What is Ledger Conversion Balancing?

Ledger Conversion ensures that any transactions it generates for the target business unit balance, in each of the currency values. It ensures that the total of the transaction debit and credit amounts, for a currency value, net to zero and if not generates a balancing journal posting to post the amount of the imbalance.

These balancing checks are only carried out on the ledger transactions that are generated for the target business unit. The budget and archive transactions are not checked. The ledger transactions produced from a 'swap' are also not checked.

Balancing Options

You can choose the level at which the generated transactions must balance. Three options are available:

  • Period - the transactions for each accounting period must balance.
  • Year - the transactions for each accounting year must balance.
  • Total - all of the transactions must balance.

If you choose to balance by period or year, the transactions are grouped accordingly and the total debit and credits are checked at this level.

Balancing Adjustments

If the generated transactions do not balance in a particular currency, but do in another currency, this is almost certainly caused by a currency conversion rounding difference.

The system generates a balancing journal that posts the imbalance to the Balancing account for the currency value defined for the target business unit.

Note: A balancing account is defined for each value type in Business Unit Setup.

You choose the journal type to apply to the balancing journal and it is given a journal source of SYSTM. The processing date is used as the entry date and transaction date. Any preset analysis codes assigned to the journal are also applied, but no other presets.

Note:  If you want to apply transaction sequence numbers to the target business unit transactions the appropriate sequence number code must be assigned to the journal type you choose. See Introducing Ledger Sequence Numbering.
Note: If the Trial Balance for a new financial year does not balance in a newly generated currency, see Reconciling a Trial Balance Ledger Total in a Generated Base Currency.