Calculation Methods

You specify a calculation method for each range of accounts. The system uses the calculation method to determine which formula to use when it calculates currency conversions. The calculation methods are:

• 1 (cumulative balance method).

  Use for balance calculations. This method uses the year-to-date balance amount.

• 0 (net period balance).

  Use for period calculations. This method uses net period activity amount.

These examples show the results of calculation methods 1 and 0.