Period Initialization.

[Former Member]

When the 'Period Initiazation' is executed do we normally required to reverse the ' IC elimination of expense/revenue' of previous months?

yes, it depends on setting of the DT. But the question is whether this IC elimination of expense/revenue, dividend need to be reversed or not with in same year.

[dan_sullivan · Accepted solution]

Yes I prefer to avoid inversion documents. With I/C eliminations, which are cumulative, only periodic values are calculated and posted because the previous periods eliminations are considered when determining the current period postings.

So I typically do not create any automatic inversion documents and therefore leave the period initialization taks out of the task hierarchy.

However, if the customer is familiar with inversions and includes this in the requirements, of course it will be included.

[Former Member · Accepted solution]

Dan, thanks so much!

But, I didn't really get the solution. How are you able to have the DocTypes without inversions in case of I/C eliminations?

[dan_sullivan · Accepted solution]

I try to give an example:

In period 001, posting level 00 I/C revenues are credit of 110. The I/C elimination at posting level 20 is debit of 110.

In period 002 the cumulative posting level 00 I/C revenues are credit of 200.

Because there is already a posting level 20 record for debit of 110 (no inversion occurred), the I/C elimination for period 002, at posting level 20 is debit of 90.

I hope this helps, but feel free to aks more questions otherwise.

[Former Member · Accepted solution]

What happend if the inversion ocurred? is like the follow data:

When the task "Period initialization" was run inverted the document with posting level 20, and then when you execute IC Elimination the document is a debit of 200 .

is it correct?

Cheers

[dan_sullivan · Accepted solution]

Yes, with the latest scenario where inversion has occurred, the new elimination document would correctly be for the debit of 200.

[Former Member · Accepted solution]

Hi All,

I don't think I'm clear enough with this period initialization task. Is it ok if I omit this task?

Means that I dont want to create & perform at all. Any implication on my other consolidation tasks & report?

Thanks

[dan_sullivan · Accepted solution]

This task is not necessary if no automatic inversion docs are created/used. As mentioned earlier I avoid these as much as possible.

[Former Member]

Yes, the DocType is a one nuance. Another one (and, IMHO, the main) is the type of data. If the loaded data have the cumulative type (for, example, YTD), then, you'll have to use the DocType with inversion.

It would be interesting to hear the opinion of Dan. He wrote that prefer to not using the DT with inversion. Does it mean that he uses a periodic data or something else? Just curious.