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Reply from VidhyaDhar on Dec 28 at 10:07 PM Hi Friends
Let me give you my two cents on the subject.
Let us assume the following scenario:
A. The finance department posts an entry
Rent Account ( For Segment A ) Debit 100 USD
to Cash Account ( Segment A ) Credit 100 USD
( The user enters the segment in Rent Account and an active split via
inheritance indicator copies the segment to the cash account as well).
B. Later the finance department finds that the rent should have been
actually posted to segment B instead of A and wants to rectify the error.
If you are not using New G L ( segment accounting, in this case )
it is sufficient to pass the transfer entry
*Rent Account ( Segment B ) debit 100 USD*
*Rent Account (Segment A ) credit 100 USD*
But if you are using New G L , this cannot be done.
Since the rectification debit entry is in Segment B and has not credit in
Segment B, debit - credit for segment B is not equal to zero. Therefore, a
document split and a segment balancing posting cannot happen. Likewise, the
rectification credit in Segment A does not have an equivalent debit in
Segment A. Therefore, this entry does not comply with the rule "debit -
credit must be equal to zero for posting within the segment". For a
successful split to happen, debit - credit must be zero even at segment
level ( not only at document level ).
You overcome this difficulty by using zero balance clearing lines and the
rectification happens as follows:
*Rent Account Segment B Debit 100 USD*
Zero Bal Cl.Line Account Segment B Credit 100 USD Debit - credit for
segment B = 0
Zero Bal Cl Line Account Segment A Debit 100 USD Debit - credit for
segment A = 0
*Rent Account Segment A Credit 100 USD*
**
**
You can observe the earlier rectification actually happens now with two
more clearing line items which help in achieving zero balance
This is one half of the entry. A similar thing happens with regard to
transfer of segment relating to cash account and this also happens with the
formation of zero balance clearing lines.
Hope this clarifies.
Regards
VidhyaDhar
| | | ---------------Original Message---------------
From: rsr rsr
Sent: Wednesday, December 28, 2011 12:50 PM
Subject: Zero-Balance Clearing
Ya, I saw it. OK, you are correct. |
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