Backdated Transactions and Average Balances

When you post a backdated transaction, the application adjusts the end-of-day and aggregate balances of the affected accounts, as of the effective date and all subsequent dates.

The following example continues the general example and illustrates what happens when you post a backdated transaction.

Here are the end-of-day and aggregate balances from the example previously described in the Example of Average Balance Processing topic.

Day	Account A End-of-Day	Account A Aggregate	Account B End-of-Day	Account B Aggregate	Account C End-of-Day	Account C Aggregate
Day 1	1,000	1,000	(1,000)	(1,000)	0	0
Day 2	1,100	2,100	(1,000)	(2,000)	(100)	(100)
Day 3	1,100	3,200	(800)	(,2,800)	(300)	(400)

Here's the average balance for each account on Day 3.

Account	Calculation	Average Balance
Account A	3,200 / 3	1,066.66
Account B	(2,800) / 3	(933.33)
Account C	(400) / 3	(133.33)

Now assume that the following backdated transaction occurs on Day 3, with an effective date of Day 1.

Account	Debit	Credit
Account A	500
Account B		500

The effects of the backdated transaction are shown in the following table.

Day	Account A End-of-Day	Account A Aggregate	Account B End-of-Day	Account B Aggregate	Account C End-of-Day	Account C Aggregate
Day 1	1,500	1,500	(1,500)	(1,500)	0	0
Day 2	1,600	3,100	(1,500)	(3,000)	(100)	(100)
Day 3	1,600	4,700	(1,300)	(4,300)	(300)	(400)

Here's the average balance now for each account on Day 3.

Account	Calculation	Average Balance
Account A	4,700 / 3	1,566.66
Account B	(4,300) / 3	(1,433.33)
Account C	(400) / 3	(133.33)