Writing Off Matching Imbalances

The Write On/Write Off feature provides an alternative method of dealing with imbalances in the matching functions of Account Allocations, On-line Allocation and Transaction Matching. This feature is enabled or disabled in Business Unit Setup.

If this feature is enabled any matching imbalance is treated as an amount to be written on or off, rather than considered as possible discount. Any difference in the amounts in the matching currency is treated as a write-on/write-off, regardless of which currency has been chosen as the matching currency.

Providing the amount of the imbalance is within the tolerance set in the Business Unit Setup, the difference is automatically posted to either the Write On Account or Write Off/Net Account, depending on the sign of the difference. These write off accounts are also identified in the Business Unit Setup and if you do not specify a Write On account, any difference is always posted to the Write Off/Net account.

The Write On/Write Off Tolerance value is defined for the business unit in the base currency. If the matching currency is not the base currency, the amount of the imbalance is first converted into the base currency and then compared against the tolerance.

Once this write-on/write-off posting has been made for the imbalance in the matching currency, the allocation may still be out of balance in the other currencies. This is caused by fluctuations in the exchange rates and these differences are treated as exchange differences in the normal way.

Matching on the Fourth Currency

If the allocations are being matched on the fourth currency values and these values do not balance, the difference is converted into the other currency values using the exchange rates that exist on the cash transaction. If more than one cash posting has been allocated, an average exchange rate is calculated from the rates on all of the cash postings. If a cash posting has not been allocated as part of the allocation set, an error message appears.

The cash transaction is identified by the posting journal type set on each transaction from the journal type.

Note: Authorization may be required to post a write on/off amount that is greater than the tolerance, or if the exchange rate on the cash posting is out of tolerance.