Active Ledger is flexible to accommodate "swinging accounts," which allows accounts to dynamically move between classifications, such as from Liabilities to Assets, based on their balances. Here's a step-by-step guide to using this feature:
Steps to Swing Accounts in Active Ledger:
Allocate Accounts: Begin by assigning the relevant accounts you wish to swing to a classification in the Accounts screen. For example, place them under Liabilities.
Group Accounts Under a Header(optional): Use the Quick Group option to group any accounts that need to swing under a header account. Note that if accounts are grouped under a header, the swinging option will only be visible at a header level instead of the child account level.
Enable Swinging on the Account: While in the Accounts screen, edit the header account or the child account and enable the swinging option. (Refer to the accompanying video for detailed instructions on this step.)
Set Balances for Child Accounts: Ensure the child accounts have balances that trigger the swing. For example, if a liability account has a debit balance, it will swing to Assets. Conversely, if an asset account has a negative or credit balance, it will swing to Liabilities.
Post a Journal(optional): You can create a journal entry to achieve the above as well if the balance from the source does not qualify to swing.
Create a Report Pack: Create a New Special Purpose Financial Report and ensure a Balance Sheet page was added and expand all header accounts so that the swinging accounts are visible.
Generate the Report: Once the report is generated, you should observe that the accounts have swung accordingly. For example, an account may move from Other Liabilities to Other Assets.
Honouring Swing Configuration: While the swung accounts will not appear in the report configuration screen (they only show in the generated report), any configuration selections made to the original account in the report configuration screen will be honored by the swung account when the report is generated. For example, if you check the note button or assign the original account to a disclosure, the swung account will follow and honor the disclosure or note settings of the original account.
For a detailed demonstration, please watch the video linked below, which walks through these steps in action.