General Ledger Sort for Balancing

This document provides technical documentation for the “Sort for Balancing” option within the General Ledger Account History in the Flex system. This feature is designed to assist users with daily balancing for debit card processing and to accurately calculate the outstanding balance at the end of each day.

I. Overview

The “Sort for Balancing” option addresses a specific challenge in debit card processing where multiple General Ledger (GL) entries for a single settlement date may be posted across different effective dates. This can lead to a non-zero balance at the end of the day in the default GL Account History view.

II. Purpose

The primary purpose of the “Sort for Balancing” option is to:

• Facilitate Daily Balancing: Provide a clear and accurate view of GL entries related to debit card processing.
• Calculate Actual Outstanding Balance: Determine the true outstanding balance for debit card settlements at the close of each day.

III. Default GL Account History Behavior

By default, entries in the GL Account History table are sorted by the Effective Date.

• Example Default View:
  • Account History Account: 80510 (CLEARING VISA DEBIT CARDS)
  • Dates: Last 3 months
  • Columns:
    • Batch
    • Description
    • Teller
    • Open Period
    • Effective Date
    • Actual Date
    • Debit
    • Credit
    • Balance
    • Status
• Challenge: Due to debit card processing settlements often having entries posted on different effective dates, the daily ending balance in the default view may not reflect a zero balance, unlike other daily processing GLs. The actual settlement date is typically embedded within the transaction description.

IV. “Sort for Balancing” Functionality

The “Sort for Balancing” option modifies the display and calculation of GL Account History entries to provide a more accurate daily balance for debit card transactions.

A. Sorting Logic

When “Sort for Balancing” is applied:

• The system utilizes both the date included in the description of the transaction and the effective date.
• Entries with the same description date are grouped together in the history.
• The ending balance is then recalculated based on these grouped entries, reflecting the actual outstanding balance for that specific settlement date.

B. Accessing “Sort for Balancing”

The “Sort for Balancing” option is accessible within the General Ledger Account History options.

• Navigation Path (Conceptual):
  1. Navigate to “General Ledger.”
  2. Select “Account History.”
  3. Within the Account History options, locate and select “Sort for Balancing.”

C. Impact on Displayed Data

• Grouped Entries: Transactions related to a specific debit card settlement (identified by the date in the description) will appear together.
• Recalculated Balance: The “Balance” column will reflect the running balance for the grouped transactions, ultimately showing the actual outstanding balance for that settlement date.
• Example “Sort for Balancing” View (Illustrative):
  • Account History Account: 80510 (CLEARING-VISA DEBIT CARDS)
  • Dates: Last 3 months
  • Columns:
    • Batch
    • Description
    • Teller
    • Open Period
    • Effective Date
    • Actual Date
    • Debit
    • Credit
    • Balance
    • Status
  • Key Difference: The “Balance” column will show a more meaningful daily balance, often reaching zero or the actual outstanding amount for a given settlement, as entries are grouped by their described settlement date rather than just their effective posting date.

V. Benefits for Users

• Improved Accuracy: Provides a more accurate representation of daily debit card settlement balances.
• Simplified Reconciliation: Streamlines the process of reconciling debit card transactions by grouping related entries.
• Enhanced Visibility: Offers better insight into the actual outstanding balance at the end of each day for debit card processing.