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    Kevin McCulley
    What is the result of disabling a combination which still...
    Topic posted October 7, 2019 by Kevin McCulleyBronze Medal: 1,250+ Points, tagged Financials, General Ledger, Subledger Accounting 
    31 Views, 2 Comments
    Title:
    What is the result of disabling a combination which still has a balance?
    Content:

    Hi all

    Usually when disabling a segment such as cost centre segment we will ensure that all balances on all combinations for that segment have been moved elsewhere.

    Our segments include a segment for project number and we are using Projects module and import from Cost Management and Payables daily, with Projects posting to the GL daily too. The projects team have requested that we disable certain project numbers in the GL since those projects are now complete, however there are still balances on the combinations for those projects which has me concerned.

    Can anyone give advice on what the result of disabling combinations with balances on is, particularly with respect to reporting or integrity of trial balance info.

    Thanks,

    Version:
    19C

    Comment

     

    • Neil Ramsay

      Disabling a segment and hence combination will prevent posting to the project. Reporting should still be OK. If you encounter a problem, the segment value or combination can always be re-enabled so this is not a life or death decision.

      However, I don't really understand the business significance of a complete project that still has a (balance sheet) balance. By disabling the segment value, you are saying that there will never be a transaction that sets the balance to zero and hence, the project will be on the books forever. It doesn't sound right.

    • Mark Simpson

      Hi,

      Similar comment to the last comment really, although hopefully clearing the balances from those code combinations (using the segment value to be closed) is a prerequisite to actually closing it within your internal processes. It should still be fine in reporting terms however no postings will be allowed to those combinations so the balance is left there (unless its P&L, in which case the year-end sweep to retained earning will clear it for the new year). From a transactional perspective, this could lead to problems at month-end due to interfaces fails or larger suspense balances. 

      The problem with closing a code without the balances being cleared is that it then starts to happen more and more, therefore the locked-in value starts to build up and the effort required clearing it all then increases too and it ends up almost a mini project (speaking as someone whose had to do these tidy ups at a few places). Its also not particular good reporting balances on codes which are no longer in use.