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Clarification of Journal Type and Average Balance Processing [ID 1072012.6]

Modified: Oct 29, 2009 Type: PROBLEM Status: PUBLISHED Priority: 3

Reviewed and updated on 26th May 2006 Problem Description ------------------You need clarification on the Journal Type and Average Balance Processing information that is documented in the Oracle General Ledger Release 10SC User's Guide, page 1-10. "12. (Optional) If you have average balance processing enabled and your set of books is a consolidation set of books, select Standard or Average as the Journal Type. In a consolidation set of books, you can create journal entries that affect either standard or average balances. The balances are not linked. In a non-consolidation set of books, you can only create journal entries that directly affect standard balances. Average balances are calculated automatically from your standard balances." Solution Description -------------------General Ledger has two tables that store balances - GL_BALANCES and GL_DAILY_BALANCES. For a non-consolidation set of books: - You do not select a Journal Type. - Posting will update GL_BALANCES. - Posting will update GL_DAILY_BALANCES if average balance processing is enabled. For a consolidation set of books: - You can specify the Journal Type (Standard or Average). - The Standard Journal Type usage will cause GL_BALANCES only to be updated. - The Average Journal Type usage will cause GL_DAILY_BALANCES only to be updated. - In a consolidation set of books, with ADB enabled you would want more control over average balances maintained by date. Hence the option was provided to allow posting using a journal type of Average which affects only the GL_DAILY_BALANCES. When does the calculation of averages occur? Data is stored in the GL_DAILY_BALANCES table and information is calculated and output at run time based on the query or report being run. References ---------Oracle General Ledger User Guide Release 11i Refer Chapter Average Balance Processing > Consolidation Oracle General Ledger User's Guide Release 11, pages 9-25 and 9-26, part #A58472-01. Search Words -----------average daily balances GL_BALANCES GL_DAILY_BALANCES ADB GLXJEENT, Enter Journals form average_journal_flag gl_interface

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