Usually, it is located in the drawer 8 (extraordinary account drawer for DE localization or Taxation and Extraordinary Items for AU localization) of chart of account. It is one of P&L drawers for all localizations and versions.
If you go through the link by Jitin's post, you doubt should be cleared.
All open balances are mainly for balance sheet needs. Wherever you have balance sheet item with non zero opening, you need to upload the opening balance to a transit account. Depending on your business requirements, CoA could be all different.
The account set up should be accounting department's responsibilities. Consulting your accounting department to get their current version of CoA.
The opening balance account is an offset account for G/L account opening balance, A/R opening balance, A/P opening balance and inventory opening balance.
All the opening balances are posted to asset, equity or liabilities and it is been offset with the opening balance account that is located in he drawer expenditure or could be probably in the equity.
Finally, the opening balance account balance should be zero after opening balance process finished.
The accounting equation for balance sheet should be correct after opening balance is finished:
Asset = liabilities + equity
If you place opening balance account in the equity but the equation is not correct afterwards, then it is wrong, so you must place it in the expenditure drawer.
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