Reviewing the Statement of Changes in the G/L Account Balances

Carlo is now looking to improve the process of creating and managing reports that monitor changes in specific general ledger account balances.

It is a common requirement for accountants working with the general ledger to be able to assess balance sheet positions according to their related transaction types. This analysis is typically required for:

• Asset accounts
• Inventory accounts for materials
• Equity accounts
• Provisions
• Balance sheet accounts related to valuation

The Statement of Changes in General Ledger app facilitates the analysis of various types of change statements, including changes in equity statements or changes in provisions/accruals statements.

Some preparatory work is required to be able to use this app.

The prerequisite is to define the semantic tags and link them to the financial statement versions: It is possible to use existing semantic tags or to create new ones.

Then, it is necessary to define the structure of the statement of changes: its type, including the required semantic tags and the transaction types. These are the steps involved:

• Define the Type of the Statement of Changes: Depending on its usage, it can be, for instance, a Statement of Changes in Provisions or a Statement of Changes in Equity.
• Assign Semantic Tags to Statement of Changes Type: Semantic tags, in conjunction with the general ledger account hierarchy, are assigned to the type of statement of changes. This will determine the general ledger accounts that are displayed in the report rows generated with the Statement of Changes in General Ledger app.

• Assign transaction types to statement of changes type: These assigned transaction types will be used as columns for the report in the Statement of Changes in General Ledger app. Examples of transaction types can be opening balance, closing balance, increase, decrease, and so on.

Once the structure for the statement of changes is completed, you can utilize the statement of changes in the General Ledger app to examine various types of changes statements, including changes in equity or provisions.

The Statement of Changes in the General Ledger app enables the user to generate various types of statements of changes such as statements of changes on equity or provisions/accruals.

The app allows you to apply filters based on the following fields:

• Company Code
• Ledger
• Fiscal Year
• Type of Statement of Changes
• Profit Center
• Segment

The accounts displayed in the report rows are determined by the semantic tags associated with the type of statement of changes. The report columns represent:

• The opening balance based on the transaction type carried forward
• The transaction type balances according to the setup and in the defined sequence.
• The unallocated balance: The sum from entries posted with or without a transaction type not shown in the type of statement of changes.
• The overall account balance

The app allows you to drill down to the account line items from a report cell by navigating to other apps, such as Display Line Items in General Ledger. It is also possible to further drill down to other entities like profit center or segment by selecting Drilldown. Then, choose Add Drilldown to incorporate the field you wish to drill down further into.