Defining balancing accounts

Balancing accounts are system accounts used to post balancing entries resulting from non-base currency. You must define a balancing account in the system accounts for your company if you made one or both of these selections for your company on the Currency form tab of Company (GL10.1):

You selected Yes in the Auto Base Balance field.
You selected one or two report currencies.

Balancing accounts must exist in the General Ledger chart of accounts.

Follow these steps to define a balancing account:

Access Chart of Accounts (GL00.1) and select the System Accounts link to open System Accounts (GL00.7). Access the Currency page of GL00.7.
In the Balancing Accounts section, select accounts for these fields:

Report Currency Adjustment

If you entered a report currency for your company on GL10.1, then select the report currency adjustment account used to post system-generated balancing entries in report currency.

Auto Adjustment

If you selected Yes in the Auto Base Balance field for your company on GL10.1, then select the account used to post system-generated balancing entries in company base currency.