Configuring Balance Carryforward

At ABC Corporation, you're preparing for next year. In this context, the main area of configuration is group reporting balance carryforward (BCF).

The behavior of BCF is controlled primarily by the FS Item Type property:

• AST Asset item: Carried forward to the same FS item as in the previous year (unless specified otherwise).

• LEQ Liability/equity item: Carried forward to the same FS item as in the previous year (unless specified otherwise).

• INC/EXP Profit and Loss (P&L) statement item: Not carried forward.

• STAT / REPT: Not carried forward by default. You can configure the system to carry forward STAT / REPT items if needed.

All field values in the new year remain the same with the following exceptions:

• FS item numbers remain the same unless specified otherwise in configuration.

• The document number is the BCF document number.

• The main transaction type is 900 (opening balance).

• The fiscal year is the new year.

• Accounts can come over as they're in the prior-year data.

• The posting period is 000.

In the following image, there are six FS items:

1. $17000: This is a statistical FS item that will be carried forward (related to Activity-Based Consolidation of Investments).
2. $19000: This is a statistical FS item that will be carried forward (related to Activity-Based Consolidation of Investments).
3. 317000: Current-Year Retained Earnings controlling share is carried forward to Prior-Year Retained Earnings 316000.
4. 319000: Net Income Clearing values are carried forward for all subitems (related to Activity-Based Consolidation of Investments).
5. 321150: Current-Year Retained Earnings non-controlling share is carried forward to Prior-Year Retained Earnings non-controlling 321100.
6. S00001: The statistical FS item for Group Shares will be carried forward using the same FS item.

At ABC Corporation, the 2022 results include restatement values in extension version X00. When you run balance carryforward in 2023, you want the restatement values in extension version X00 to update the U00 standard version. However, you want to update a different restatement subitem in 2023, not the opening balance subitem.

For example, in the following Restatement Scenario image, the standard version contains a total value of 150 in 2022. When balance carryforward is run, the opening balance subitem is 150. In 2022, there’s also a restatement amount of 20 in the extension version. When balance carryforward is run, the restatement subitem is 20 in the standard version. As a result, the restatement amount of 20 is included in the 2023 values in the standard version.

In our use case, we’ve already adjusted the 012.2022 results in the X00 extension version:

Steps to Carry Forward Restatement Values

Step 1: Define the Deviating Carryforward Subitem

In the Define Subitem Categories and Subitems activity, the Deviating Carryforward Subitem for subitem 915, is 907.

Step 2: Map Source and Target Version

In the Define Balance Carryforward Settings activity, the Source Version is X00 and the Destination Version is U00.

Note

You need to include the year in which balance carryforward is run in the table. In this example, it’s 2023.

Step 3: Report on the Results

After you run the Balance Carryforward task, you can view a report to confirm the results.

Note

Extension versions store delta amounts as compared to the standard version. However, in reports, the values for extension versions also include the standard version amounts. In other words, the cumulative values are displayed.

In the following image, you can see the resulting values for the 111100 FS item:

1. Standard Version U00 for 012.2022: The original values are displayed for variation subitem 915.
2. Extension Version X00 for 012.2022: the net values are displayed for variation subitem 915.
3. Standard Version U00 for 000.2023:
   • The original values are displayed for opening balance subitem 900.
   • The delta values are displayed for restatement subitem 907.
4. Extension Version X00 for 000.2023:
   • The original values are displayed for opening balance subitem 900 (inherited from version U00).
   • The delta values are displayed for restatement subitem 907 (inherited from version U00).