Posting Code Closing Classification

Among the various features of Advantage that use these classifications of posting codes to determine what actions to take with journal and ledger records are Annual Close and the Trial Balance report. Reports such as those in the Annual Consolidated Financial Reports (ACFR) can use these classifications to enable the selection of multiple posting codes with the specification of one or more classifications. This is a recommended approach when feasible because the introduction of new posting codes would not require a change to the report logic.

A set of values are delivered and others can be added. When adding new classifications, the code used should be one that begins with 80 or higher so that later releases do not provide a new baseline closing classification code with the same ID. Deleting codes is not recommended. If one is not to be used, then all of the posting codes should be disassociated. Changing settings on existing codes is also permitted. Keeping a record of any changes is a very good idea in case the baseline posting closing classifications have to be restored.

Fields on the Posting Code Closing Classification (PSCDCL) page are as follows, with common ones omitted:

Field Name

Field Description

Closing Classification Code

A unique identifier for each closing classification code. Delivered codes contain one or two numbers.

Real Posting Code

When the closing of a real account (a posting code with an account type restriction and an associated balance sheet account) occurs, the balance in that account is closed to this posting code. The posting code is a clearing code that is only used in closing and not used for recording normal business activity. The Real Posting Code should have the same Account Type, Cash Account, and Memo Account settings as all posting codes that belong to the closing classification that uses the Real Posting Code.

Fund Balance Posting Code

When the Close Fund Into Account field is set to Fund Balance for a fund on the Fund reference page all activity for posting codes with a closing classification that has a Closing Action of Close Out Nominal  will close to the Fund Balance Posting Code of that closing classification. 

Retained Earnings Posting Code

When the Close Fund Into Account field is set to Retained Earnings for a fund on the Fund reference page, all activity for posting codes with a closing classification that has a Closing Action of Close Out Nominal will close to the Fund Balance Posting Code of that closing classification.

Agency Due To Posting Code

When the Close Fund Into Account field is set to Agency Due for a fund on the Fund reference page, all activity for posting codes with a closing classification that has a Closing Action of Close Out Nominal will close to the Fund Balance Posting Code of that closing classification.

Offset Posting Code

When activity is closed out for a nominal account or to the Net Asset account, there has to be an offsetting entry to balance out the closing in the old fiscal year. When rolling forward into a new year under a new account, there has to be a posting code for use in the new year. The Offset Posting Code value serves all of these purposes.

Closing Action

There are four different closing actions that serve four very distinct annual close results.

  • Leave Balance In Old Accounting Fiscal Year Not all accounts should be rolled forward into the new year.  Posting codes for those accounts will belong to one or more closing classifications that have this Closing Action.  There is only one such classification delivered with the application and it contains posting codes such as the Memo Encumbrances and Reserve for Memo Encumbrances used when ordering items for a warehouse on the consumption accounting method. 

When such activity is found in the input ledger for Annual Close, the program will ignore those records. Such accounts often are just for reporting purposes in the year recorded and have no accounting impact in any financial statements. When this action is true, none of the posting code fields should be completed.

  • Roll Forward - Most real accounts, those commonly referred to as balance sheet accounts, should roll forward into the new year. Posting codes for those accounts will belong to one or more closing classifications that have this Closing Action. There are five of these classifications delivered: Asset, Liability, Equity, Contra Asset, and Cash.  

When such activity is found in the input ledger for Annual Close, the program will close the balance out to the Real Posting Code in accounting period 99 of the old year and record the original balance to the original account in accounting period 0 of the new year.  All of the Chart-of-Account information is the same between both lines.

  • Roll Forward into New Account - Certain real accounts, liability, and accounts tracked at a revenue budget level of detail, should roll forward into the new year but under a different posting code, and a reduced level of chart-of-account detail.  As delivered, posting codes for Billed Unearned Revenue (R101), Collected Unearned Revenue (R102), and Unearned Revenue for Prepayment (R105) are three examples of accounts that should use this closing action.  The closing action is not restricted to just liability accounts should the need arise to roll another type of account in the same manner.

When such activity is found in the input ledger for Annual Close, the program will close the balance out to the Real Posting Code in accounting period 99 of the old year and record the original balance to Offset Posting Code in accounting period 0 of the new year.  Chart-of-Account information on both lines is at the level of detail available in the ledger used for Annual Close, which will be greatly reduced from what level was recorded on the original liability.

  • Close To Net Assets Certain accounts are not closed directly into Fund Balance, Retained Earnings, or Agency Due To because the activity needs to be tracked differently for full accrual verses modified accrual reports.  When this is the case, such a posting code will belong to a classification with this Closing Action and a value in the Real Posting Code and Offset Posting Code fields.  There is only one such classification delivered in the application and it contains posting codes such as the expenditure offset used to record the amount of expenditures for a pre-paid asset that has not yet been amortized.

When such activity is found in the input ledger for Annual Close, the program will close out the balance to the Real Posting Code and offset it with an entry to the Offset Posting Code. The Real Posting code will infer a new balance sheet account (according to the default account setup for that posting code) to be used with the other COA of the selected record in the old year. The Offset Posting code will not infer any new COA and just use that of the selected account in the old year.  All of this activity occurs in accounting period 99 of the old year. The Real Posting Code will fall into a classification that has a roll action of Roll Forward.  Thus an account with the Close To Net Assets action will result in 4 annual closing entries.

  • Close Out Nominal - Certain accounts are closed directly into Fund Balance, Retained Earnings, or Agency Due To based on the fund code of the selected record in the old year.  When this is the case, such a posting code will belong to a classification with this Closing Action and a value in each of the Fund Balance, Retained Earnings, and Agency Due To Posting Code fields and the Offset Posting Code field.  There are many such classifications delivered in the application representing many 'nominal' accounts.  That term alone is used to describe an account that closed to an equity (Fund Balance or Retained Earnings) or liability (Agency Due To) account.  Examples include posting codes for Accrued.

Expenditures and Collected Earned Revenues - When such activity is found in the input ledger for Annual Close, the program will close out the balance to the proper posting code (Fund Balance or Retained Earnings or Agency Due To) and offset it with an entry to the Offset Posting Code.  Both entries will use the original COA of the input records and be recorded in accounting period 99 of the old year.  The Fund Balance, Retained Earnings, or Agency Due To Posting Code will fall into a classification that has a roll action of Roll Forward.  Thus an account with the Close Out Nominal action will result in 4 annual closing entries.