Journal Adjustments (998, 901, 902...) in ADB

Adjustment journals are those journals that have been marked as adjustments in the journal header record.

You have the option to post adjustment journal entries to the ADB ledgers using:

• Adjustment periods as defined for the ledger group (this prevents period-to-period reporting from being distorted by adjustments); or,

• Regular accounting periods that are derived from the ADB calendar.

You select this option on the Ledgers For A Unit - Journal Post Options page. Deselect (or leave selected) the Post Adjustment Periods to ADB check box.

See Application Fundamentals: Ledgers For A Unit - Journal Post Options Page.

Posting Adjustment Journals to ADB Ledgers Using Adjustment Periods (Default)

ADB calculations support all adjustment periods.

For the most part, you will probably not want to include adjustment periods in ADB calculations, with the possible exception of year-to-date daily averages.

If you do choose to include journal adjustments, you have two points in the period that you can include the adjustments. You can include them at the beginning of the period, in which case the adjustment period (period 998, 901, 902) is considered the first day of the period, or you can include them at the end of the period, in which case the adjustment period is considered the last day of the period. For ADB definitions using the incremental calculation method, the process calculates the journal adjustments as of the last day of the period, regardless of the option selected. However, you can choose to run the ADB process using the ad hoc method on the ADB request if you want to include the adjustments as of the first day of the period. It is recommended that you use the ad hoc calculation method when including adjustment journals in the average balances. The impact of the journal adjustment period on average balances is illustrated in the following table.

This example assumes that Account 100000 has a zero beginning balance. During the course of the month, only two transactions were posted: one on December 1 and one on December 31 :

Account	Journal Date	Period	Day Within Period	Transaction Amount
100000	December 1, 2009	12	1	100
100000	December 31, 2009	12	31	150
100000	December 31, 2009	998		300 < − adjusting entry

The following table shows the results of not including period 998, including it at the beginning of the period or including it at the end of the period:

Period 998 Option	ADB Calculation	Result
No Adjustment Period	ADB = ( [100 * 31] + [150 * 1] ) / 31 [Aggregate of the December 1 amount] plus [aggregate of December 31 amount] divided by the number of days.	104.84
As First Day of Report Period	ADB = ( [400 * 31] + [150 * 1] ) / 31	404.84
As Last Day of Report Period	ADB = ( [100 * 31] + [450 * 1]) / 31	114.52

Posting Adjustment Journals to ADB Ledgers Using Regular Accounting Periods

If you have deselected the Post Adjustment Periods to ADB check box on the Ledgers For A Unit – Journal Post Options page, the adjusting journals are posted to regular accounting periods, and therefore, are included in the ADB calculations.