Balanced journals for interunit accounting
This article shows how a journal is automatically balanced when a balancing financial dimension is selected on the Ledger page.
If account entries don't balance at the detail level of the financial dimension values, additional account entries are created automatically to balance the journal. These account entries use the Interunit - debit and Interunit - credit posting types on the Accounts for automatic transactions page to determine the main account. For example, Business Unit, which is the second segment of the ledger account, is selected as the balancing financial dimension, and the following accounting entries are about to be created.
|6100 – MSP – OU_256||100.00 DR|
|6100 – NY – OU_249||100.00 DR|
|2100 – MSP – OU_256||200.00 CR|
In this case, the following balances are determined:
- For Business Unit MSP = 100.00 CR
- For Business Unit NY = 100.00 DR
- For Business Unit MSP = 200.00 DR
Therefore, the following accounting entries are created automatically to balance the journal at the level of the financial dimension values.
|(Interunit Debit) – MSP – OU_256||100.00 DR|
|(Interunit Credit) – NY – OU_249||100.00 CR|
|(Interunit Debit) - MSP - OU_256||200.00 DR|