Users have the ability to automatically move costs from one department to another or several others, known as the Balance Reallocation process. This option can be run multiple times with the original balance being left cleared or left as required.
When going to: Accounts > Nominal Ledger > Journal Entry > Automatic Journals, select the ‘Balance Reallocation’ tab.
You will be able to specify the name of the journal, End Period and End Year.
Under the Balance to Reallocate option there are two nominal boxes:
Source Nominal: This is the code that is used to obtain the balance to be moved between the Clearing and Reallocation Codes.
Clearing Nominal: This is where on the end posting will be posted.
(If the user is using Short Code functionality, if a specific level is selected only the balance for that location will be moved)
If there is a £1000 Debit balance in the Source Nominal, the Clearing Nominal will be credited for the opposing £1000. It will then Debit the £1000 amongst the Reallocation Nominal(s) based on the percentages selected by the user.
This will only clear the Period Balance and not the YTD balance, for the period that the journal is ran within.
If the Source and Clearing nominal are set as the same Nominal Code, the Source Nominal will have its balance cleared. If different, the Source Code will retain its original balance so it is preserved for audit/tracking purposes.
The reallocation can be split as many times as needed into different nominal codes, short codes or a mixture of the two.
When looking at the Journal List you can prioritise the journals and reorder them to the order you want them to run in. This is done by single-clicking the name of the journal and using the arrows at the bottom of the page.
This allows for one journal to move one amount into a reallocation code and then another journal to use that code as its source code and split the postings further.
These journals and carried out when the Nominal Update function is selected, the same as Standard Journals.
*** Standard Journals will be processed before Balance Reallocation Journals. If any of the Standard Journals are going to post to a Source Code used in a Balance Reallocation Journal, the balance that will be used will include the value that has been posted by the Standard Journal. ***
After the Standard Journals have been processed, a popup will appear asking for the Journal Date that you would like the Balance Reallocation Journals to be posted with. This will be asked for every time this process is ran.
Once the date has been filled in, and the Complete button has been selected, a processing animation will appear and it will then advise how many journals have been processed. After clicking Close, a Daybook print option will be presented that can be printed to view all of the postings that have been made if required.