Defining Zones and Interzone Relationships

You can divide your general ledger company into zones. Use zones if you have intracompany transactions and you have multiple balance sheets you want to keep balanced. If you use zones, you must define each zone and define a relationship between the default zone and the other zones. This procedure describes the process for defining zones and a relationship between the zones.

Before you define interzone relationships, you must define a chart of accounts and a general ledger company.

To define an interzone relationship

  1. Access Interzone Relationships (GL30.1) and click the New Zone button.
  2. Use Define Zone (GL30.2) to define zones. Use the following guidelines to enter field values:
    Zone

    Define each zone within a company, including your base zone. You must define a zone for each accounting unit at the top level of your company.

    The zone number is the same as the variable level address for the level one accounting unit. In the LGE example, where the accounting unit for Clinics is 03-00-00, the zone number is 03. All accounting units that roll up to the Clinics accounting unit are included in zone three.

    Balance Sheet and Income Statement

    Select a default accounting unit in each of these fields to be used for the zone system accounts. The accounting unit you select must be a posting accounting unit in the zone. These accounting units are used in conjunction with System Accounts (GL00.7) to create system-generated entries.

    Note: If you change the balance sheet or income statement system accounting units after they are defined, you must run GLAMOUNTS (for UNIX/Windows) DBGLGAM (for IBMi) Rebuild (GL325), Report Currency Rebuild (GL327), Undistributed RE Rebuild (GL330), and Consolidation File Rebuild (GL320) to update the URE (undistributed retained earnings) and GLCONSOL (for UNIX/Windows) DBGLGCN (for IBMi) balances. If you choose a new system accounting unit from outside of your current zone, additional manual entries are needed to balance the zones.
  3. Use Interzone Relationships (GL30.1) to define interzone relationships. Use the following guidelines to enter field values:
    From Zone and To Zone

    Type a name for the from zone. The from zone is the originating zone in the zone relationship. You must define interzone relationships from each zone that will be used as the base zone on transactions to the zones used in the detail lines of the journal entry.

    If you will always use the same base zone, then the only relationship you must define is from the base zone defined on Company (GL10.1) to all other zones defined for the company. If you plan to override the base zone on journal entries, you must also define relationships between the override zone and the other zones that will be used in the detail lines of the journal entry.

    The interzone relationships you define are one-way relationships. For example, defining a relationship from zone one to zone two does not automatically establish a relationship from zone two to zone one. If both zones in the relationship originate interzone transactions, you must define two relationships, one in each direction.

    System Code (Sys), Zone Receivables, and Zone Payables

    You can define multiple from zone and to zone payable and receivable accounts by system code.

    A relationship with a blank system code must exist before defining relationships with specific system codes. If the System Code field is left blank, any system code not specified will use the blank (default) relationship.

    To define different interzone accounts for each subsystem, define additional relationships and select a specific system code.

    Note: If you are converting transactions from a previous system, do not set the Zone Balancing flag to Yes until you have completed the conversion.
  4. Set the Zone Balancing flag on Company (GL10.1) to Yes.
  5. Define a default base zone using Company (GL10.1).

Related Reports and Inquiries

To Run
List all interzone relationships Interzone Relationships Listing (GL230)
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