Overview of Balance Initialization Process

You run the Create Opening Balance Journals in Reporting Currency or Secondary Ledger process to initialize account balances in your target ledger that was created for a source ledger already in operation.

The balances are initialized based on all the balances in the source ledger up to the period that precedes the initialization period. You can control the conversion rates used to convert balances to comply with appropriate accounting standards, including the specific currency conversion and rounding requirements defined by the European Commission for the Euro and the Economic and Monetary Union (EMU) currencies.

The process converts account balances to the target ledger up to the period that’s immediately before the initial period specified in the ledger options setup. You can select to convert a specified range of accounts in the source ledger. If you don’t provide a range of accounts, then all account balances are converted.