Automatic balancing

Automatic balancing is a feature that lets you balance General ledger journal entries in base currency automatically.

The General Ledger requires that journal entries balance in the company base currency before release. Because exchange rates are usually more than two decimals, rounding discrepancies happens when converting to base or report currency. The resulting discrepancies may not be significant in size, but they prevent journal entries from balancing. Without automatic balancing, you must manually balance the journal entry by altering the currency value or by altering the exchange rate.

If you select the automatic balancing option for your General Ledger company, then out-of-balance journal entries are balanced automatically by creating balancing journal entries in an auto-balancing account without altering the currency value or exchange rates.