About balancing accounts

Balancing accounts (also called adjustment accounts) are system accounts used for posting system-generated balancing entries resulting from currency conversion. There are two types of balancing accounts: auto adjustment and report currency adjustment.

You can also use the error suspense account as a currency balancing account.

Auto adjustment account

Note: Auto adjustment balancing entries are assigned a Lawson source code of AB.

If the company is set to use auto base balancing, then you must define an auto adjustment account to post system-generated balancing entries. Any time that a General Ledger or interfaced non-base journal entry causes an out-of-balance condition in base currency, an adjusting entry is made automatically to the auto adjustment account.

Report currency adjustment account

Note: Report currency rounding adjustment entries are assigned a Lawson source code of CY.

If report currency is defined for a company, then you must define a report currency adjustment account. This account is used to post system-generated report currency balancing entries. Report currency adjustment accounts must be balance sheet accounts.

Uses of error suspense account

Note: The error suspense account has many other uses. See the General Ledger User Guide.

There are two situations where the error suspense system account (Source code ES) is used for currency balancing entries:

  • If your company is not defined to use auto base balancing and non-base journal entries interfaced to the General Ledger cause an out-of-balance condition in base currency, then adjustment entries are made to the error suspense account.

  • If your company uses currency ledger and non-base journal entries interfaced to the General Ledger cause an out-of-balance condition in a transaction currency, then adjusting entries in transaction currency are posted to the error suspense account.