Example of Balancing Segments
In this example, an organization wants to balance their accounting entries and general ledger impact by fund as well as by subsidiary. The Fund segment they have created has the following values:
-
Operating
-
A
-
B
The company creates a vendor bill for expenses in the amount of $100.00. The general ledger impact of this vendor bill balances debits and credits by Parent Company (subsidiary) but not by any of the segment values:
|
Account |
Amount (Debit) |
Amount (Credit) |
Posting |
Memo |
Name |
Subsidiary |
Fund |
|---|---|---|---|---|---|---|---|
|
Accounts Payable |
|
$100.00 |
Yes |
|
US Vendor |
Parent Company |
Operating |
|
Miscellaneous Expense |
$40.00 |
|
Yes |
|
|
Parent Company |
A |
|
Miscellaneous Expense |
$60.00 |
|
Yes |
|
|
Parent Company |
B |
The company runs the balancing segments process. This process balances the accounting entries by segment within the subsidiary by automatically generating a balancing journal. The balancing journal posts to the intersegment accounts selected when setting up the feature. The balancing journal is as follows:
|
Account |
Amount (Debit) |
Amount (Credit) |
Posting |
Memo |
Name |
Subsidiary |
Fund |
|---|---|---|---|---|---|---|---|
|
Intersegment Due From |
$100.00 |
|
Yes |
Balancing Line |
|
Parent Company |
Operating |
|
Intersegment Due To |
|
$40.00 |
Yes |
Balancing Line |
|
Parent Company |
A |
|
Intersegment Due To |
|
$60.00 |
Yes |
Balancing Line |
|
Parent Company |
B |