Activate Average Balance Ledger

In this activity you can activate or deactivate an average balance ledger for Profit Center Accounting. The system automatically creates a fixed ledger "8Z" for the summary record table in Profit Center Accounting (table GLPCT).

All transactions carried out during a period are stored with a date weighting in the average balance ledger. This means that a transaction that takes place on the first day of the period is updated with a full weighting, whereas later transactions are weighted according to when in the period they occurred (days remaining in period, divided by days in period).

Activities

    1. Choose "Activate" or "Deactivate" to activate or deactivate the average balance ledger.
    2. In the second box, you can decide how the average balance should be calculated. You can have the system use either the posting date (standard exit G01) or a user exit.

Standard exits/user exits

Save your settings.

Further notes

The average balance ledger (8Z) only contains weighted transactions by period. To calculate the average balance for a period, the system needs to take the opening balance into account as well. This opening balance is taken from the profit center ledger "8A".

Example:

At the beginning of period 2, account balance =         10,000.00 
Number of days in period 2: 28 
Inward movement on 2/15: 10,000.00 
=> weighted movement: 10,000.00 * 14 days / 28 days =    5,000.00 
Inward movement on 2/22: 10,000.00 
=> weighted movement: 10,000.00 *  7 days / 28 days =    2,500.00 
                                                        ---------- 
This yields an average balance for period 2 of          17,500.00
 

 

Note that quantities are ignored when you updated the average balance 
ledger using the standard exit. In other words, they are not weighted.
 

Caution:
 

If you want to calculate the average balance using the value date, note 
that there are certain limitations. In particular, it is not possible 
to ensure that the ledger is updated consistently if the value date and posting date differ.
 

The average change in balance of a transaction is posted in the period 
of the posting date. In addition, the system adds the balances in 
ledger 8A from the previous period, which do not use the value date, to 
the average balance in ledger 8Z in order to calculate the average.
 

You can only update the average balance ledger if you update accounts 
in realtime. If you transfer these periodically, you can only see the 
balances as of the end of the period. It is no longer possible to 
determine when during the period the transactions were carried out.
 

For more information about the average balance ledger, see the online documentation for Profit Center Accounting.