Creating average daily balance

To allocate interest in Custodial Account Management, you must set up the average daily balance function in your finance enterprise group.

Average daily balance is the average balance of the closing account or cost center balances calculated for each day in a period. Average balance processing is important for financial institutions to generate their average balance sheets with the standard balance sheets required by many regulatory agencies. When average daily balance is enabled, you can run the average daily balance calculation and view average daily balances.

  1. Sign in as Application Administrator.
  2. Select Financials > Global Ledger > Setup > Finance Enterprise Group > Maintenance.
  3. Open the Finance Enterprise Group record.
  4. Select the Options tab, and specify this information:
    ADB Selection
    Select Account And One Dimension.
    ADB Dimension 1
    Select Finance Dimension 10.
  5. Click Save.
  6. Click the Accounting entity tab and open the accounting entity record.
  7. Select the Average Daily Balance check box.
  8. Click Save.
  9. Click the Reporting Basis tab and open the reporting basis record.
  10. Select the Average Daily Balance check box.
  11. Click Save.