Setup Considerations: Average Daily Balances

Workday enables you to track daily ending balances for ledger account and worktag combinations to calculate average daily balances for regulatory reporting.

You can:

Calculate average daily balances and daily ending balances on a combination of ledger accounts and worktag types.
Calculate the average daily balances on a month-to-date, quarter-to-date, or year-to-date basis.
Configure average daily balance rules to calculate on any balance sheet account including current year retained earnings.
Filter both average daily balances and daily ending balances by company, book, ledger account, and worktag type.
You can also create consolidated balance sheets with these elimination values:
Intercompany.
Interworktag (if you have a primary balancing interworktag).
Investment in subsidiary.
Subsidiary equity.

You can use average daily balance to comply with banking regulations. Examples:

Banks calculate and pay interest to their customers based on the average daily balances of customer deposits.
Credit card companies calculate and charge interest based on the average daily balances of customers outstanding balances.

Questions	Considerations
What do you need to do to produce consolidated reports on average daily balances?	Set up reports using the Average Daily Balance Lines for Financial Reporting report data source. Then select the Intercompany Affiliate worktag on the average daily balance rule so that eliminations generate correctly when you run reports.
Do you want to process average daily balances on retained earnings?	When processing average daily balances on balance sheet accounts, you can select the Calculate Current Year Retained Earnings check box in the average daily balance rule. If you select the check box, Workday requests the account used for the retained earnings beginning balances, and includes the amount in the process. If you’re using the latest version (ADB 3.0), Workday uses the accounts specified in the Year End Closing Rules to calculate average daily balances on retained earnings.
Do you need to set up worktags for average daily balance retained earnings?	For ADB 2.0, Workday doesn't support any worktag carryover from net income, for both the current and prior year retained earnings accounts in the average daily balance job. For ADB 3.0, Workday preserves worktags on ADB lines for Retained Earnings accounts as defined in your ADB rules. High-volume worktag types can significantly impact your ADB processing and reporting performance.

When calculating average daily balance on balance sheet accounts, select the

Calculate Current Year Retained Earnings

check box in the average daily balance rule.

Workday recommends balancing to source systems based on either the transaction posting date or the transaction accounting date (value date) using the

Journal Lines

report data source. In Workday, the posting date is the last updated date, not the accounting date. When balancing to source systems based on posting date, Workday recommends not editing the journal at a later date. The reposted journal will reflect the edit date, not the original post date.

Workday also recommends using only those ledger accounts and worktag combinations required for the average daily balances.

No impact.

Average Daily Balance doesn't support detailed payroll journals, and only supports summarized payroll journals when configured.

Actuals ledgers are the only supported ledger type.

Average Daily Balance supports:

Company security on all average daily balance report data sources.
Organization security on the
Average Daily Balance Lines
report data source, but not on the
Average Daily Balance Lines for Financial Reporting
report data source.
Consolidated reporting for wholly owned companies using the same ledger currency, using the
Average Daily Balance Lines for Financial Reporting
report data source.

You can't process Average Daily Balances for more than 6 months at a time.

No impact.

Configure the

Average Daily Balance Event

business process to approve the average daily balance results.

You can use these report data sources to create custom reports:

Average Daily Balance Headers
Average Daily Balance Line for Financial Reporting
Average Daily Balance Lines

Web Services	Considerations
Get Average Daily Balance Rule Put Average Daily Balance Rules	Returns and creates average daily balance rule configurations.
Put Historic Average Daily Balances	Uploads daily ending balances.

Workday updates your average daily balance with any activity in manual and operational journals.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.