Loading Balance Accumulators

Before the system recalculates elements during retro, it loads balances to produce the correct value for the balance accumulators. The rule used to load balances varies depending on whether you are using forwarding or corrective retro.

If you're using forwarding retro, the system loads the balance for the element that is being recalculated from the previous period, V1R1.

Using Example 1, presented earlier (see Calculating Retro Deltas and Processing Adjustments):

• Period 1 (V1R1): The system loads a balance of 0 for E1 (this is the first period, and E1 has not yet been calculated).

• Period 2 (V1R1): The system loads the YTD balance of E1 (10) from period 1 (V1R1).

• Period 3 (V1R1): The system loads the YTD value of E1 (40) from the period 2 (V1R1).

If your method is corrective, the system loads the balance for the element from the calculation with the highest version number in the previous period.

Using Example 2, presented earlier (see Calculating Retro Deltas and Processing Adjustments):

• Period 1 (V1R1): The system loads a balance of 0 for E1 (this is the first period, and E1 has not yet been calculated).

• Period 2 (V1R1): The system loads the YTD balance for E1 (20) from the calculation with the highest version number in period 1 (V2R1).

• Period 2 (V2R1): The system loads the YTD balance for E1 (30) from the calculation with the highest version number in period 1 (V3R1).

• Period 3 (V1R1): The system loads the YTD balance for E1 (60) from the calculation with the highest version number in period 2 (V2R1).