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Help me understand implication of balancing segment

in General Ledger & Intercompany 3 comments

Commonly, balancing segment is assigned to legal entities. So in Chart of Account, it is assigned to COMPANY segment. This means that when account combination has Company segment, the journal entries must balance. For instance:

Company-Department-Account

Dr. 101-100-101

Cr. 102-101-101

Since this isn't balance, the system will automatically generate additional journal entries:

Dr. 102-101-101

Cr. 101-100-101


So my questions are:

  1. Wouldn't that result to total balance of Zero as it is posted in the same ledger?
  2. What's the benefits of using multiple balancing segment when the primary balancing segment already balances the entries?
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