Introduction
Whether using the perpetual or periodic inventory method, opening balances are typically entered based on the Trial Balance at the start of the financial year.
For example, if your financial year ends on 31 December 2025, you can use the Trial Balance as of that date to determine closing balances. These will then become your opening balances in Bukku on 1 January 2026.
Alternatively, opening balances may also be based on the Balance Sheet. However, for businesses using the periodic inventory method, additional steps are required to ensure opening stock is reflected correctly in system reports. This guide explains the setup process.
Before You Start
Before proceeding, it is important to confirm whether this guide applies to your situation.
Note:
To bring in detailed outstanding stock items, refer to the Entering Your Opening Balance guide. Enter a balance under the Inventory account code, and the system will bring you to the section of Outstanding Stock to input stock quantities for each product carried forward.
1.1 When This Guide Is Needed
This guide is specifically for cases where:
Your Bukku account is set to Periodic Inventory Method, and
You are entering opening balances using a Balance Sheet (not Trial Balance), and
You need Bukku to correctly reflect opening stock in the new financial year reports.
1.2 When You Do NOT Need This Guide
If you are entering opening balances directly from a Trial Balance (whether under perpetual or periodic inventory), simply key in all account balances as per the Trial Balance. The system will automatically reflect the balances correctly, and no additional adjustments are required.
Steps to Enter Opening Balance
2.1 Example Scenario (as at 31.12.2025)
From the Balance Sheet:
Inventory / Closing Stock: RM5,000
Retained Earnings: RM12,000
2.2 What to Key In
At the Opening Balance page, enter all account balances based on your Balance Sheet.
For the following accounts, apply this special treatment:
Debit Inventory: RM5,000
Credit Retained Earnings: RM7,000 (RM12,000 – RM5,000)
Credit Inventory – Stock Closing: RM5,000
How to access Opening Balance page: Go to Accounting > Chart of Accounts > ⋯ (3 dots) next to + New > Opening Balance.
After entering all balances:
Ensure Total Debit = Total Credit
Click Continue till the end to complete the opening balance
2.3 What Happens in the System
The closing stock as at 31/12/2025 will automatically appear in the periodic values table at Stock > Periodic Values.
No manual action is required—the system will automatically populate RM5,000 as the closing stock as at 31/12/2025.
2.4 How It Affects Your Reports
In the new financial year (FY 2026), when you view the Profit & Loss report for 01/01/2026 to 31/12/2026, the Opening Stock of RM5,000 will automatically appear.
This is because the system automatically reflects your Opening Stock and Closing Stock figures based on the values you have entered in the Periodic Values Table.
For example, as per Section 2.3 above, the system will auto-fill the Closing Stock of RM5,000 as at 31/12/2025 for you. For FY 2026, you then key in the Closing Stock as at 31/12/2026, which is RM2,500.
When you generate your Profit & Loss report for FY 2026, the system will automatically:
Pull RM5,000 as Opening Stock at the beginning of the period
Reflect RM2,500 as Closing Stock at the end of the period
Use these figures in the Cost of Goods Sold (COGS) calculation
2.5 Understanding the Split & Final Results
This process simply splits the same amount into two parts for reporting purposes—it does not represent any loss or change in value.
In the following financial year, the system will automatically adjust and bring the figures back together correctly.
In other words, once the closing stock value is included back into retained earnings, the total will tally as expected.
For example, in the Balance Sheet as at 31.12.2026, the retained earnings will still reflect the correct total of RM12,000. Even if the amount appears split, adding back Retained Earnings + Closing Stock will always return the actual retained earnings amount.
Additional Notes & Frequently Asked Questions
For more information on Periodic and Perpetual Inventory Systems, you may refer to the Inventory Valuation & Accounting guide collection.
If you need assistance on how to enter opening balances in general, please refer to the Entering Your Opening Balance guide.
If you are using the periodic inventory method and do not require inventory tracking in the system (as stock is managed via physical stock count and manual year-end calculation), you can still record outstanding stock at opening balance by creating a simple inventory item and entering the stock details.
Setup Inventory Item
Create a new inventory item named “Opening Stock” at Products & Services
Turn on Track Inventory and assign the correct Inventory Account
Leave Selling Price / Purchase Price fields blank
Enter Outstanding Stock
At the Outstanding Stock section, select the Opening Stock item created above, enter the description, quantity and cost price.
Once completed, click Continue to proceed.
Note:
If you are using the periodic inventory method and require inventory tracking in the system, you may proceed with the standard setup by referring to the Entering Your Opening Balance guide.
Simply enter a balance under the Inventory account code, and the system will automatically direct you to the Outstanding Stock section, where you can input stock quantities for each product carried forward from the previous financial year.
