Interest Allocation Report - Average Daily Balance

• Interest Allocation Report Average Daily Balance is in question
• Where does Average Daily Balance from in Munis?

• Interest Allocation (IA)
• Cash Flow (CF)
• Average Daily Balance (ADB)
• Transaction Type 1 (Actuals) Posted

The beginning cash balance is taken for the cash account by first selecting the actuals up through (but not including) the reporting period

1. The beginning cash balance is taken for the cash account by first selecting the actuals up through (but not including) the reporting period.
   • Interest Allocation Report - Starting Balance Amount
2. The activity for the cash account is then selected for the reporting period using the year, period, and the effective date.
   • See example below in additional information
3. The effective date is how we determine how to compute the average daily balance.

For example: 

• Let's say Beginning Cash Balance for Cash Account A: $300
• Cash Account A has 3 transactions in October
• We divide the amount of each transaction by the number of days in the month and then multiply that number by the number of days left in the month based on the effective day (seen below)
  • Transaction 1: $8000 – Effective date 10/1/12 - (8000/31) * 31 = $8000
  • Transaction 2: $250 – Effective date 10/5/12 - (250/31) * 27 = $217.74
  • Transaction 3: $5000 – Effective date 10/10/12 - (5000/31)*22 = $3548.38
    • The average daily balance will take that sum and then add in the beginning cash balance, so the average daily balance will be $12066.1