Question

Open Item Accounting - General Ledger IFS

  • 17 May 2021
  • 3 replies
  • 1214 views
C
Rank
Userlevel 2
Badge +2

Good afternoon,

 

Does IFS support open-item managed GL ledgers? 

I have lots of users booking entries against balance sheet accounts, and we require to go through a lengthy month-end process to reconcile netting debits/credits (whether these be auto reversing journals or other types), in order to understand what makes up balances on our balance sheet. This is a lengthy and manual exercise, often involving thousands of lines in excel.

It’s common for accounting software to enable open-item management of GL ledgers, allowing users to either:

  •  ‘close’ debits/credits against each other that net to zero
  •  ‘close’ debits/credits against each other that dont net to zero but are within a tolerable threshold - writing off misc FX/variances to P&L accounts.
  • automatically ‘close’ debits/credits against each other, if they pertain to auto reversing entries.

Using the above functionality, allows balance sheet accounts to be maintained real-time, enabling management to get visibility of balance sheet line items without needing to wait to the end of the month, after manual recs are prepared. 

Such functionality usually involves ‘open item key’ tags in the GL data tables.

Note this is not the same functionality as having AP/AR subledgers. 

 

Help would be much appreciated

 

Chris

This topic has been closed for comments

3 replies

MadushaDissanayake
Rank
Userlevel 7
Badge +17

Hi,

 

I’m not sure if I understood your requirement in the exact way.

But, the Account Matching process can used to match one or more debit transactions from one specified account with one or more credit transactions from the same account in the General Ledger. This can be done manually or automatically. 

 

Manual Matching - Manually match the transactions by selecting the relevant line​

  • Enter accounts for which the transaction matching should be performed, in Accounts Matching window​

  • Open Account Matching window and enter Account, Date or Period and Voucher Category for Manual Matching​

  • Tick the transactions to be matched – they will move to the lower section of the screen

  • Difference must be zero for a match to be saved

  • Cancel a performed matching of transactions if necessary

Automatic Matching - Automatically match the transactions using Automatic Matching RMB​

  • Enter account for which the automatic transaction matching should be performed, in Accounts for Automatic Matching​ window

  • Perform Automatic Matching via Right click > Automatic Matching​

  • Open Account Matching dialog box and enter Matching date or Period and specify relevant Automatic Matching Attribute.​

  • Once matching data is specified, the matching will be  automatically executed as a Background job.​

  • Successfully matched transactions will carry Matching ID & Matching date.​

  • View matched transactions using given RMB option

You also can use Unmatched Transactions Report 

Furthermore, you can view the matched transactions in GL Voucher Rows Analysis too

Feel free to let us know if you have more questions.

 

Thanks and  Best Regards

Madusha

C
Rank
Userlevel 2
Badge +2

Thanks Madusha, this is very helpful. 

Can you advise on how this functionality can be turned on - and do you have any guidance manuals that would be relevant for me to look at?

When you say that account matching can only occur for items that match to zero, what does this mean? Does this mean that both local currency and GL base currency must equate to zero? Or could a transaction be matched if, say, only the local currency nets to zero. Would there be any automatic journal generation behind the scenes to account for any base currency FX variance?

 

E.g Dr GBP 100 (130 USD)

       Cr GBP 100 (135 USD)

        - could these be matched? 

 

Is there any ability for IFS to support item matching for items that dont net to zero? Say, due to misc FX or other small reconciling items?

 

Thanks

 

Chris

E
Rank
Userlevel 2
Badge +4

@ChrisTin 

My take on the FX query is that this should have been taken care of transaction currency USD at the ‘nullification’ of the Dr / Cr in accounting currency GBP and hit the PnL accoridingly. 

Note: Automatic Matching entered IFS in Applicaiton 10.

For Application 9 users the Manual Option i available.

F1Doc: ...ifsdoc/documentation/en/ProcessModels/Process_Model/AccountMatching.htm

Make a Saved Query (Shift + F3) in the Unmatched Transactions part of the window and sort the Amounts by Absolute numbers so you get the Cr with the Dr 

 

Terms & ConditionsCookie settings