How Initialization Period Affects Balance Initialization Process

Determining the initialization period is a business decision that you must make for your organization.

Consider choosing an initialization period that begins on the first day of your fiscal year. All the balance types (daily, period-to-date, quarter-to-date, and year-to-date) are fully synchronized on the first day of a fiscal year. Also, you won't need to work with partial year balances in your reporting currencies or secondary ledgers.

Here are more considerations.

• If you're not initializing from the beginning of the year, it’s recommended that your initialization period is at least the first period of a quarter. This ensures that the quarter-to-date balances for the quarter in which you enable reporting currencies or secondary ledgers are correct.
• If you use average balance processing and need to report average balances in your reporting currencies or secondary ledgers, choose an initialization period that begins on the first day of a fiscal year. This ensures that your period average-to-date, quarter average-to-date, and year average-to-date reporting currency or secondary ledger balances will be correct.
• The initialization period must be the first future enterable period or, if you don’t allow future enterable periods, the first never opened period in the source ledger at the time you run the Create Opening Balance Journals in Reporting Currency or Secondary Ledger process.
• The start date for the first future enterable or never open period in the source ledger must match the start date of the initialization period of the target ledger.