1. Using General Ledger
  2. Examples of Balancing Validations in Journal Workbook Upload

Examples of Balancing Validations in Journal Workbook Upload

The Create Journals workbook has validations on the Single Journal and Multiple Journals worksheets.

The validations ensure that unbalanced actual journals aren’t uploaded when suspense accounting isn't enabled for the ledger and the accounted amounts aren't within the balancing threshold, or when the Require manually entered journals balance by currency ledger option is enabled. Validation is affected by the way journals are grouped and classified

Journal lines are grouped into one journal if the following data is the same:

  • Journal Batch Name and Description

  • Source

  • Journal Name and Description

  • Ledger

  • Category

  • Clearing Company

  • Legal Entity

The legal entity is used as a grouping criterion only when sequencing is enabled at the legal entity level for your ledger.

Journals are classified as single currency journals if all the journal lines have the same data for these fields:

  • Currency

  • Conversion Rate Type

  • Conversion Rate

  • Conversion Date

Any journal that doesn't qualify as a single currency journal is classified as a multicurrency journal. Different criteria is used to validate the balancing of single and multicurrency journals.

A single currency journal is unbalanced if:

  • Entered amounts aren't equal or

  • The difference in the accounted amounts is greater than the larger of the percentage difference, using the Balancing Threshold Percent option, or the amount specified for the Balancing Threshold Amount option on the Specify Ledger Options page.

Note: If any of the journals on the worksheet aren't balanced, then none of the journals on the worksheet are uploaded.

Journal Validation Examples

Example 1: A single currency journal with unequal accounted debit and accounted credit amounts.

  1. On the Specify Ledger Options page, set:

    • Currency: USD

    • Enable Suspense isn't checked for General Ledger

    • Balancing Threshold Percent = 1 percent

  2. Here are the details for the Multiple Journals worksheet:

    • Journal Batch: Year End Adjustments

    • Journal: Bad debt adjustment

    • Ledger: Vision Operations (USA)

    • Accounting Date: 9/30/22

    • Source: Spreadsheet

    • Category: Adjustment

    • Currency for each line: EUR

    • Entered Debit: 240

    • Entered Credit 240

    • Accounted Debit: 270.4

    • Accounted Credit: 270.82

This journal has a single currency. The entered debit amount is equal to the entered credit amount, but the accounted debit and credit amounts are different. The percentage difference of the accounted amounts is (0.42/270.82)*100 = 0.155 percent. The percentage difference is less than the 1 percent threshold provided on the Specify Ledger Options page. Hence the journal is balanced.

Example 2: A multicurrency journal that isn't balanced by clearing company.

  1. On the Specify Ledger Options page, set:

    • Currency: USD

    • Enable Suspense option isn't checked for General Ledger

    • Balancing Threshold Percent = 1 percent

    • Enable intercompany accounting option is checked

  2. Here are the details for the Multiple Journals worksheet:

    • Journal Batch: Intercompany accruals

    • Journal: Rent accruals

    • Ledger: Vision Operations (USA)

    • Accounting Date: 9/30/22

    • Source: Spreadsheet

    • Category: Accrual

    • Currency on all journals line: USD

    • Clearing company on journals lines: 99, 98

    • Total Entered Debit for all journal lines: 2300

    • Total Entered Credit for all journal lines: 2300

    • Total Entered Credit for lines with clearing company 99: 2300

    • Total Entered Debit for lines with clearing company 99: 0

    • Total Entered Credit for lines with clearing company 98: 0

    • Total Entered Debit for lines with clearing company 98: 2300

This journal has a single currency and two clearing companies. The clearing company was used as the grouping criterion. The lines with clearing company 99 are grouped into one journal and the lines with clearing company 98 are grouped into another. So, although the journal name is the same, the validation evaluates each group of clearing company lines as a separate journal. Both journals are unbalanced since one has the credit amount and the other has the debit amount.