\u00a31,000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nThe \u2018Sales Invoice Number\u2019 Dimension Tag is debited, giving it a balance of \u00a31,200. When the invoice is paid, the\u00a0\u2018Sales Invoice Number\u2019 Dimension Tag is credited leaving a zero balance. It is the zero balance that tells Sage Financials if an invoice has been paid. Similarly the ‘Customer’ Tag is debited when the invoice is raised, so the balance on this Tag shows the total the customer owes.<\/p>\n
But if you look at the Ledger Items posting for a Sales Invoice you will see the Customer Tag is linked to both the Debit AND the Credit postings:<\/p>\n
![\"\"](\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/04\/Customer-Tag-Postings.jpg\")
<\/p>\n
You would think this would result in a zero net effect. So how does that work?<\/p>\n
In the Customer Dimension is a field \u2018Balance Account\u2019 this used to be visible, but now you can only see it if you [Edit] the Dimension:<\/p>\n
![\"\"](\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/04\/Balance-Account.jpg\")
<\/p>\n
If you leave that blank, all postings, Debit & Credit are posted to the Dimension Tag. An example of this is the Project Dimension.<\/p>\n
Old Style Balance Account<\/h3>\n
In earlier versions of Sage Financials the \u2018Balance Account\u2019 for the \u2018Sales Invoice Number\u2019 and \u2018Customer\u2019 Dimensions were set to \u2018Debtor Control Account\u2019. This meant only postings to the Ledger Account \u2018Debtor Control Account\u2019 were posted to the Tag Balance so in the example above the\u00a0Customer Tag is Debited \u00a31,200 and the Credits are ignored.<\/p>\n
This worked fine for Dimensions like \u2018Sales Invoice Number\u2019 or \u2018Customer\u2019. When the sales invoice is paid we have the following postings.<\/p>\n
![\"\"](\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/04\/CustomerReceipt.jpg\")
<\/p>\n
Because the \u2018Balance Account\u2019 (Debtor Control Account) is credited so the linked ‘Customer’ and ‘Sales Invoice Number’ Tags are also credited, giving a zero balance on the Invoice Number.<\/p>\n
Bank Accounts however are a bit more complicated. In the example above the Ledger Account ‘1200 Bank Current Account’ is debited and this should also debit the ‘HSBC’ Bank Tag. But if you have other bank accounts, for example a USD bank account “HSBC Dollar Account”, you might post to ‘1205 USD Bank Account’ instead of ‘1200 Bank Current Account’. The ‘Balance Account’ is set at the Dimension level, so both\u00a0“HSBC Dollar Account” and\u00a0“HSBC Bank”\u00a0 share the same\u00a0‘Balance Account’.<\/p>\n
The only solution was to leave the ‘Balance Account’ blank, so ALL postings where applied to the Tags.\u00a0You had to be really careful when using ‘Bank Account’ dimensions in the posting rules or you would mess up the Bank Balances.<\/p>\n
New Style Balance Account<\/h3>\n
To get around this problem Sage introduced the special Ledger Account ‘Control Balance Account’. How this works is it first looks at the Tag<\/strong><\/em> for\u00a0a\u00a0Tag Ledger Account of ‘LedgerAccount’ and if that is not setup, it looks the the Dimension for a\u00a0
![\"\"](\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/04\/Balance-AccountRed.jpg\")
<\/p>\n![\"\"](\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/04\/Dimension-Ledger-Account.jpg\")
<\/p>\n![\"\"](\"https:\/\/sagefinancialsknowhow.com\/wp-content\/uploads\/2019\/04\/Tag-Ledger-Account.jpg\")
<\/p>\n