Accounting layers provide different ways of segregating transactions within a single GL account. The posting of transactions is controlled by associating daybook types with one of the three system-defined accounting layers: official, management, and transient.

Transient accounting layers enable temporary posting for review or analysis, before official posting and publication of accounts. When a daybook is associated with the transient layer, transactions are posted to this layer for temporary review. If the daybook is associated with the official layer, transactions are immediately posted to the general ledger.

Use management layers to provide different types of GAAP reports within one organization. For example, you can compile a set of local accounts for a French subsidiary of a US parent organization that comply with French GAAP standards. You can then compile US GAAP accounts for the parent company, and generate reports on the combination of the two sets. Then, review your subsidiary accounts, and create correction and adjustment transactions to make these accounts comply with the parent company GAAP standards.

Auditor adjustments are generally applied in the management layer. IFRS and US GAAP requirements are also implemented in management layers.

When transferring between layers, the daybooks must be of the same type. You can transfer only from the transient layer to the other layers. When the transaction is transferred, a new daybook and reference is created for it.

Accounting Layers shows a series of transactions that were posted to the transient layer in order to test a GL simulation scenario (what if postings). By running a set of GL reports and selecting the daybooks that contain the transient layer simulations and the relevant official layer postings, the user obtains Report Set 1.

The figure also shows a set of transactions posted to the management layer for auditor adjustments. By running a set of GL reports and selecting the daybooks that contain the management postings and the relevant official layer postings, the user obtains Report Set 2.

The For Approval postings contain a set of preliminary postings. When these postings are reviewed and approved by a manager, they can then be transferred to the official layer.