Closings With Book Codes and Balance Sheet Indicators

Book codes are both an account attribute and balancing ChartField. You can use book codes to group Account ChartField values for the recording of transactions under different accounting rules in the same business unit and ledger. For example, you can use book codes to record corporate versus local transactions when different accounting rules apply. In this case, you might create the book codes C, L, and B to classify accounts as corporate (C), local (L), or both (B).

For accounts with book code values that can be overridden, you must select a book code to avoid receiving a warning message. A book code is fixed for an account that cannot be overridden, and the system enters it automatically. If you retain a book code for the offset, you must also retain it for the retained earnings ChartFields, and it must be a book code that can be overridden. For the default retained earnings account, you can select only a book code that can be overridden.

In addition, the PeopleSoft system comes with standard balancing attributes for Account ChartField values to segregate and maintain separate transactions within a business unit and ledger for BS (balance sheet) and OB (off balance sheet) transactions.

Use book code and balance sheet indicators to create subsets or groups of accounts within a ledger that correspond to different accounting rules. When the closing edit is run, the system verifies the values of the book code and balance sheet indicator for the retained earnings account.

When a retained earnings book code is fixed, either the account cannot be overridden or a fixed book code is entered. Only the entries from the source with the same book code are closed. Similarly, only the entries with the same balance sheet indicator value as the retained earnings account are closed.

Consider the following example. To close subsets separately, you must create ChartField value sets that specify the accounts that the system closes together. You use a book code, a balance sheet indicator, or both:

ChartField Value Set	Account	Book Code	Balance Sheet Indicator
CFV1	Account Rollup INCSTMNT	B	BS
CFV2	Account Rollup INCSTMNT	B	OB
CFV3	Account Rollup INCSTMNT	C	BS
CFV4	Account Rollup INCSTMNT	C	OB
CFV5	Account Rollup INCSTMNT	L	BS
CFV6	Account Rollup INCSTMNT	L	OB

Note:

Check balances by running a query on period 0 for the book codes used for year end close. Year end close carries forward all ending balances to beginning balances for balance sheet accounts, including balances for both closed and open book codes.