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Overview of Journals for Group Financial Reporting

Updated: August 22, 2025

Updated over a month ago

GATHER Journals let you automate eliminations, post manual adjustments, and handle FX effects so your consolidated results are accurate and auditable.

Use this guide to understand:

  1. Where journals are created/managed

  2. What each journal type does

  3. How journals behave in Working Papers and consolidation


Where to Create & Manage

  1. Auto Journals tile - set up automated intercompany eliminations.

  2. Working Papers - add/edit period-specific manual adjustments in context.

  3. Journals tile - central hub to review, edit, deactivate, stop schedules, and audit history.

Summary: Core Journal Types

Manual Journal Sub-types & Behaviours

Rule of thumb: Recurring journals are available only for P&L journals (not Balance Sheet or Linked).


Auto FX Journals

  • Foreign exchange differences often arise in consolidation, particularly when translating local ledgers into the Group Reporting Currency. To address this, GATHER automatically generates Auto FX Journals, ensuring the consolidated financial statements remain consistent and balanced.


Auto FX 1 – Aligning Current Period Earnings

  • Its purpose is to keep Current Period Earnings consistent between the Profit & Loss Account and the Balance Sheet.

How it works:

  • Compares Current Period Earnings reported in the Aggregated P&L (translated at the average rate)

  • Against Current Period Earnings in Equity & Reserves in the Aggregated Balance Sheet (translated at the balance sheet date rate)

Any difference is adjusted through an Auto FX 1 journal, which:

  • Brings Balance Sheet Current Period Earnings in line with the P&L

  • Posts the offsetting entry to FX Differences in Reserves (1)

User control: Clicking the Auto FX 1 link lets you review the calculation details for transparency.


Auto FX 2 – Resolving Intercompany Currency Imbalances

  • Adjusts for FX mismatches on intercompany transactions when counterparties report in different local currencies.

Scenario Example:

  1. Transaction in local books:

    • GBP company raises an invoice for £1,000.

    • USD company books it as a bill at the spot rate of 1.3, recording $769 in its P&L.

  2. Consolidation to Group Currency (GBP):

    • The Group Reporting Currency is GBP.

    • USD costs are retranslated at the January average rate of 1.25$769 ÷ 1.25 = £961.

  3. Detected imbalance:

    • GBP company Sales = £1,000

    • USD company Costs = £961

    • Difference = £39

  4. Auto FX 2 resolution:

    • GATHER posts an Auto FX 2 journal:

      • Removes the £39 mismatch from Profit After Tax.

      • Reclassifies it to FX Differences (2):

        • Below the PAT line in the Consolidated P&L.

        • Into FX Differences in Reserves (2) in the Consolidated Balance Sheet.

Importance of Auto FX:

  • Auto FX 1 keeps the Profit & Loss and Balance Sheet aligned so earnings figures stay consistent.

  • Auto FX 2 fixes mismatches that come up when intercompany transactions involve different currencies.

  • Together, they prevent FX differences from distorting the consolidated results and keep a clear audit trail.


Need help? Visit gather.nexus, click the chat icon in the bottom-right corner, or email us at [email protected] for assistance.

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