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Notes on Consolidating Average Balances

There are some special considerations, discussed below, that you should be aware of when consolidating sets of books that have average balance processing enabled in General Ledger.

Linked Versus Non-linked Average Balances

In a typical set of books where average balance processing is enabled, standard and average balances are linked, since the average balances are derived from the standard balances. To enforce this linkage, General Ledger prevents you from creating journal entries that directly manipulate average balances. However, to view and report on consolidated average balances, you need to do exactly what General Ledger prevents you from doing.

Therefore, you need a way to break the linkage so you can create eliminating entries that change your average balances. You do this by defining your parent as a Consolidation Set of Books. In a consolidation set of books you can still view and report on average balances, but the links between standard and average balances are not enforced. As a result, you can create and post eliminating entries directly against your average balances.

See: Set of Books Average Balance Options

A consolidation set of books is used only for the balances consolidation method. To use the transactions method, which consolidates actual journal detail from a subsidiary set of books, you should use a non-consolidation set of books (with average balance processing enabled) as your parent. When you post consolidating journal entries in this parent set of books, General Ledger will calculate average balances automatically, and will enforce the link between standard and average balances.

Consolidation Journal Entries

When you consolidate average balances into a consolidation set of books, General Ledger creates separate consolidation journal entries for standard and average balances, with the following properties:

 
  		Standard Balance
Consolidation Journal Entry 		Average Balance
Consolidation Journal Entry
Journal Source: Consolidation Average Consolidation
Effective Date: Period First day of the period
Updates when
posted: 		Standard balances in table
GL_BALANCES 		Average balances in table
GL_DAILY_BALANCES
Table 1 - 8. (Page 1 of 1) Consolidation Journal Entries

Consolidating QATD and YATD Balances

Quarter average-to-date balances are always consolidated into the first period of a quarter. Year average-to-date balances are always consolidated into the first period of a year. Balances roll forward through the entire quarter or year, so every day in the quarter or year will show the same average balances.

Usage Types, Amount Types, Dates, and Periods

You can choose to consolidate standard balances only, average balances only, or both standard & average balances. These three options are referred to as the Usage type. The Usage type you select will also affect amount types, dates, and periods, as noted in the table below:

 
  		Standard
Usage Type 		Average
Usage Type 		Standard & Average
Usage Type
Amount
Type 		PTD, QTD, YTD,
PJTD, EOD 		PATD, QATD, YATD
  		PTD/PATD,
QTD/QATD,
YTD/YATD,
EOD/PATD
Date
  		Disabled unless
amount type is EOD,
then date is closest
business day in the
subsidiary Period. 		Closest business day
in the subsidiary
Period. 		Closest business day
in the subsidiary
Period.
Period
  		Standard Period can
be any open or future
enterable period in
parent set of books.
Average Period is
disabled. 		Standard Period is
disabled.
Average Period
depends on the
amount type:
PATD -- any open or
future enterable
period in parent
set of books.
QATD -- first non-
adjusting period of
a quarter in parent
set of books. Must
be open or future
enterable.
YATD -- first non-
adjusting period of
a year in parent set
of books. Must be
open or future
enterable. 		Standard Period can
be any open or future
enterable period in
parent set of books.
Average Period is
display only, must be
open or future
enterable, and
depends on the
amount type:
PTD/PATD -- same
as the Standard
Period.
QTD/QATD -- the
first non-adjusting
period of the quarter
containing the
Standard Period.
YTD/YATD -- the
first non-adjusting
period of the year
containing the
Standard Period.
Table 1 - 9. (Page 1 of 1) Consolidating Average Balances

Note: Consolidation uses the standard balances for the subsidiary Period specified on the Transfer Consolidation Data window. Consolidation uses average balances for the specified subsidiary Date.

Standard balances are consolidated into the parent set of books in the Standard Period specified on the Transfer Consolidation Data window. Average balances are consolidated into the specified Average Period.

Note also that EOD balances are stored as standard balances within a consolidation set of books, rather than as average balances.

See Also

CENTRA Overview

Global Consolidation System

Defining Sets of Books

Defining Consolidations

Consolidating Sets of Books

Overview of Average Balance Processing

Overview of Flexfield Value Security

Defining Value Sets

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