Balancing methods

When you close the financial year, you can use the Automatic Balancing (tfgld6202m000) session to clear Profit and Loss accounts and post the total balance to the Retained Earnings account. In the Finance Company Parameters (tfgld0503m000) session, you select the balancing method for the Profit and Loss accounts.

The following balancing methods are available:

• Total

  All Profit and Loss accounts are collectively cleared against the balancing account that you select in the Finance Company Parameters (tfgld0503m000) session and the total amount on the balancing account is posted to the Retained Earnings account. The profit and Loss accounts are not individually cleared.

• Individual Accounts

  The Profit and Loss accounts are individually cleared against the Retained Earnings account.

• Source of Earnings

  Each Profit and Loss account is individually cleared against the related Source of Earnings account. You can use this method to see how the total profit for the year is composed, for example, of operating profit, extraordinary profit, and so on.

• Individual Accounts with Closing Balance

  The Profit & Loss accounts are individually cleared against the balancing account that you select in the Finance Company Parameters (tfgld0503m000) session. The Balancing account is cleared against the Closing Balance account. The non Profit & Loss accounts are also individually cleared against the Closing Balance account.