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:
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:
Is the composition of all the ledger accounts entered with a cost center.
Is the composition of all cost centers and ledger accounts entered with an accounting item.
Is the composition of all accounting items, cost centers and ledger accounts entered with a value class.
The following types of balances are used in these reports: Trial Balance by Cost Center, Trial Balance by Item, etc.
See Also