Release 380: Storno presentation - Month-end closing entries with negative balance in Interactive Balance

Background

In Exact Globe, Storno presentation is not supported in menu path Finance/Reports/Interactive balance for month end closing entries with negative balance.

 

Example:

Closing balance expense account at the end of the month = -500 EUR

Closing balance revenue account at the end of the month = -1.000 EUR

The closing entries shown in menu path System/Financial/Process profit & loss are:

	Debit	Credit
Profit & loss account	-500
Expenses		-500
	Debit	Credit
Revenue	-1.000
Profit & loss account		-1.000

In menu path Finance/Reports/Interactive balance, the following entries are shown in the trial balance:

	Debit	Credit
Expense account	0	0
Revenue account	0	0

However, to comply with the legal requirement under Storno, the entries in the trial balance should be shown in the following manner instead:

	Debit	Credit
Expense account	-500	-500
Revenue account	-1.000	-1.000

What has been changed

Now, Storno presentation is supported for month end closing entries with negative balance in menu path Finance/Reports/Interactive balance for following legislations:

• Romania
• Poland
• Czech
• Slovakia

Example on how the functionality works:

1. In menu path System/General/Settings/General ledger settings, enable both the 'Reversal entry' and 'Reversal Closing entry' checkboxes.

The settings are ON by default for Romanian legislation and they are not visible to the users.

2. In menu path Finance/General ledger/Chart of G/L's, ensure that the 'Balance' field is set up correctly as either 'D' for DEBIT or 'C' for CREDIT according to the legal requirement. For example, according to the fiscal law in Romania:

• The EXPENSE accounts can only be on DEBIT side, except for closing entries which will be on CREDIT side.
• The REVENUE accounts can only be on CREDIT side, except for closing entries which will be on DEBIT side.

The presentation of the closing entries will be dependent on this setting.

3. In menu path Finance/Reports/Interactive balance, Storno presentation is supported for month end closing entries with negative balance for the following layouts:

• Layout = 'Trial Balance'; Presentation = 'Debit / Credit';'Closing entries' checkbox enabled

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• Layout =  'Trial Balance'; Presentation = 'Debit / Credit / Balance'; 'Closing entries' checkbox enabled 

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• Layout = 'Balance Sheet / Profit & Loss'; Presentation = 'Debit / Credit'; 'Closing entries' checkbox enabled 

Purchase credit note

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• Layout =  'Balance Sheet / Profit & Loss'; Presentation = 'Debit / Credit / Balance'; 'Closing entries' checkbox enabled 

Purchase credit note

Sales credit note

• Layout = 'Profit & Loss'; Presentation = 'Debit / Credit'; 'Closing entries' checkbox enabled 

Purchase credit note

Sales credit note

• Layout = 'Profit & Loss'; Presentation = 'Debit / Credit / Balance'; 'Closing entries' checkbox enabled 

Purchase credit note

Sales credit note

Note:

Storno presentation is not supported in menu path Finance/Reports/Balance/PL.