Balance Overview
Overview
The key function of a Subledger is to record Journals and then aggregate the transaction amounts of the individual Journal Lines into Balances. A Balance is always the sum of all transaction amounts of all the Journal Lines comprising the Balance up to the requested Balance Date. The Balance Date is a mandatory parameter defining the date for which the Balance is calculated. Each Journal Line can only be part of one Balance (for a given date).
Level of Aggregation
Balances are a sum of transaction amounts of all the Journal Lines aggregated by a particular set of Subledger dimension values. You can choose the level of aggregation with which the Balances are displayed by choosing a set of Balance attributes and defining criteria for them to limit the query. For more details on Balance attributes and query criteria, please refer to the Balance Queries topic.
If you enable support for multiple currencies, you can choose if you want to aggregate balances based on the Transaction Currency, the Functional Currency, the Reporting Currencies, or a combination of them.
Balance Calculation
The date field used for balance calculation is the field that the client configures as the CORE_DATE_FIELD and which is then referred to in the screen as the Balance Date.
Any Journal Line posted on or before that date for the given set of subledger dimension values will be included in the balance calculation.
Example:
Where:
Closing balance on 31/12/19 is +5,365.41
Postings on 1/1/20 are -525
then
Balance at 1/1/20 is +5365.41-525 = +4,840.41
Example 2:
This example shows how Journal postings affect Balances.
For this example:
Closing balance on 31/12/19 is GBP 5,365.41
The table below shows three Journal Lines that were posted between January 1st and January 3rd 2020:
The Balance for Balance Date 01/01/2020 requested on 01/01/2020 is: GBP 5,365.41 - GBP 525.00 = GBP 4,840.41
The Balance for Balance Date 01/01/2020 requested on 02/01/2020 is still: GBP 5,365.41 - GBP 525.00 = GBP 4,840.41
However, because an additional Journal Line was posted for 01/01/2020 on 03/01/2020:
The Balance for Balance Date 01/01/2020 requested on 03/01/2020 is: GBP 5,365.41 - GBP 525.00 - GBP 360.00 = GBP 4,480.41
The Balance for Balance Date 02/01/2020 requested on 02/01/2020 is GBP 5,365.41 - GBP 525.00 + GBP 1,287.15 = GBP 6,127.56
However, because an additional Journal Line was posted for 01/01/2020 on 03/01/2020:
The Balance for Balance Date 02/01/2020 requested on 03/01/2020 is: GBP 5,365.41 - GBP 525.00 - GBP 360.00 + GBP 1,287.15 = GBP 5,767.56
