Forum Stats

  • 3,733,801 Users
  • 2,246,822 Discussions
  • 7,856,878 Comments

Discussions

Journal Entry offset question

user9125740
user9125740 Member Posts: 10 Red Ribbon

Scenario: loaded a journal entry in Sept 2020. After consolidation there is an offset in Oct. What would cause this offset and how can I fix it? Thanks.

Best Answer

  • Jeo123
    Jeo123 Member Posts: 508 Gold Badge
    Accepted Answer

    It's because you're basically loading the same thing.


    Let's use your data file since that's one is easier. In September you loaded YTD 30M, then in October, you said on a YTD basis you wanted the balance to be zero.

    If you want the balance to be 0, that means you're reversing the previous activity. If I have sales of $1000 in January, the only way I can have YTD sales of 0 is if I have negative sales in February.

    In your case, the question becomes what's the correct balance in October for the full year. If the ending balance is supposed to be $0 YTD, then negative periodic $30M is correct.

    If you don't want a periodic change, that means you want to keep the same September balance on a YTD basis. That give you two options.

    1) Load a Periodic 0 to october.

    2) Load a YTD $30M to october.

    For journal entries, In practice, we usually wind up carrying forward journal entries through the year until the P&L collapses to retained earnings at the start of the next year. That effectively means we're loading the $30M YTD in your case.

    Anand Thotauser9125740

Answers

  • Anand Thota
    Anand Thota Member Posts: 28 Red Ribbon

    Hi


    Could you please provide exact POV that you are looking ?


    Thanks,

    Anand Thota

  • user9125740
    user9125740 Member Posts: 10 Red Ribbon

    Is this helpful?

  • Jeo123
    Jeo123 Member Posts: 508 Gold Badge

    Your actual scenario is likely set up as a YTD scenario. When you don't load something in the next period, you wind up with a Year to Date 0 balance.

    In order to get from 30M YTD in september to 0 YTD In October, the system calculates a periodic -30M.


    The Zero behavior is a property that is set in your Scenario Metadata. Almost all companies treat Actual scenarios as YTD though so this behavior is very common.

    Anand Thota
  • user9125740
    user9125740 Member Posts: 10 Red Ribbon

    Jeo123,


    Thank you so much for the explanation. That makes sense... now the next question. I have tried several attempts to load zeros to the intersection in Oct but I can't get it to zero out.


    Attempt #1

    Attempt #2

    When I run the consolidation for Oct I still see the $30M.

    Thank you for your assistance. Jen

  • Jeo123
    Jeo123 Member Posts: 508 Gold Badge
    Accepted Answer

    It's because you're basically loading the same thing.


    Let's use your data file since that's one is easier. In September you loaded YTD 30M, then in October, you said on a YTD basis you wanted the balance to be zero.

    If you want the balance to be 0, that means you're reversing the previous activity. If I have sales of $1000 in January, the only way I can have YTD sales of 0 is if I have negative sales in February.

    In your case, the question becomes what's the correct balance in October for the full year. If the ending balance is supposed to be $0 YTD, then negative periodic $30M is correct.

    If you don't want a periodic change, that means you want to keep the same September balance on a YTD basis. That give you two options.

    1) Load a Periodic 0 to october.

    2) Load a YTD $30M to october.

    For journal entries, In practice, we usually wind up carrying forward journal entries through the year until the P&L collapses to retained earnings at the start of the next year. That effectively means we're loading the $30M YTD in your case.

    Anand Thotauser9125740
  • user9125740
    user9125740 Member Posts: 10 Red Ribbon

    Jeo123

    Thank you for explaining. I was able to load the entry via data load method w/ the zeros in the remaining months. I greatly appreciate your assistance.


    Jen

Sign In or Register to comment.