Business Unit Setup - Balancing details

These balancing details are only relevant if you are using Automatic for the Amount Balancing option, as described above. If an imbalance is caused by a currency conversion rounding difference, then a balancing adjustment transaction can be posted to a Credit Balancing Account or a Debit Balancing Account, depending on the amount and sign of the imbalance.

For an imbalance to be considered as due to a currency conversion rounding difference, the journal must balance in at least one of the currency values.

When currency conversion rounding causes an imbalance in the base currency, a balancing amount is automatically posted to the relevant account (debit or credit) you enter here in the Value 1 tab. You can also set a Rounding Threshold so that only imbalances less than or equal to the threshold are automatically balanced in these accounts.

An imbalance that exceeds the threshold amount is considered to be an error, and an adjustment is not posted in these balancing accounts. Similarly, if the imbalance is not due to currency conversion rounding, (that is, none of the currency values are balanced), then it is also considered to be error and these balancing accounts are not used. In such cases, the resulting action depends on the entry process being used, for example, if you are using Ledger Import with the Post option, then the error is resolved by posting a balancing transaction to the error suspense account you enter in Ledger Import Run-Time Parameters.

The following three options are only required if Automatic is selected for the Amount Balancing option:

Complete this information:

Rounding Threshold

This amount is used as a tolerance check if the Automatic balancing option is being used. If the amount of the imbalance is greater than this amount, it cannot be posted automatically. This prevents very large postings being made under the guise of rounding errors. For example, if an incorrect exchange rate has been used to calculate a base currency value.

Credit Balancing Account

The ledger account to which any base currency balancing transactions with a credit value is posted. If you leave this blank, all balancing transactions are posted to the Debit/Net Balancing account.

Debit/Net Balancing Account

The ledger account to which any base currency balancing transactions with a debit value is posted.
Uwaga: Normally these entries are made before the chart of accounts is created. You must ensure these accounts are created and are not Memo accounts. Otherwise, error messages are displayed during posting.
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