Using Average Daily Balance

This appendix provides instructions for setting up the Average Daily Balance application. The Average Daily Balance (ADB) application is a module of the General Ledger application. The Average Daily Balance application provides a way to calculate average daily balances or cost of funds for any accounts.

ADB amounts are used to track balances for the current period, quarter-to-date, and year-to-date. You can also use daily financial statements to report the cost of funds on deposit or the yield for funds on loan.

These are some major features of the Average Daily Balance application:

• You can quickly define all accounts as ADB accounts or choose specific accounts in an accounting unit.

• You can easily adjust the effective date and recalculate ADB information when you need to change the transaction cutoff.

• You can inquire on current and historical ADB amounts.

• You can consolidate reporting of account balances at the General Ledger company level for the period, quarter-to-date, and year-to-date.

  Note: If your company uses zone balancing, then using average daily balance accounts might result in an out of balance condition within the zones. ADB uses one account for account balancing. If the balancing account is outside of a zone that has ADB accounts within it, then the zones will not balance.
  Note: The ADB application uses only base currency in reports and calculations.