Accounting Setup

Accounting setup defines how the fund's events will enter the books. Start in Accounting Setup under Accounting Operations, using the existing fund Entity and share-class records.

Decide the starting point

A newly formed fund may begin with no prior balances. Set up its chart of accounts, periods and rules before recording the first supported events. Do not invent an opening balance merely because a setup checklist names one.

An existing fund moving into OpenAdmin needs a documented cutover date and approved opening books. Its starting cash, investments, receivables, payables and investor capital must agree with the supporting schedules at that date. Decide which earlier transactions are imported and which balances establish the starting point so the same history is not counted twice.

Opening balances are a migration accounting task. The Setup tab displays and maintains setup records; it does not by itself load and reconcile a complete opening ledger. Use the authorized import or journal process agreed for the migration, and verify its actual entries. Do not assume every opening amount is an ordinary adjusting entry.

Give each event an accounting home

The chart of accounts supplies the GL accounts that hold cash, investments, liabilities, income, expenses and capital. A bank account record identifies the real account; a cash GL account records its accounting balance. They are connected concepts with different purposes.

A posting rule maps a supported source event to debit and credit accounts. For a hypothetical administration invoice, recognition could debit administration expense and credit a payable; the later payment could debit that payable and credit cash. The configured rule and policy determine the actual treatment.

Dimensions identify which entity, share class, investment, account or subscription a journal line relates to. Entity is the fund being accounted for. A Share Class dimension identifies a class within it. Apply the dimensions the event and rule require; these are not interchangeable tags.

Establish dates and investor balances

Confirm the fiscal year-end, period frequency, first period start and end, and the intended processing period for the entity. Review the actual Accounting Periods records rather than inferring a quarter from a report name.

Confirm applicable fee terms, participation arrangements and the capital accounts for the intended entity, class and subscriptions. A subscription master record does not automatically prove its accounting capital account or opening balance exists.

Check one representative event

Inspect the source, resulting accounts, dimensions, date, currency and journal status. In the saved core Cedarbridge example, expense journal #1 is Draft; its presence does not prove posting.

For a migrated fund, compare opening debits with credits and reconcile the supporting schedules to the ledger. If a cash schedule says USD50,000 but the opening GL says USD49,000, investigate source date, currency, omitted entries and duplicate history before changing either amount. Use GL and the appropriate cash tie-out for that investigation. Record the explanation on the relevant record where comments are supported.

Setup is ready when the intended records and relationships are saved, representative treatment is supported and any required opening balances agree. Continue to Posting & Adjustments for posting.