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Average balance ledger based on value date

Description

As from Release 3.0, you can manage average balance ledgers in the SAP System. These ledgers show all incoming and outgoing postings weighted according to the posting date (also see FI-SL Release note Average balance ledger).

Banks, however, need to be able to determine average balances based on the value date, as well as on the posting date. The information provided in this release note primarily applies to banks.

Average balances are required by every bank which has obligations to fulfill in regard to:

Average balances are used for both external and internal purposes.

In internal controlling, they are used to calculate interest for non-interest-bearing items or for non-customer transactions, such as:

Interest earning accounts are checked on the basis of the average balances for the overnight and fixed deposit accounts. This helps you to recognize accrual/deferral errors. A realistic market interest rate must result if auditing is to take place, for example.

Relevance of the posting date or value date

In Release 3.0 you have the option of determining the average balances on the basis of the posting date or the value date. The value date should be used if interest adjustments are to be carried out.

In cases where there are numerous accounts, the value date is either irrelevant or unavailable. The posting date is always available, however; this date controls the assignment of individual postings to the respective posting period.

If the average balance is to be determined using the value date and the item has no value date, the posting date is used instead.

1. Average balances on a periodic basis

In addition to posting to a ledger, you can post to a so-called average balance ledger. This shows an average balance for each period and can only be posted to in conjunction with a posting to a general ledger.

The procedure described in the following text, enables you to adjust the average monthly balances using an additional ledger. This involves the consistent updating of the average balance ledger when balances are posted. You require the FI-SL functionality for this variant. The additional ledger is updated via a System Exit.

The additional ledger is managed by period, parallel to the general ledger, which means that each transaction is updated in the same period as the original record.

Average balances can be managed on the basis of the posting date or the value date.

If you choose to use the value date and the item has no value date, the posting date is used.

The function module for the average balance ledger based on the posting date is:

G_D_LEDGER_01

The function module for the average balance ledger based on the value date is:

G_D_LEDGER_02

Example

Average monthly balance changes, stored in average balance ledger

Posting Posted General Individual Average bal.
date value ledger balance ledger
change
Nov. 01 1000 1000 30/30 -> 1000 1000
Nov. 16 1000 2000 15/30 -> 500 1500
Nov. 30 1000 3000 1/30 -> 33 1533

The posting period is always determined on the basis of the posting date, but the weighting of the posted value can be determined using the posting date or the value date.

This means that the value date may lie outside the determined period. Each line item may have a different value date. In this case the posted value is determined in the following way:

Example with a posted value of 1000:

Posting Value Weighting Weighting Average bal.
date date date (n-1+1)/n ledger

Nov. 03 Oct. 25 Oct. 25 (30- -8+1)/30 = 1233
38/30
Nov. 27 Dec. 05 Dec. 05 (30-35+1)/30 = -133
-4/30

i (curr.day) = Value date - 1st day of period
8 = 10/25 - 11/01
35 = 12/05 - 11/01

Special periods

In the case of postings to special periods (e.g. special periods 13 - 16 for year-end closing work) the average for the last normal period is calculated, e.g. period 12.

2. Average balances on a daily basis

In addition to the functionality to update the average balance ledger on a periodic basis (for evaluation see reports 0B01-001 and 0B02-001), the system offers a daily evaluation (for daily average balances). This is important for regulatory purposes (e.g. Federal Reserve, USA). Here the average balances are adjusted daily and accurate control information is required to ensure that the average balances remain above the minimum balance.

The reports for daily evaluations (daily average balances) are 0B03-001 (daily evaluation according to posting date) and 0B04-001 (daily evaluation according to value date). These reports simply carry out an evaluation. No values are updated in the database. The reports read FI documents. Either the posting date (Report 0B03-001) or the value date (Report 0B04-001) can be used for the weighting.

Example

Evaluation date: November 4

Posting Posted Individual Average
date value balance balance
change total
Nov.01 2000 2000 2000
Nov.01 1000 1000 3000
Nov.02 1500 1125 4125
Nov.03 3000 1500 5625

Average daily balances are determined using the Report Writer. The Report Writer establishes the relevant accounts from table GLT0.

3. Average balances on an annual basis (year-to-date)

Monthly averages are determined and used to establish a year-to-date value. The weighting depends on the number of days in the period.

Reporting

You do not usually have to calculate average balances for all G/L accounts. Using the set technique in the Report Writer, you can select the relevant accounts individually.

The calculation periods differ depending on the bank and the purpose. The system has sample reports for the following periods:

Period Sample report

Periods (local currency) 0B01-001
Periods (transaction currency) 0B02-001
Daily (average daily balance) by posting date 0B03-001
Daily (average daily balance) by value date 0B04-001
Annually (year-to-date) (local currency) 0B05-001
Annually (year-to-date) (transaction currency) 0B06-001

Change system parameters in customizing

Customizing for average balances on a periodic basis.

Fixed ledgers, including the FI ledger for G/L transaction figures, are maintained within the Financial Accounting Implementation Guide.
Select the General Ledger and proceed with Extras -> Average balance ledger.

Here you create the average balance ledger.

Exit G01 = Posting date (this is the default value)

Exit G02 = Value date

For further information see the "Define additional local currencies for ledgers" chapter in the Implementation Guide.

To find out how to maintain special purpose ledgers, see the IMG section for "Special Purpose Ledger (FI-SL)".
Proceed