Using average daily balance and cost of funds processing

Note: Historical calculations for average daily balance and cost of funds for the month, quarter, and year-to-date for each day are saved each time you run Transaction Posting (AD190).

The Average Daily Balance programs calculate the average daily balance and, optionally, the cost of funds (or yield) for ADB accounts. You can use the effective date and account range to limit the transactions used to calculate the balances.

After average daily balances have been calculated during transaction posting, the system can calculate the cost of funds on deposit or the yield for funds on loan for the ADB company. The Cost of Funds (AD191) program uses the average daily balances calculated in Transaction Posting (AD190). Only ADB accounts with an interest account or total name specified in Average Daily Balance Account Maintenance (AD20.1) are included when the system calculates the cost of funds.

Cost of funds calculations are only run for ADB accounts with a defined interest account or total name.

Procedure flow: processing average daily balance

Using average daily balance processing

Process General Ledger transactions for the period (post journal entries and verify the trial balance). Only posted or quick-posted transactions are used when running Transaction Posting (AD190).

Note: For ADB companies, you must run Transaction Posting (AD190) on the last day of a period before closing the period.
Run Transaction Posting (AD190) in report mode to calculate average daily balance account balances. Use the following guidelines to enter field values:

Company, Period, and Fiscal Year

Select the company number, period, and fiscal year. The current period and year is the default.

As of Effective Date

Specify a date to use the effective date override option. If this field is left blank, then the effective date from Average Daily Balance Company Setup (AD10.1) is set as default.

Note: You can change the effective date of transaction using Define Journal (GL40.2).

Accounts

Select a beginning and ending account and subaccount number. If this field is left blank, then all accounts will be selected.

Note: You can perform partial processing by limiting the account number range.

Update

Select Yes to update average daily balance account balances. If you leave the Update field blank, then the default setting is No.

Print Report

Select Yes for a printed report of the account balances.

Note: You can run AD190 repeatedly to recalculate average daily balances; however, once a period is closed in the General Ledger application, you can calculate Average Daily Balances using historical data. If you backpost an entry, then you must then rerun AD190 for the end of the period. You can also select to rerun AD190 for each day after the backposted transaction to keep your daily reporting accurate.
Verify the calculations and run Transaction Posting (AD190) in update mode.

Note: You must run AD190 in update mode prior to running Cost of Funds (AD191).
If required by your company, run Cost of Funds (AD191) in report mode. Use these guidelines to specify the field values:

Company, Period, and Fiscal Year

Select the company number, period, and fiscal year. The current period and year is the default.

Update

Select Yes to update cost of funds balances. If you leave the Update field blank, then the default setting is No.
If required by your company, verify the calculations and run Cost of Funds (AD191) in update mode.

Related reports and inquiries


To	Use
Display a summary of the transactions posted by posting account as of the selected effective date	Average Daily Balance Company Analysis (AD90.1)
Display a wide range of account information based on organization, account, period and calculation criteria you define	Account Analysis (AD95.1)