# How To Enter GL Opening Balance

The **opening balance** is the first entry in a firm's accounts, either when they are first starting up or at the start of a new financial year.

The **opening balance** can be found on the credit or debit side of the ledger, depending on whether or not the firm has a positive or negative balance.

### How to Configure:

**Step 1:** Navigate to **Accounting** then select **Chart of Accounts** from the menu which looks like the one shown below;

**Step 2:** Click on **+Add account**

**Step 3:** Create GL accounts for **Assets, Liabilities, Income, Expenses,** Here I am adding it for "**Assets**"

**Step 4:** Similarly create GL accounts for **Liabilities**, **Income**, **Expenses**

**Step 5:** Create a GL account "**Opening Balances Contra Account"** with account type "**Equity**"

You can see this GL account in chart of accounts like in the image shown below:

**Step 6:** Next go to **Accounting** then click on **Accounts Linked to Financial Activities** from the menu

**Step 7:** Click on **+Define New Mapping** to define financial activity

**Step 8:** In **Financial Activity Mapping** set "Financial Activity" drop down as **"Opening Balance Transfer Contra"** and set "Account" drop down as **"Opening Balances Contra Account (OB21)"**

**Step 9:** Next navigate to **Accounting** then click on **Migrate Opening Balances**

**Step 10:** Select the appropriate **Branch**  and **Currency** from the drop down and click on ![](https://mifosforge.jira.com/wiki/download/thumbnails/162037763/12.png?version=1\&modificationDate=1476946488559\&cacheVersion=1\&api=v2\&width=75)

**Step 11:** Next define the **Opening balances**, a sample entry is shown in the screenshot below:

{% hint style="danger" %}
Sum of all the credits must be equal to sum of all debits.
{% endhint %}

**Step 12:** On clicking  submit **Opening Balances** are set.
