Standard PL-BS journal behavior

Financial Consolidation stores profit and loss data (PL) as periodic amounts and stores balance sheet data (BS) as point-in-time, or cumulative, amounts.

Profit and loss lines (PE, PR, or PS account types in the application) are added up across periods to create year-to-date data. They are also rolled up to create quarterly and yearly data. Balance sheet lines (BA, BL, BS, or BE account types in the application) are not added up across periods because values for each period are cumulative; therefore, periodic and year-to-date data are identical.

The Standard PL-BS journal is used when the adjustment value is not part of the subsequent period's general ledger load. The balance sheet portion of the journal is reapplied in future periods to reflect the accumulation of the profit and loss portion of the journal in retained earnings. This behavior keeps all balance sheet lines balanced after a consolidation.