My Client has two units – Unit 1 and Unit 2. Both are mapped as Dimension values as “Unit” being taken as Global dimension.
My Client needs to generate a “Unit wise Trial Balance”. To generate such a Trial balance it is encountering these problems:
Say, a sales is made by Unit1 >
Debtors X A/c ..Dr (Dimension – Unit1) Rs. 2000/-
Sales A/c …Cr (Dimension- Unit1) Rs. 2000/-
Say, for the same Debtor Unit2 makes a sale>
Debtor X A/c …Dr (dimension – Unit2) Rs. 3000/-
Sales A/c… Cr (dimension – Unit2) Rs. 3000/-
In this regards say on a later date Debtor X makes a full payment of Rs 5000/- by a single check.
Here the only Bank Account my client has is in Unit2.
Client books the receipt by applying the two Posted invoices documents in the Receipt Journal or Receipt Voucher. Thus The user in Unit2 will book it as :
Dr Bank A/c (Dimension – Unit2) Rs5000/-
Cr Debtors X A/c (Dimension –Unit2) Rs 5000/-
As in the receipt journal we can give only one Dimension against the Balancing Bank A/c. The Client is not willing to enter the transaction giving two lines for Balancing bank A/c-(one for each dimension), saying it will affect his reconciliation efforts at the end of the month
In this situation the receipt will get posted with only one dimension.
Thus the Client is able to obtain Dimension wise Profit & Loss Account but he is unable to obtain dimension wise tallied Trial balance & Balance-Sheet.
Please suggest a course of action.
Why don't u reverse the transaction on unit1 then enter the corresponding transaction with unit2 then apply the payment made in unit2(5000) to the two transaction made in unit 2(2000,3000).
The receipt in the Receipt Journal can be posted as follows
Cr Debtors X A/c (Dimension –Unit1) Rs 2000/- Applied to Invoice Unit1
Cr Debtors X A/c (Dimension –Unit2) Rs 3000/- Applied to Invoice Unit2
Posting the above journal will create one Bank Ledger Entry, and thus it will not create any issue during bank reconciliation.
Since Unit1 does not have a bank account, the B/S for Unit1 will not show Bank account, but the same can seen on Unit2
Rajib Lochan Huzuri
It will not produce accurate trail balance. There is a method that can be adopted in this situation. If you are interested to know, please reply
In order to produce accurate trail balance and to produce a correct balance sheet, you need to adopt the following entry. To serve this, you may create a G/L Account Called Bank Control Ac, under Bank and then make the following entries
Dr. Bank Account - Unit 1 5000
Dr. Bank Control A/c- Unit 2 2000
Debtors Account Unit 1 3000
Debtors Account Unit 2 2000
Bank Control A/c Unit 1 2000
So each branch will show the correct cash/bank balance when taken in isolation and when produce combined report, it is net off automatically
For any further query, you may contact me at <email address removed by admin>
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Best regards,Erik P. Ernst
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