly enter initial balances without creating debt

To perform a so-called «zero» inventory and receive existing goods as initial balances without creating debts, you need to create the correct receipt document.

Option 1. Entering balances manually through a scanner

1. Go to the menu item «Document» — «Goods Receipt».

2. Click the «Add» button or «New Receipt» to create the invoice header.

3. In the receipt parameters window, BE SURE to check «Initial Balances».  Note: when this mark is activated, the «Supplier» field is automatically locked, because the supplier is not specified system-wide for initial balances, which prevents debts from appearing.

4. Select the purchase currency of the goods and click «Save».

5. Now you can scan the barcodes of existing goods, fill in their cards if the goods are not yet in the directory, and specify the actual quantity.

Option 2. Import initial balances from Excel

If you are transferring 1,000-2,000 items from another program, for example, in *.xls format, it is better to use import.

1. Create a new goods receipt invoice in the same way as described above: Document — Goods Receipt — Add, check «Initial Balances», and click «Save».

2. While in this invoice, click the «Import» button.

3. Create a connection to your Excel file through «Data Source».

4. Map the file columns (Barcode, Name, SKU, Price, Quantity) to the fields in Torgsoft.

5. Start the import. The goods will be added to the warehouse balance without creating accounts payable.

What to do if initial balances were already entered as a regular receipt

If you have already entered the initial goods as a regular receipt and there have been no sales for them yet, the best option is to delete this goods receipt invoice through Warehouse - List of Receipts and enter it again with the «Initial Balances» mark. If you initially received the goods as «Initial Balances», but later needed to distribute them by real suppliers for analytics, go to «Merchandising» — «Error Diagnostics» — the «Initial Balance Goods» tab. Select the required goods and click «Distribute Goods to Supplier». The program will move them to the correct invoices by itself.

How to prevent fictitious debts at the start of work

• Use the correct tool. Clearly distinguish between entering goods that are already in the store, which is done exclusively through the «Initial Balances» mark, and goods that have just arrived from the supplier, which is a regular receipt with a counterparty specified and creates a debt.

• Staff briefing. Explain to those responsible for receiving goods that the «Supplier» field in the receipt directly affects the financial balance of the business.

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