How to Set Up and Manage Opening Balances in FalconPro Real Estate Software

How to Set Up and Manage Opening Balances in FalconPro Real Estate Software

Introduction

Setting up opening balances correctly is essential for accurate financial reporting in FalconPro Real Estate Software. The system provides two methods to manage opening balances:

  • Using the Open Balance Module (for direct balance entry).
  • Using Journal Vouchers (JV) (recommended for flexibility and cost center tracking).

This guide explains both methods, the advantages of using Journal Vouchers (JVs), and how to edit, adjust, or post opening balances in FalconPro.

1. Understanding Accounting Periods in FalconPro

Before adding an opening balance, users must:

  • Open the relevant accounting period.
  • Ensure the correct period is selected before entering balances.

📌 Steps to Enable Editing for an Accounting Period:

  1. Go to Accounting → General Ledger.
  2. Select the Period to Edit (e.g., Period 4).
  3. Click “Enable Editing for Opening Balance”.
  4. Now, this period is unlocked for opening balance entry.

2. Adding an Opening Balance Using the Open Balance Module

The Open Balance Module is used to enter initial balances for accounts directly.

Steps to Add an Opening Balance:

  1. Go to Administration → Opening Balance.
  2. Ensure the Correct Period is selected.
  3. Click “Add” to enter account balances.
  4. Select an account from the Chart of Accounts.
  5. Enter Debit or Credit amounts.
  6. Ensure Total Debits = Total Credits.
  7. Click “Save” to record the opening balance.

🚫 Limitations of This Method:

  • Users cannot enter the same account multiple times.
  • Cost centers cannot be assigned (e.g., buildings, properties).
  • Adjustments after posting require manual corrections.

3. Recommended Method: Using Journal Vouchers (JV) for Opening Balances

To provide more flexibility, FalconPro recommends using Journal Vouchers (JV) instead of the Open Balance Module.

Steps to Add an Opening Balance Using Journal Vouchers (JV):

  1. Go to Accounting → Journal Vouchers.
  2. Click “New JV” to create a new voucher.
  3. Set the Date as the start of the opening balance period (e.g., January 1, 2021).
  4. Enter a Remark (e.g., “Opening Balance for 2021”).
  5. Add the required accounts:
    • Bank Account → Debit: 500,000 AED
    • Customer Accounts → Debit: 300,000 AED (linked to Building A)
    • Customer Accounts → Debit: 200,000 AED (linked to Building B)
    • Owner Equity → Credit: 1,000,000 AED
  6. Ensure Total Debits = Total Credits.
  7. Click “Save” to store the Journal Voucher.

✅ Benefits of Using Journal Vouchers:

  • Flexibility to edit, add, or remove accounts before posting.
  • Ability to assign cost centers (e.g., specific buildings or contracts).
  • Multiple entries for the same account.
  • Easy adjustments before posting.

🚫 Drawback:

  • The Journal Voucher must be manually posted to finalize the balance.

4. Posting the Journal Voucher (Finalizing the Opening Balance)

Once the opening balance is verified, it must be posted to finalize the entries.

Steps to Post the Journal Voucher:

  1. Go to Accounting → GV Posting.
  2. Select the Journal Voucher created for the opening balance.
  3. Click “Post”.
  4. Now, the opening balance is officially recorded and locked.

🚫 Once posted, the opening balance cannot be edited.

5. How to Unpost and Edit a Journal Voucher (If Needed)

If an error is found after posting, users must unpost the Journal Voucher to edit it.

Steps to Unpost a Journal Voucher:

  1. Go to Accounting → GV Posting.
  2. Find the Posted Journal Voucher.
  3. Click “Unpost”.
  4. Go back to the Journal Voucher and edit the balances.
  5. Save the changes and post again.

6. Best Practices for Managing Opening Balances in FalconPro

  • Use Journal Vouchers instead of the Open Balance Module for flexibility.
  • Ensure accounting periods are correctly opened before entering balances.
  • Verify Total Debits = Total Credits before posting.
  • Always review balances before finalizing the Journal Voucher.
  • Unpost and correct errors before closing the accounting period.

Conclusion

FalconPro Real Estate Software provides two methods for setting up opening balances. Using Journal Vouchers (JV) is the recommended approach, as it allows for cost center tracking, multiple entries for the same account, and easy adjustments. By following these steps, businesses can ensure accurate financial data and a smooth transition into FalconPro.

FAQs

  1. Can I use both methods (Open Balance & Journal Vouchers)?
    No, it is recommended to use only one method to avoid duplicate balances.
  2. Why can’t I edit an account once I enter it in the Open Balance Module?
    The Open Balance Module does not allow multiple entries for the same account. Use Journal Vouchers instead.
  3. Can I edit an opening balance after posting?
    No, posted balances cannot be edited. You must unpost the Journal Voucher, edit it, and post again.
  4. How do I link customer balances to specific buildings?
    Use Journal Vouchers instead of Open Balance, as it allows assigning cost centers (e.g., specific buildings).
  5. What happens if my debits and credits do not match?
    FalconPro will not allow saving an unbalanced entry. Ensure Total Debits = Total Credits before saving.

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