Access Ledger Swinging account logic applies automatically to adjust certain account types based on their debit or credit balance, ensuring accurate financial reporting.
Suppose an asset account such as Cash and Cash Equivalents, has a credit balance. Access Ledger moves it to the appropriate liability category, displaying it as a liability with a positive value. This adjustment applies to various account categories, including:
Cash and Cash Equivalents / Credit Cards and Overdrafts.
Current Tax Assets / Current Tax Liabilities.
GST Payable / Current Tax Assets.
Related Party Loans (to/from members).
This logic ensures that financial statements accurately reflect the nature of each account based on its balance. If needed, users can review or modify these automatic adjustments in the journals section.
When generating a report, assets and liabilities are categorised automatically based on their value. If an asset with swinging properties is in credit, Access Ledger will display it as a liability with a positive value.