Last week, in at least 2 different Linked-in group discussions, users asked questions about the Opening Balance Equity account, where it came from, why their new inventory posted credits to there, or how they 'get rid' of the amounts in the account.
The Opening Balance Equity Account is one of the most commonly misunderstood accounts created by QuickBooks. Many users have no idea how values get posted to the account, or how to 'close-out' the account at the end of their file set-up, or why amounts sometimes seem to 'show-up out of no where' in the account from time to time.
The attached slide show explains the Opening Balance Equity Account; what QuickBooks uses this account for, how to properly clear the account, and other common causes and symptoms of improper use of the account; procedures to resolve inappropriate balances within the account are also presented.
Murph
PS - those of you who teach QuickBooks should feel free to capture these slides and paste them into a Powerpoint presentation if you think they would be useful for any future classes you might instruct.