You should follow the steps in this article to enter and reverse your subcontractor opening balances before entering any other opening balances.

Post the opening balance purchase invoice

1. On the navigation bar click Subcontractors then click Batch invoice.
2. Enter the opening balances with the following details: 

   A/C	Subcontractor account reference
   Date	Date of the original invoice
   N/C	CIS nominal code
   Net	Original net amount
   T/C	Original T/C used
   VAT	Original VAT amount

3. Click Save then click Close.

Run a dummy VAT Return

So the opening balance purchase invoice doesn't appear on your next VAT Return, you should run a dummy VAT Return and VAT transfer.

1. On the navigation bar click VAT then click VAT Return.
2. Check the Date range is up to the date you're entering your opening balances.

   Tip: For example, if you're entering opening balances for 31/07/2015, enter a date range of 01/07/2015 to 31/07/2015.

3. Click Calculate VAT Return then click OK.
4. Click Reconcile VAT Return then click Yes.
5. Under VAT transfer check the Date is the date you're entering opening balances for then click Post Journal.

Reverse the opening balances

Once your subcontractors opening balances are entered you should reverse the balances against the creditors control account, VAT liability and CIS nominal codes. This is to avoid any double accounting when you enter your trial balance opening balances.

1. On the navigation bar click Nominal codes then click Journal entry.
2. Check the Date is the date you're entering opening balances for.
3. Enter the following details: 
   

   N/C	Name	T/C	Debit	Credit
   2100	Creditors Control Account	T9	Gross amount
   2202	Purchase Tax Control Account	T9		VAT amount
   CIS nominal code	CIS nominal code	T9		Net amount

4. Click Save.

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