Optimized Maintenance for Account Balances

Maintain account balances for preexisting income statement accounts in a new fiscal year from the first accounting period with posted activity. This improves efficiency and performance in managing journal postings, opening accounting periods, and running translations.

The business benefit of this solution is it provides a more efficient and performant management of accounting operations that impact account balances, including posting, open period, and translation. Optimizing balance maintenance for income statement accounts aids in improving product performance and efficiency with General Ledger. It curtails unnecessary growth in the number of records with the General Ledger balances tables and balances cubes to avoid the negative impact on all product features that work with this data. 

Steps to enable and configure

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Financials

Tips and considerations

  • Once this feature opt in is enabled, this is a permanent setting and cannot be reverted.  The feature will be in effect for all users of the General Ledger module.
  • When this feature is enabled, the project-to-date (PJTD) balances of income statement accounts may no longer be accurate and should not be relied on.  PJTD balances for income statement accounts reflect the life to date or cumulative balance of the account without the zeroing out effect that happens at the beginning of each new fiscal year.   If there were a lapse in periodic account activities for the income statement account combination after crossing over into a new fiscal year, the PJTD balance will effectively reset to zero when balances rows are not maintained for them in dormant accounting periods following the beginning of a new fiscal year after this option has been turned on.
  • This feature applies to income statement account balances maintenance for all ledgers of all types in your system: primary, reporting currency, and secondary ledgers.  This is for both standard and average balances, if the latter is also applicable.

  • There may be cases where an account gets reclassified for its natural account type because an income statement account should have been classified as a balance sheet type. Alternatively, a balance sheet type account should have been classified as an income statement type.  Enabling this feature can have an impact. This applies, in particular, when an income statement type account is subsequently reclassified as a balance sheet type account after this feature is enabled. If there are lapses in maintaining the periodic balances for what was previously classified as an income statement type account, flipping such an account to a balance sheet type will be problematic because a balance sheet account combination needs to have its periodic balances contiguously maintained for every accounting period. Such a situation needs to be carefully reviewed and addressed to avoid possible corruption with the account balances data. In any case, handling account type misclassification is a correction step that should be done with great care, and if needed, should only be done one time for a given account. 

Key resources

Oracle Help Center: Using General Ledger

Access requirements

No new access requirements.