Materiality thresholds

Materiality thresholds determine which transactions are flagged during General Ledger (GL) Scrutiny and when Zato auto-generates Goods and Services Tax (GST) journals. The screen has two side-by-side sections: GL Codes Materiality and GST-Specific Materiality. Use the Jobs selector at the top right to apply thresholds to a specific job or to all jobs by default.

GL Codes Materiality Thresholds

• Transactional Threshold: Flags any single transaction over the chosen value. Options: $50, $100, $500, or Custom.
• Aggregate Threshold: Flags an account where cumulative transactions exceed the value. Options: $100, $200, $1,000, or Custom.
• High Value Transactions: Highlights unusually large entries. Options: $5,000, $50,000, $100,000, or Custom.

GST-Specific Materiality Thresholds

• GST Transactional Threshold: Looks at the GST adjustment for an individual entry. Options: $10, $20, $50, or Custom.
• GST Aggregate Variance (Per GST Period): Combined value of all GST adjustments in a period. Options: $50, $100, $200, or Custom.
• GST High-Variance Flags (for unusual spikes): Options: $500, $1,000, $2,000, or Custom.

GST journal logic

Example using a $20 transaction threshold and $100 aggregate threshold: GST adjustments under $20 are immaterial. If all small adjustments combined are under $100 for the period, no GST journal is generated. Zato auto-generates a GST journal if any single adjustment is $20 or more, or if the combined total reaches $100 or more.

How to access

Go to Firm Setup and click Materiality Thresholds.