Technical Specifications (CTBA130 - SIGACTB)

This topic shows how balances are treated in the Management Accounting module.

Accounting Balances

The Management Accounting module allows the user to use different types of balances, which will be used later for generating reports and for queries.

However, internally, the system treats balances differently, by identifying them as Basic Balances and Compound Balances, irrespective of the type of balance chosen.

Basic Balances

The amounts corresponding to this type of balance come directly from the accounting entry and are composed of the following entities:

• Account
• Account + Cost Center
• Account + Accounting Item
• Account + Value Class
• Account + Cost Center + Accounting Item
• Account + Cost Center + Value Class
• Account + Cost Center + Accounting Item + Value Class
• Account + Accounting Item + Value Class

Each basic balance can have several types of accounting balances.

Compound Balances

These are the grand total balances of entities, i.e., they are compositions of amounts of lower level entities related to them. Note that these amounts can be obtained directly from the accounting entry:

• Cost Center

Is the composition of all the ledger accounts entered with a cost center.

• Accounting Item

Is the composition of all cost centers and ledger accounts entered with an  accounting item.

• Value Class

Is the composition of all accounting items, cost centers and ledger accounts entered with a value class.

• Cost Center vs. Accounting Item
• Cost Center vs. Value Class
• Accounting Item vs. Value Class
• Cost Center vs. Accounting Item vs. Value Class

The following types of balances are used in these reports: Trial Balance by Cost Center, Trial Balance by Item, etc.

See Also

• Balance Parameters