Debit vs. credits

When a remainder is required, it is debited or credited such that the sum of the Match line amounts, Match With line amounts, third-party line amounts (if any), and the remainder is zero (taking into account the natural sign of each line).

Each journal type uses a different formula to calculate the remainder.

For Intercompany Eliminations Journal:

Remainder + (Sum of the translated Match line amounts for the transaction set * consolidation percent of spcifying unit) + (Sum of the translated Match With line amounts for the transaction set * consolidation percent of specifying unit) + (Sum of calculated third-party amounts) = 0

The sign of the remainder is the natural sign of the intercompany line associated with the greater of the amount associated with the Match line or the amount associated with the Match With line.

For example, if the natural sign of the Match line is a debit, a credit adjustment is required to eliminate the Match line amount. If the natural sign of the Match With line is a credit, a debit adjustment is required to eliminate the Match With line amount. If 75 is credited to eliminate the Match line amount and 70 is debited to eliminate the Match With line amount, then 5 debits (the remainder) are required to equalize the debits and credits. The remainder is therefore a debit (the natural sign of the Match line).

If a different remainder line is used for debits than for credits, the net remainder for all the transactions for any given elimination unit in the "Outside of Requested Tolerance" categories is posted to only one of the remainder lines during a consolidation, the line designated for the net sign. For example, a 300 net credit is posted to the line designated for credits.