I recently had a question about what Balancing Segment Value (BSV) to enter in the accounts for the All Other All Other rule and I have to admit it could be a little confusing. There is a technical limitation with the flexfield infrastructure we use to capture and store accounts which means we have to have some value for BSV and Intercompany Segments, even though we will substitute in the real BSV when we generate the Intercompany accounting.
Here is an example (chart of accounts is balancing-natural account-intercompany)
I define the following rule
|Debit BSV||Credit BSV
||Debit Account||Credit Account|
|All Other||All Other||99-4000-99||99-2000-99|
Then I enter a journal
When I post this, the balancing lines generated are
So you can see we discard the BSV and Intercompany segment from the set up and use the correct ones from the transactions. If we always reatined 99, we would be using 99 as a clearing company for everything, if you wanted to do that you would use the clearing company options.
Filed under: Intercompany |