Cross-Checking of Inflation Adjustments
When you have calculated the inflation on yournonmonetary items, you can cross-check the result by calculating the inflation on monetary items. The total balance of the nonmonetary accounts must be the same as that of the monetary accounts, since every nonmonetary transaction is reflected on a monetary account at some stage.
You have classified each G/L account as monetary or nonmonetary, by assigning each an inflation key in which you have selected or deselected Monetary acct (Monetary account).
The amount of inflation calculated must be the same. If not, you trace the source of the error and make the necessary corrections.