Dealing with the Implications of Multiple GAAPs in One Ledger for Various Processes
While the many processes that create journal entries need not be concerned about populating adjustment type for the journal line if they correctly populate the header, there are other considerations that must be addressed.
This section discusses how to:
Define the necessary balancing provisions for various processes.
Create steps and rules for various processes to maintain separate GAAP balances.
The Journal Edit process groups journal entry lines by book code to create separate Edit Suspense, Amount Suspense, Balance Suspense, Currency Rounding Adjustment, InterUnit, and Position Accounting journal entry lines by book code. Adjustment type is also as a Balancing ChartField. Journal lines that are created by Journal Edit for these processes inherit the adjustment type ChartField values from the source lines.
You must add balancing and suspense accounts for these processes for each of the self-balancing subsets of accounts within the ledgers that the book codes and adjustment types define.
For some processes you must create separate steps for each book code and adjustment type combination or otherwise setup the processes to prevent combining of different GAAP balances. These processes include:
Revaluation.
Translation and Translate Within Ledger.
Interim and Year End Closing.
Consolidation.
ADB requires that you create separate Average Daily Balance Rules as follows:
For local regulatory reporting, select book code values of L (Local), B (Both), and blank adjustment type values.
For corporate (headquarters) reporting, select book code values of C (Corporate), B (Both), and Adjustment types values of blank combined with any adjustment and reversing entries having applicable adjustment codes.
Archiving does not archive ledgers or journals of open periods. Because accounting periods can be open for one ledger code and closed for another when dealing with multiple GAAPs, this requires careful consideration of archiving actions.