Understanding Beginning Balance Revision

You use the Work With Subsidiary Balances Revision program (P75C902) to revise the beginning balance for the subsidiary items attached to an account. The system updates the beginning balances in the F75C902 table. You run this program only once after implementing the software. You need to run this program to ensure that the beginning balances are accurate for each item because the Update Subsidiary Balances File report calculates the balances assuming that the beginning balance for each item is zero. An example to explain this is given below:

This table lists the amounts in different periods with a beginning balance of 1000:

Period	Beginning Balance	1	2	3	4	5	6	7	8	9	10	11	12	Ending Balance
	1000	50		100	75		200							1425

However, if you implement the system in June, which is period 6, the Update Subsidiary Balances File report updates the table in this way:

Period	Beginning Balance	1	2	3	4	5	6	7	8	9	10	11	12	Ending Balance
							200							200

The system has considered the amounts for the periods before the 6th period as zero. Therefore, to record the actual amounts for all periods, you must run the Work With Subsidiary Balances Revision program. When you run this program, you update the beginning balance to a total of the previous year's beginning balance and the total of amounts of all periods till the period of implementation. This example is represented below:

Period	Beginning Balance	1	2	3	4	5	6	7	8	9	10	11	12	Ending Balance
	1000+225 = 1225						200							1425

When you enter the beginning balance, the system automatically updates the ending balance.

After you run this program and update the beginning balances once, the next time onwards the Update Subsidiary Balances File report automatically takes the revised balances as the beginning balances.