Hi,
Consolidating analysis information and carrying balances forward
When you run the year-end close process, the analytical data for alphanumeric transaction dimensions is consolidated and carried forward to the next year. The consolidation is performed only for those transaction dimensions that you’ve marked to include in the year-end process. Refer to Including Analytical Accounting in the year-end close process.
In the balance brought forward journal:
• One assignment is created for each unique combination of account, alphanumeric transaction dimensions, and codes in the case of balance sheet accounts.
• One assignment is created for each unique combination of alphanumeric transaction dimensions and codes across all profit and loss accounts.
• If amounts without any analytical information exist, then a single assignment is created for the total unassigned amount with no alphanumeric transaction dimension codes assigned to it.
• The total of all assignments for a balance sheet account represents the General Ledger distribution amount or the brought forward balance for the account.
• The total of all assignments for the profit and loss accounts is carried forward to the Retained Earnings account.
Example
Account 1011 which is a balance sheet account for customer A is assigned to an accounting class. The following alphanumeric transaction dimensions and codes are created with a valid relationship to one another.
Dimensions Codes
Project PRJ1, PRJ2
Product PDT1, PDT2
Location LOC1, LOC2
Scenario 1
Partial assignments are not allowed. Transaction dimension codes are optional and the following transactions are posted for the account 1011 during the year.
Dr. Cr. Location Code Product Code Project Code
250000 - LOC 1 PDT 1 PRJ 1
150000 - LOC 2 ---- PRJ 1
100000 - LOC 1 PDT 2 PRJ 1
- 10000 LOC 1 PDT 2 PRJ 1
On performing the year-end close, one assignment is created with the consolidated amount for each unique combination of transaction dimension codes.
Account Dr. Cr.
Journal Entry Account 1011 490000 -
Assignment 1 LOC 1 - PDT 1 - PRJ 1 250000 -
Assignment 2 LOC 2 - ------ - PRJ 1 150000 -
Assignment 3 LOC 1 - PDT 2 - PRJ 1 90000 -
Scenario 2
Partial assignments also are allowed. Transaction dimension codes are optional and the following transactions are posted for the account 1011 during the year.
Dr. Cr. Assignment% Assignment Amount Location Code Product Code Project Code
250000
- 40% 100000 LOC 1 PDT 1 PRJ 1
60% 150000 Partially unassigned, no codes entered for 60% amount
150000
- 75% 112500 LOC 2 --- PRJ 1
25% 37500 Partially unassigned, no codes entered for 25% amount
100000 100% 100000 LOC 1 PDT 1 PRJ 1
- 10000 100% 10000 Default 100% assignment, no codes entered
On performing the year-end close, one assignment is created with the consolidated amount for each unique combination of transaction dimension codes. One assignment also is created for the amount to which no codes are assigned.
Account Dr. Cr.
Journal Entry Account 1011 490000 -
Assignment 1 LOC 1 - PDT 1 - PRJ 1 200000 -
Assignment 2 LOC 2 - ----- - PRJ 1 112500 -
Assignment 3 --- - --- - --- 177500
Hope this helps
Regards,
SantoshG
