| GL Account matching (Old) |  |
| GL account matching consists of the matching of credit and debit entries on a single ledger account. GL account matching is usually performed on the following types of ledger accounts: Interim accounts Clearing accounts Suspense accounts When you close a period, the balance of these ledger accounts must be zero or the smallest amounts possible. Usually, the related postings balance and can be matched. If the amounts of the related transactions differ by a small amount, ERP LN can generate a matching transaction to balance the account. When you analyze these accounts, you can print a report of the transactions that balance and you can examine the unmatched postings. Basic rules for GL account matching The basic rules for GL account matching are: You can perform GL account matching on accounts that are: Of the type Balance Sheet or Profit & Loss. Defined as matchable accounts. The Matching check box must be selected for the account in the Chart of Accounts (tfgld0508m000) session. Not used for integration transactions. You can only perform GL account matching of entries on the same account. The transactions to be matched can be in different transaction currencies. You can perform GL account matching on finalized transactions. You can unmatch transactions, even if the matching transactions have already been finalized. In the GL account matching process, the following situations can occur: There is no difference between the sums of the credit amounts and the debit amounts of the selected transactions, or the difference is within the currency tolerance. The transactions are matched. The sums of the credit amounts and the debit amounts differ by the tolerance percentage and/or the tolerance amount or more. The transactions cannot be matched. The difference between the sums of the credit amounts and the debit amounts is within the matching tolerance percentage and less than the matching tolerance amount. The transactions can be matched with a matching transaction for the difference amount. To match with a matching transaction If a matching transaction is generated for the difference amount, the amounts in the home currencies are calculated from the difference amount in the transaction currency by using the internal exchange rate type. The following situations can occur: The remaining amount in each of the home currencies is zero or within the currency tolerance. The remaining amount in at least one home currency is not zero. This can be caused by currency rate changes between the transaction dates of the transactions to be matched. Two possibilities exist: The differences in the home currencies stay on the GL account. To balance the account in the home currencies, a second transaction is generated for the difference amounts in the home currencies. The transaction is directly based on the difference amount, no currency rates are involved. One side of the matching transactions balances the transactions on the GL account. The other side of the matching transactions is posted to a Matching Account. Example 1: Home currencies balance After generating the matching transaction, no difference amount remains in the various home currencies.
| Transaction amount | Transaction currency | D/C | Local currency EUR | Reporting currency 1 USD | Reporting currency 2 CAD
--- | --- | --- | --- | --- | --- | ---
Transaction 1 | 100 | GBP | D | 90 | 101 | 50
Transaction 2 | 50 | GBP | C | 45.4 | 49.80 | 24.4
Transaction 3 | 51 | GBP | C | 45.5 | 51.10 | 25.1
Matching transaction | 1 | GBP | D | 0.9 | 0.10 | 0.5
Result | 0 |  |  | 0 | 0 | 0
The other side of the matching transaction is posted to the Matching Account. In this case, the entry on the Matching Account consists of: GBP 1; EUR 0.9; USD 0.1; CAD 0.5. Example 2: Incomplete matching A currency difference amount remains in some of the home currencies. This can happen both if a matching transaction is needed and if a matching transaction is not needed as shown in this example.
| Transaction amount | Transaction currency | D/C | Local currency EUR | Reporting currency 1 USD | Reporting currency 2 CAD
--- | --- | --- | --- | --- | --- | ---
Transaction 1 | 100 | GBP | D | 90.1 | 101.02 | 50.5
Transaction 2 | 100 | GBP | C | 90.9 | 101.1 | 50.5
Result | 0 |  |  | 0.8 | 0.08 | 0
Example 3: Matching based on a difference After generating the matching transaction a currency difference amount remains in the home currencies. A second matching transaction is generated based on the difference amounts. This transaction is comparable to a currency difference transaction. The transaction amounts in the home currencies are not related to each other through a currency rate.
| Transaction amount | Transaction currency | D/C | Local currency EUR | Reporting currency 1 USD | Reporting currency 2 CAD
--- | --- | --- | --- | --- | --- | ---
Transaction 1 | 100 | GBP | D | 90.1 | 101.2 | 50.1
Transaction 2 | 100 | GBP | C | 90.9 | 101.1 | 50.5
Result | 0 |  |  | 0.8 | 0.08 | 0
Transaction based on difference in local currency |  |  |  | 0.8 |  |
Transaction based on difference in reporting currency |  |  |  |  | 0.08 |
Result | 0 |  |  | 0 | 0 | 0
The other side of the matching transaction is posted to the Matching Account. In this case, the entries on the Matching Account consist of: First entry: GBP 1; EUR 0.9; USD 0.1; CAD 0.5. Second entry: GBP 0; EUR 0.8; USD 0; CAD 0. Third entry: GBP 0; EUR 0; USD 0.08; CAD 0. Frequently used accounts for general ledger account matching Sundry debtors and creditors accounts This account records receivables and payables that are not directly attached to the operating business cycle. For example, to register assignment expenses to be refunded and for which the posting is uncertain at the time of recording. This record is also used to record purchases on behalf of third parties, that must not be posted to the profit and loss account. Suspense accounts An account that records operations that cannot be posted definitely to an account. However, such accounts must not appear on the balance sheet. For example, when bank reconciliation is carried out to bring the balance of the company's account into line with that of the bank, the unidentified movements (such as customer payments) listed on the bank statements are posted to a suspense amount. Internal transfer accounts These clearing accounts are used for practical and controlled accounting operations, such as transferring cash funds to a bank account. In addition, such accounts are used for operations that require several accounting journals. Internal accounts must not appear on the balance sheet. Intracompany sales accounts These intracompany accounts are debited for goods and services provided, and credited for goods and services received. The accounts of a company's various branches must balance out and must not appear on the balance sheet. Account advances granted for personnel This is an account that records debit advances and credits them to salaries from which the advances are deducted. Group accounts These accounts record temporary advances of funds within companies of the same group. For some interim accounts, ERP LN automatically generates the transaction reference when the transaction is created. For example, the transaction reference can consist of the transaction origin plus the order number. Note Although you can perform GL account matching on ledger accounts that are used for integration transactions, it is recommended to use the reconciliation process. To set up GL account matching To set up GL account matching, take the following steps: In the Chart of Accounts (tfgld0508m000) session: Select the Matching check box for the accounts for which you want to perform GL account matching. The accounts must be of the type Balance Sheet or Profit & Loss, and they must not be used for integration transactions. For each matchable account, select the Default Matching Sequence. Zoom to the Matching Series by Ledger Account (tfgld1517m000) session. In the Matching Series by Ledger Account (tfgld1517m000) session, define the series used to create document numbers for the generated matching transactions. If required, in the Rebuild History for GL Account Matching (tfgld1218m000) session, rebuild the ledger account history. In the Company Parameters (tfgld0503m000) session, define the following data: The Statutory Matching Account and the Complementary Matching Account. Depending on whether the GL account is a statutory or a complementary account, one side of the matching transactions is posted to the statutory or the complementary matching account. The Matching Tolerance (Percentage). The Matching Tolerance (Amount). The Matching Transaction Type. In the Manual Matching Parameters box, specify whether you want to: Allow incomplete matching, where after matching a small currency difference remains in at least one home currency. Generate transactions based on the difference amounts in the home currencies after matching. Match transactions in different transaction currencies. The home currency for the matching transaction if the transaction currencies differ. To perform GL account matching You can perform GL account matching: Automatic, in the GL Account Matching - Automatic (tfgld1216m000) session. The transactions must have a transaction reference. To generate matching transactions, select the Generate Transactions check box. Note ERP LN can only automatically match debit transactions with credit transactions. For example, to match a debit posting of a positive amount with a debit posting of a negative amount, you must run the GL Account Matching - Manually (tfgld1516m000) session. Manually, in the GL Account Matching - Manually (tfgld1516m000) session. In this session, you can select the transactions that you wish to match. You can also use this session to match transactions that are not linked by a transaction reference. If the selected transaction balance, on the ERP LN menu you can click Match without Transaction. If the sums of the credit amounts and the debit amounts of the selected transactions differ, you can click Match with Transaction. If you click Match with Transaction, the Create GL Account Matching Transactions - Manually (tfgld1217m000) starts. In the Create GL Account Matching Transactions - Manually (tfgld1217m000) session you can enter the matching account and the dimensions and various other details of the matching transaction. To generate a matching transaction for the remaining differences in the home currencies, select the Post Differences check box. In the following sessions, you can match manually entered transactions prior to finalization: Journal vouchers, in the Journal Vouchers (Single Line) (tfgld1103s000) session. Purchase transaction lines, in the Purchase Invoice Transactions (tfacp1120s000) session. Sales transaction lines, in the Sales Invoice Transactions (tfacr1111s000) session. Bank transaction journals, in the Cash Management Transactions (tfcmg2120s000) session. If in these sessions you create transactions on a matchable ledger account, on the Specific menu you can click GL Account Matching to start the GL Account Matching - Manually (tfgld1516m000) session. You can use this session to match transactions and to view the debit transactions and credit transactions on the account. Note After matching an unfinalized transaction, you cannot make any changes to the transaction. Rebuild GL accounts for matching You can define a ledger account on which transactions already exist as a matchable account. In the Chart of Accounts (tfgld0508m000) session, you can select the Matching check box. If you do this, the corresponding Balance Analysis (tfglf116) table must be filled with the existing transactions. To generate the records in the Balance Analysis (tfglf116) table, run the Rebuild History for GL Account Matching (tfgld1218m000) session. |