Balancing flow

Balancing refers to tying out pertinent data from the other Distribution SX.e functions to the General Ledger Trial Balance. The General Ledger Trial Balance is the end result of all business activity; essentially, the output produced by the GL Trial Balance Report.

These Distribution SX.e system functions send data to the General Ledger Trial Balance:

   
Customer Cash Receipt Entry Customer Entry Batch Update Report
Customer Entry Roll Balances Report Customer Transaction Entry
GL Administrator Distribute Profit Report GL Entry Batch Update Report
GL Entry Distribute Automatically Report GL Entry Reverse A Journal Report
GL Transaction Entry KP Work Order Center Entry
PD Administrator Future Price/Costs Report PD Administrator Price/Costs Update Report
PD Change Price and Cost Entry Product Adjust Non-Stock/Direct Order Entry
Product Adjustment Entry Product Entry Count Update Report
Product Maintain Cost Entry Product Warehouse Inventory Audit Report
Purchase Receipt of Inventory Entry SA Administrator Journal Recovery Payroll Report
SA Administrator Journal Recovery Report Sales Entry Invoice Processing Report
Sales Order Entry Transfer Exception Receipt Entry
Transfer Receipt of Inventory Entry Transfer Shipping Entry
Vendor Cash Requirements Report Vendor Entry Batch Reconciliation Report
Vendor Entry Batch Update Report Vendor Entry Pay Invoices Due Report
Vendor Invoice Center Entry  

The trial balance creates financial statements; therefore, the trial balance must be an accurate representation of your business. The trial balance is also the basis for comparison back to the other functions to verify subsidiary data. Each journal is opened and each account is validated against the General Ledger hierarchy. The journal is closed and becomes part of the trial balance. This list shows the sequence of actions:

  1. Open journal
  2. GL hierarchy:
    1. Direct entry
    2. Module
    3. Operator
    4. R&D operator
    5. Suspense
  3. Close journal
  4. Update records

Several balancing reports, a) reflect activity within the other functions, which are referred to as the subsidiary, and b) compare function activity to totals within the General Ledger Trial Balance, referred to as control accounts. This is an independent comparison of subsidiary and control accounts reviewing different parts of the database. An example of subsidiary data may be a customer Total Balance Due. All customer accounts are searched, and all the transactions that support the Total Balance Due are added up, to arrive at a grand total subsidiary balance.

The General Ledger Control account is found by the system and the appropriate GL Balance is displayed. The Year-To-Date Balance for the Accounts Receivable Control Account is compared to the subsidiary information. The General Ledger Account Inquiry may be used to show this information.

The GL Trial Balance Report shows these two totals side-by-side for Subsidiary and GL, and calculates any difference. A difference would reflect an out of balance condition.

We recommend that you run these Balancing reports on a daily basis. If you encounter differences or notice inconsistencies, remedy the situation immediately to prevent future occurrences. This table lists the recommended reports and the General Ledger Control Accounts that are used for comparison against the subsidiary source:

Recommended Reports GL Accounts Subsidiary Source Information
Vendor Trial Balance Report Accounts Payable Transactions that support the vendor's Current Balance in Accounts Payable.
Customer Trial Balance Report Accounts Receivable
Product Trial Balance of Stock Inventory Report Inventory For Product Warehouse Products, the Cost for on hand, unavailable and received quantity balances multiplied by the GL costing method. Transactions that support the customer's Total Balance in Accounts Receivable.
Product Trial Balance of Non Stock Inventory Report Non-Stock Inventory Detailed Product header record information for active non-stock lines that have been received.
Product Trial Balance of Direct Orders Report Direct Order Inventory Detailed Product header record information for active direct order lines that have been received.
GL Balance Transfers Report Transfer Inventory in Transit and Transfer Addons in Transit Warehouse transfers that have been shipped, pre-received, or have an exception.
GL Balance Purchase Order Report Product Uninvoiced Inventory and Product Uninvoiced Addons Purchase orders in stage 5 (Received) or stage 6 (Costed) that contain uncosted lines and addons.
GL Balance Matching Activity Report Vendor Trade Unmatched Vendor invoices that have been entered and updated in Vendor batch entry using the Matching Method of reconciliation that have not been reconciled in Vendor reconciliation.
GL Balance Order Entry Report OE Down Payment and OE Uninvoiced Sales Open orders in Stage 1 (Ordered), Stage 2 (Picked) or Stage 3 (Shipped) that are cash sales or orders with down payments.
Sales Cash Drawer Balance Report Sales Down Payment and Sales Uninvoiced Sales All tendered orders.
VA Work in Process Trial Balance Report Work In Process Inventory Inventory that has been shipped to an external service vendor or internal processing department to be fabricated.
GL Trial Balance Report Entire Chart of Accounts Entire Chart of Accounts
 
Related topics