What is average balance ledger in SAP FI-SL - Special Purpose Ledger?

SAP Term: average balance ledger

• Component: FI-SL

• Component Name: Special Purpose Ledger

• Description: An additional ledger assigned to a direct posting ledger that inherits the attributes of the direct posting ledger such as the fiscal year variant, the table that the direct posting ledger uses. The average balance ledger stores the average balances per period. It can be used only for reporting purposes and displaying records. It cannot be used for: Planning Allocation Rollup processes

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• Key Concepts: 
  Average balance ledger is a special purpose ledger in SAP Financial Accounting (FI-SL) that allows users to track the average balance of a particular account over a period of time. This ledger is used to calculate the average balance of an account, which can be used for various purposes such as calculating interest or taxes. 
  
  How to use it: 
  To use the average balance ledger, users must first create an account in the FI-SL module. Once the account is created, users can enter the opening balance and then enter all transactions that affect the account. At the end of each period, the system will calculate the average balance of the account and store it in the average balance ledger. 
  
  Tips & Tricks: 
  When using the average balance ledger, it is important to ensure that all transactions are entered correctly and accurately. This will ensure that the average balance is calculated correctly and accurately. Additionally, it is important to keep track of any changes in the account’s opening balance as this will affect the average balance calculation. 
  
  Related Information: 
  The average balance ledger is closely related to other FI-SL components such as General Ledger and Accounts Payable/Receivable. Additionally, it can be used in conjunction with other SAP modules such as Controlling (CO) and Materials Management (MM).