Standard Algorithm

In Infor LN, the Standard Algorithm works as per the specified conditions:

• Starting with the first line of the document, the algorithm determines separate sets of lines for which the total amount balances to zero in the local currency.
• For a given line within a set, the opposite line has the same amount and sign. It can also have the opposite debit/credit indicator or the same absolute amount and debit/credit indicator and the opposite sign.
• Two opposing lines have each other’s ledger account as contra account.
• For all the lines within the set and having no opposite lines, the algorithm checks if the ledger account of the line is a control account.
  • if the condition is satisfied, the algorithm searches for the line with highest opposite amount and uses the ledger account of that line as contra account to the control account.
  • if the condition is not satisfied, the algorithm searches for the line with the control account and uses this control account as contra account.
• If no line with the control account is found, the algorithm searches for the line with highest opposite amount and uses this account as contra account.

There are exceptions within the Standard Algorithm:

• If the line is a tax line, the line gets the same contra account similar to the line carrying the tax code.
• If the line is an inter-period line, the inter-period account used in the other period is its contra account.
• In the generated intercompany journal:
  • The intercompany account is the contra account of the other lines.
  • For the intercompany line, the ledger account of the opposite line with the highest amount is the contra account.
• If the line is an intersegment line, the line itself becomes the contra account.
• Approval Document:
  • The control account is its own contra account (in case of segment reporting)
  • The Invoice Receipts account has the non-Invoice Receipts account with the highest amount as contra account
  • The non-Invoice Receipts account has the Invoice Receipts account as contra account

• Fixed Asset Disposal

  Ledger Account	Contra Account
  Investment Account	Gain/Loss Account or Accumulated Depreciation
  Accumulated Depreciation	Gain/Loss Account or Investment Account
  Proceeds (Interim Disposal Account)	Investment Account
  Gain/Loss Account	Investment Account

   

• Closing of Profit & Loss ledger accounts
  • Auto balancing method: Individual Accounts and Total
    • For all lines in the document, the contra account is the ‘Retained Earnings Account’.
  • Auto balancing method: Source of Earnings
    • The contra account of all the P&L lines belonging to a certain Source of Earnings is the ledger account of this Source of Earnings.
    • The ledger account of the Source of Earnings is its own contra account.
  • Auto balancing method: Individual Accounts with Closing Balance
    • The contra account of all the P&L lines is the Income account.
• Closing of Balance Sheet ledger accounts
  • Only for auto balancing method Individual with Closing Balance: The contra account of all the Balance Sheet lines is the Closing Balance account.
• Opening Balance
  • Auto balancing method: Individual Accounts and Total
    • For all lines in the document, the contra account is the ‘Retained Earnings Account’.
  • Auto balancing method: Source of Earnings
    • For all lines in the document the contra account is the Source of Earnings account with the highest amount.
  • Auto balancing method: Individual Accounts with Closing Balance
    • For all the lines in the document (except the one mentioned below), the contra account is the ‘Opening Balance Sheet Account’.
    • The contra account for the line with the ‘Opening Balance Sheet Account’ is the ‘Retained Earnings Account’.