Accounting unit zones

An accounting unit zone is a group of accounting entity accounting units that stay in balance when transactions are created in more than one zone.

Use these steps to enable an accounting unit zone:

Select Accounting Unit as a component of the finance structure of the finance enterprise group.
Select Accounting Unit Zone Balancing on the accounting entity setup form for the accounting entities on which you want to implement zone balancing.

You can define a zone at any level of your accounting unit structure. The zone includes the accounting unit for which you define the zone, and all of its child summary and posting accounting units. You can define a zone for a summary accounting unit or for a posting accounting unit. For each zone that you define, you must specify the posting accounting unit where the automated zone balancing journal entries will be posted. If the zone is for a summary accounting unit, then you must specify a lower-level posting accounting unit. If the zone is for a posting accounting unit, then you must specify the same posting accounting unit to post the balancing entries.

If you use accounting unit zone balancing, then you must designate one zone as the default zone for the accounting entity. The default zone is used to keep all transactions in balance when transactions cross zones. The default zone is used on transactions, but it can be overridden.

Note: If you change the default zone, then balancing journal entries are posted in the new zone from that point forward. Previous balancing journal entries remain in the previous zone.

If you use accounting unit zone balancing for an accounting entity, then you must also define an accounting entity zone accounting unit. This cannot be defined as a zone and must be a stand-alone accounting unit without parent or child dimensions. This accounting unit can also be your system accounting unit. This accounting unit is used to post balancing entries for transactions between zoned and not-zoned accounting units.