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Loss of CTA when a journal type does not contain journals anymore

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  • 1.  Loss of CTA when a journal type does not contain journals anymore

    Posted Thu May 12, 2022 09:08 AM

    Issue: Loss of CTA when a journal type does not contain journals anymore

     

    Situation:

    A specific journal type for manual journal entries only contains 1 journal entry.

    We have an example where the CTA is lost upon the following occurrences flows and main accounts:

     

    ENTRY in LC

    ENTRY translated in LE

    Y-2:

    Dt Asset                                                                100

    Ct P&L                                                                                     100

     


    Y-2:

    Dt Asset                                                                          93

    Ct P&L                                                                                    90

    Ct CTA                                                                                       3

     

    Y-1: Asset in Y-2 released through P&L in Y-1:

    Dt P&L                                                                 100

     

    Ct BB Result of the period                                                       100

    Dt 150 Result of the period transfer result Y-2    100

     

    Ct 150 Retained earnings transfer result Y-2                           100

    Ct Retained earnings (Result Y-2)                                        100





    Y-1:

    Dt P&L                                                                             95

     

    Ct BB Result of the period                                                        90

    Dt 150 Result of the period transfer result Y-2      90

     

    Ct 150 Retained earnings transfer result Y-2                        90

    Ct Retained earnings (Result Y-2)                                          90

     

    Ct CTA                                                                                         5

     

    Y:

    Dt BB Result of the period                                   100

    Ct 150 Result of the period transfer result Y-1                         100

     

    Dt 150  RE transfer Result Y-1                            100

    Ct BB Retained earnings                                                         100

    •  Entry is in fact zero in the main accounts




    Y:

    Dt BB Result of the period                                         95

    Ct 150 Result of the period transfer result Y-1                         95

     

    Dt 150  RE transfer Result Y-1                                   95

    Ct BB Retained earnings                                                          90

     

    Ct CTA                                                                                        5

     

    Y+1:

    The system automatically makes the journal empty, since no main accounts remained in Y.

    Y+1:

    As the entry is empty in local currency, the entry in LE is also empty. As such the CTA of 5 from Y is lost.

     

    HOWEVER! The CTA of 5 that was included in the translated entry in LE in Year-1 is lost resulting in an error in the equity reconciliation/roll from Year-1 to Year.

    Question:

    Is there a solutions to fix this issue of losing CTA upon an empty journal type?



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    Anouk Meerschaert
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  • 2.  RE: Loss of CTA when a journal type does not contain journals anymore
    Best Answer

    Posted Mon May 16, 2022 09:19 AM
    Hi Anouk
    I expect the solution is to change the currency conversion code of the opening balance retained earnings account.
    You probably currently have an I-code there, against the Closing balance last year. If you change the I to a C, the opening balance will remain.
    Regards
    Kerstin

    ------------------------------
    Kerstin Kernwein
    ------------------------------