Using Multi-Book Accounting

An accounting book can be one of two types:

  • Primary Book: Transactions complying with the main set of Accounting Standards are posted to the Primary Book by default. Invoices, credit notes, and cash entries are automatically assigned to the primary book. Journals are assigned to the primary book by default, but book specific journals can also be created and assigned to any of the existing books. Transactions generated by other sources (for example Cash Matching Journals, Intercompany Journals, Allocations, Archiving, Billing Documents or Direct to Transactions API and other APIs for document creation) will be automatically assigned to the primary book. If you are using Multi-Book Accounting, you must set up one book as primary. There can only be one primary book in the org.
  • Adjustment Book: Used for book-specific adjustments, necessary to comply with different Accounting Standards. Manual journals are assigned to specific books, for example the primary book or any of the adjustment books.

Accounting Book Guidelines

Reporting under different Accounting Standards doesn't mean that every transaction gets a different accounting treatment under different accounting standards. In fact, only a small percentage of transactions need to be treated differently. Most transactions you post will be compliant with all the Accounting Standards, so there's no need to process the same transaction multiple times to be assigned to the different accounting books.

With Multi-Book Accounting, all transactions based on the main set of Accounting Standards for the org (for example, US GAAP) are posted to the primary book. Necessary adjustments are then posted to the relevant adjustment books, which combined with the main transactions, results in the correct treatment under a different set of Accounting Standards (for example, IFRS). This way, transactions are not duplicated and posted to every book.

Setting up more than one accounting books enables you to follow this approach by having one primary book and as many adjustment books as you require.

Accounting books are set up at org level and are not company specific.

Once Multi-Book Accounting is enabled, all transactions and Reporting Balances are assigned to the relevant accounting book. The Accounting Book field can then be used in filters when setting up your reports. This enables you to maintain different sets of reports for the different Accounting Standards you need to comply with.