Enter Adjustment Journals

Explanation

This activity is used to enter adjustment journals that are required to adjust the transferred balances which will be used in the Group Consolidation process. Adjustment journals can be entered against reporting entities which represent reporting companies, or against separate adjustment entities. External Adjustment is entered in the External Adjustment Journal Assistant.

All rows entered for a journal should be in balance in the reporting entity currency before the status can be changed to Awaiting Approval or Approved. The rows should also balance separately for Balance Sheet accounts and Income Statement accounts. If not, the system will automatically create balancing rows based on posting rules defined for GCP1 and/or GCP2 posting types in Posting Control.

Prerequisites

In order to perform this activity:

• A reporting transaction type with Adjustment function should have been defined.
• A reporting entity should have been defined and connected to the reporting transaction type with Adjustment function.
• A balance version should have been defined.
• The used combination of reporting transaction type, balance version and period should have the Open period status for the used reporting entity in the Reporting Status page.
• Current user should have security access to enter adjustment journals for the used combination of reporting entity and reporting transaction type.

System Effects

As a result of this activity, an adjustment journal is created. If this journal has the Approved status, it will be included in the balance consolidation. Journals with In Progress or Awaiting Approval status can also be included if required.

 

Pages

Adjustment Journal Entry
External Adjustment Journal Assistant

Activity Diagrams

Transfer Balances