The Ledger Item Editor allows you to view, create, and edit ledger transfer profiles. Ledger transfer profiles identify the accounts to close out for the year end process and identify the target accounts into which to roll the balances.
Understand the Year End Closeout Process
In the Ledger Item Editor workspace, you can maintain ledger transfer profiles. Eagle's accounting solution uses ledger transfer profiles during the year end closeout process. The year end close out process moves ledger balances from Income, Capital, and Expense accounts to an Accumulated Earnings account, setting these general ledger account balances to zero for the start of the next fiscal year.
Understand the Ledger Transfer Profile
Eagle Accounting provides a ledger transfer profile by default when you install Eagle's accounting solution. However, the accounts designated for the year end closeout process are customizable. You can choose any accounts to close out for the year end process. Likewise, you also can choose the target account into which to roll the balances.
The ledger transfer profile is comprised of the following criteria:
- Transfer Category. Represents the STAR Default category or a regulatory category, for Eagle Accounting clients that use IFRS. This allows you to customize separate regulatory categories to close out different ranges of accounts into various year end accounts.
- Target and Offset Account. The target account is the account that retains the year end closed out ledger balances. The year end closeout process moves the ledger balances from the source accounts to the target account that retains the year end closed out balances. The offset account is a memo account for the contra postings to the target account.
- Source Accounts. One or more individual accounts or ranges of accounts that roll up to the target account. These are the general ledger accounts that the system zeros out for the start of the next fiscal year.
For a given transfer category, you can define a target account and an offset account, along with a set of one or more source accounts.
For example, in the previous figure, you use the left grid to select the row for the STAR Default transfer category that rolls up to target account 3003000100, Accumulated undistributed income(loss). The offset account is 9999999999, Currency contra account. When you select this row for a Transfer Category/Target Account/Offset Account grouping, you see the corresponding source accounts in the right grid. As a result, when you process a year end closeout, the system rolls up the ledger balances for these source accounts and moves the ledger balances to the target account 3003000100, Accumulated undistributed income(loss).
About IFRS and the Year End Closeout Process
For Eagle Accounting clients that use IFRS, the year end closeout process can reflect the regulatory categories used. When you assign a Regulatory Category (tag 12387) to an entity/accounting basis, you determine which year end closeout process the system uses. When processing year-end closeout entries, the ledger transfer profile uses the Regulatory Category value on the accounting basis to determine the correct closeout rules. The Ledger Item Editor allows for different postings, depending on the accounting basis and any associated regulatory category.
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