Hi Habeeb,
This is normally based on an IFRS Consolidation Reporting requirement stating that the Balance Sheet accounts having balances contrary to their original nature(Asset accounts=positive balance, Liability = negative ) have to now be represented correctly. For instance if the Account Receivable account shows a credit or negative balance, the same has to be classified under Liabilities instead of Assets and vice versa.
In my opinion and as far as my knowledge is concerned, BPC will not be able to handle this requirement directly and any workarounds are going to be messy if you take in all scenarios. I will be definitely happy to be proved wrong in this case!
As Arnold explained above, you can definitely push the balance to specially created accounts on opposite sides of the balance sheet through conversion files while the data is getting loaded. But this might be tricky and messy later on because of the following:
1. After data upload, any business rules/script logic/journal adjustments or reversals tend to make a positive balance into negative balance or vice versa.
2. The unposting of a journal entry - If for some reason, the journal you posted under step 1 needs to be unposted, your script would need to restore the balance back to the original account.
3. Reconciliation of data will be a headache if it is handled through script logic automatically even though you might use a separate auditID.
The clean and best approach would be to perform a one time reclassification of the balances for these accounts to the assets/liabilities side under a separate audit trail using journal template. This will also handle point 2 above and can also be shown as a post consolidation adjustment. I am sure that once this has been explained properly, this solution would be appreciated and adopted.
Will be happy to know if anyone has a better solution than the above.
Regards
Shiraj Jahafar.