Dual Accounting

In Financials, you can use dual accounting. You can define two separate structures of ledger accounts and dimensions. One of these structures is used for fiscal reporting to the government. The other one can be used for commercial reporting to your company's management.

When you define a ledger account, you can indicate to which structure it belongs in the Dual Accounting Indicator field of the Chart of Accounts (tfgld0508m000) session:

Statutory accounts are used for the legal reporting structure, for example, to the tax authorities.
Complementary accounts can be used for the management reporting structure.

You can link a statutory account and a complementary account to a parent account. If you print the management report based on the parent accounts, on the report LN adds the amounts in the complementary account to the amount in the statutory accounts.

Example

Fixed asset:		123
Purchase value:		USD 400,000
Market value:		USD 500,000 (to be reported to the management)
Statutory account:	001231	USD 400,000 (as legally required)
Complementary account:	001232	USD 100,000 (the difference)
Parent account:	001200	USD 500,000 (the total amount)

The amount reported to the tax authorities will be: USD 400

The amount reported to the Management will be: USD (400 + 100) = USD 500