Overview of Average Balance Processing (Oracle General Ledger Users' Guide) (2024)

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The Average Balance feature of Oracle General Ledger provides organizations with the ability to track average and end-of-day balances, report average balance sheets, and create custom reports using both standard and average balances. Average balance processing is particularly important for financial institutions, since average balance sheets are required, in addition to standard balance sheets, by many regulatory agencies. Many organizations also use average balances for internal management reporting and profitability analysis.

The difference between an average and standard balance sheet is that balances are expressed as average amounts rather than actual period-end amounts. An average balance is computed as the sum of the actual daily closing balance for a balance sheet account, divided by the number of calendar days in the reporting period.

With General Ledger you can maintain and report average balances daily, quarterly, and yearly. General Ledger tracks average balances using effective dates which you enter for each of your transactions.

General Ledger stores both average and end-of-day balance amounts. These amounts can be used with many other General Ledger features, such as translation, consolidation, multi-currency accounting, and formula journals.

References

The following publications provide additional information about some of the concepts presented in this overview:

Oracle General Ledger Reference Manual, Release 10

Oracle General Ledger Applications Technical Reference Manual

Oracle Applications User's Guide, Release 10SC

Oracle Applications System Administrator's Guide, Release 10SC