All transactions must be balanced within a fund in AptaFund. In other words, every transaction must have matching credit and debit entries within the same fund element. If you debit fund 250, you can't then credit fund 100 — you must credit fund 250 to create a balanced transaction. Therefore the fund element is defined as a static element — it must be the same for both sides of the balancing transaction. Click here for more information on static elements.
To facilitate the integration of all the modules in AptaFund, the system can automatically generate the balancing side of many of the general ledger transactions. This action requires the existence of balancing accounts. If a transaction requires a balancing account and one has not been defined, the transaction can't be completed. For example, transactions for disbursing cash for accounts payable warrants, offsetting budget entries, and posting profits or losses when closing a cycle require balancing accounts.
When the user creates an account code using a controlling element value tied to a balancing account type, that account code becomes the balancing account.
When a balancing account is needed for a transaction, AptaFund looks for the account code with a matching fund element, the controlling element defined for the required balancing account type, matching static element values, and all other elements set at the default.
It then replaces the value of the controlling element in the account code with the appropriate balancing account.
Assign balancing account types to a controlling element value in Element Value Maintenance. Click here for more information on the required balancing account types.
Create balancing accounts manually or automatically — by setting the Auto Create Balancing Account Codes value to Yes in System Configuration.
When you set the Auto Create Balancing Account Codes value to Yes in System Configuration, a balancing account code can automatically be created when a transaction needs to be written that uses a balancing account code that doesn't already exist.
Selecting No prevents such a transaction from being written, and then a user with the required security access must manually enter the balancing account code in the Chart of Accounts window before the transaction can be written.
The advantage of selecting Yes is that it allows employees who are performing critical tasks, such as paying bills, to continue working even if a user with Chart of Accounts Administration security access isn't available.
About Due To / Due From balancing accounts
About required balancing account types — this table lists the required balancing account types, their account types, and their uses.
Return to Element Value Maintenance Overview
Return to Chart of Accounts Window Overview
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