How Initialization Period Works for Source and Target Ledgers with EMU Currency Relationship

This table provides an example of how the relationship between the intialization period selection and the Create Opening Balance Journals in Reporting Currency or Secondary Ledger process converts balances when both the source and target ledgers have EMU currencies.

Period Number	Period Status in Source Ledger	What Does the Process Convert?
1	Closed	N/A
2	Closed	N/A
3	Closed	N/A
4	Open	N/A
5	Open	Year-to-date balances
6	Open	Period-to-date balances
7	Open	Period-to-date balances
8	Open	Period-to-date balances
9	Future Enterable	N/A
10	Future Enterable	N/A
11	Future Enterable	N/A
12	Future Enterable	N/A
13	Future Enterable	N/A

In this example, the initialization period will be period 9 because it’s the first future enterable period.

Note: The period status in the source ledger should be future enterable or never opened at the time the process is submitted.

The conversion start period is period 5. The process will create initialization journals for each period starting from period 5 to period 8.

The initializing rates must be defined as daily rates using a rate type defined specifically for the balance initialization process. After they're defined, enter the corresponding rate type in the Balance Initialization section of the Reporting Currency or Specify Ledger Options page.

Note: You must manually post the initializing journals in your reporting currencies or secondary ledgers and it's recommended that you post them before opening the balance initialization period.

Posting the journals initializes the reporting account balances converted from the periods in your source ledger. When you later open the balance initialization period, the ending balances from the period prior to the initialization period roll forward to become the beginning reporting account balances for the first future balance initialization period. Once the initialization journal is created in the target ledger, then the balance initialization setup will be frozen for making any changes.

Caution: It’s strongly recommended that you don’t enter any journals in your new reporting currencies or secondary ledgers until the Create Opening Balance Journals in Reporting Currency or Secondary Ledger process has successfully completed.