How ADB Determines Calculation Method

By default, the ADB Calculation process uses the ad hoc method to calculate average balances.

In order to use the incremental calculation, you must define the ADB definitions and period type on the General Ledger Definition − Incremental Calculation Method page. Here's how period types relate to the ADB definition on that page:

ADB Definition	Period Type
Actuals MTD Averages	MTD (month to date)
Actuals QTD Averages	QTD (quarter to date)
Actuals YTD Averages	YTD (year to date)

In the sections that follow, there are examples of how these period types are used in calculations.