Rollover of entity journals

The Rollover Entity Journals function enables you to transfer all values and journals from selected adjustment levels on an entity basis. Adjustment levels can only be changed with the help of journals.

In the transfer, the level switches from the adjustment level to its equivalent rollover adjustment level. In the first year that the rollover for the journals at the entity level is run, all data is transferred from Adjustment to Rollover Adjustment. In the following years, all data from Adjustment is still copied to Rollover Adjustment. Additionally, the existing rollover adjustment data is copied to Rollover Adjustment of the following year.

This table shows an example of how the results of Adjustment and Rollover Adjustment are added together and shown as a sum in Rollover Adjustment:


Year Booking level entity	2019 Adjustment	2020 Rollover Adjustment	2020 Adjustment	2021 Rollover Adjustment
Assets	-200	-200	1,000	800
Liabilities and equity	-200	-200	1,000	800

In 2019, the adjustment for assets is -200. In 2020, this value is transferred to Rollover Adjustment. Therefore, rollover adjustment is also -200. Then, in 2020 there is a further adjustment of 1000. With the rollover of journals, the 1000 adjustment is transferred to Rollover Adjustment in 2021 together with the existing rollover adjustment of -200.

On the Entity Parameter page, you can define different local currencies for different periods. If so, the currency exchange rate is used to convert all values during the data transfer from the source period to the target periods. If, for example, CZK is used for October 2023 and EUR for November 2023, and 1 EUR = 25 CZK, then this currency exchange rate is used: 1/25 = 0.04. 200 CZK from October 2023 are transferred to November 2023 according to this calculation: 200 CZK * 0.04 = 8 EUR

Note: Currency exchange rates must be defined on the Entity Currency Changes page. Otherwise, the process fails.

If the currencies of the source and target periods are the same, then the data is copied from the source period to the target periods without any currency conversion.

Caution:

If an account is intended for use with intercompany details and you disable the Intercompany property in Business Modeling, you can encounter data inconsistencies. This is because intercompany-related data is not automatically removed across all areas. See scenarios 1 and 2.

Scenario 1

The Intercompany property is disabled. Journals are posted without the Intercompany value, for example, RU0002. Then, the Intercompany property is enabled and the Rollover Journal process is started. Consequently, the rollover is performed and the journal data is posted to Intercompany: External.

This table shows messages that are displayed when, for example, the Intercompany property for account A and B is enabled and this is followed by the Rollover Journal process:


Journals for rollover from the previous period	Message displayed after the rollover
Account A with the Intercompany value	Expected behavior. No message is displayed.
Account B without the Intercompany value	Journals have been posted to account <Account B ID>, updating the Intercompany property from 'None' to 'External' for the following contexts: {<Entity ID - Caption, Period>, <Entity ID - Caption, Period>, ...}

Scenario 2

The Intercompany property of a group account is enabled. The account has the Intercompany value (RU0002) and is used in posting journals. Then, the Intercompany property is disabled and the Rollover Journal process is started. Consequently, the rollover is performed and the journal data is transferred from Intercompany: RU0002 to Intercompany: External. This change can cause data inconsistencies, particularly when the account is involved in consolidation processes.