¶ Introduction
Daily balances represent the account balance at the end of each day across checking, savings, investment, loan, or other account types.
Daily balances are used to calculate interest, determine minimum required payments, and provide a clear snapshot of an account’s financial position on a specific date.
Note: The daily balance may differ from the current balance. The current balance reflects real-time activity (including pending transactions), whereas the daily balance includes only fully processed and posted transactions.
In D365FO, within the Treasury module, the daily balances function recalculates loan balances either as of today’s date or as of the specified As of date.
¶ Navigation
¶ Daily use
¶ Step 1: View daily balances
For a quick look at daily balances,
- in the navigation pane, go to: Modules > Treasury > Common > Inquiries and reports > Daily balances
The Daily balances list page will be visible, featuring the following filters:
- Select companies
- The Select companies filter allows users to globally view all loans across entities.
- As of date
- The As of date filter indicates the day on which the Daily balance was revised
The Daily balances list page consists of the following columns
- The Object type will specify whether the balance represents one of the following:
- Loan
- Cash investment
- Non-Cash investment
- Reference
- The Loan number ID is visible within the Reference field
- Start date
- Date from when the loan is effective
- Customer
- Vendor
- Last transaction date
- Current amount
- Displays the loan's current outstanding capital balance, which decreases with each payment until the loan is fully repaid.
- The Current amount column on Daily balances is the same as Principal balance column on Customer loan balances data entity
- The Current amount column on Daily balances is the same as Closing balance on the Loan statement
- Capital close
- Displays the total value of all posted capital journals
- This represents the total capital issued on the loan and does not decrease over time
- Net debit amounts are displayed as positive values for receivable loans, while net credit amounts are displayed as positive values for payable loans.
- The Capital close on the Daily balances page is the same as the Capital balance close column on the Loan statement
- Total outstanding
- Total outstanding is the sum of outstanding capital and outstanding interest on the expanded loan statement.
- The Total outstanding amount is displayed in the loan currency, sourced from the Loans list page.
- The Total outstanding column on the Daily balances page is the same as the Loan balance column for Customer loan balance data entities
- The amount displayed in the Total outstanding column matches the Total outstanding amount stated on the expanded loan statement.
- Outstanding Interest
- The Outstanding Interest amount is the sum of the Annuity Interest Close and Revolving Interest Close columns in the Actual Loan Statement
- The interest balance displays unpaid interest, which decreases as interest payments are posted and reaches zero when fully paid
- The Outstanding interest column on Daily balances is the same as Interest balance on the Customer loan balances data entity.
- Transaction currency
- Daily balance amounts will be displayed in both Transaction currency and Accounting currency
- Current amount - accounting currency
- Displays the outstanding capital balance converted into the accounting currency, calculated by multiplying the capital balance in loan currency by the latest exchange rate.
- Total outstanding - accounting currency
- Displays the total outstanding loan balance converted into the accounting currency. This value is derived by multiplying the outstanding amount in the loan currency by the latest exchange rate.
- Accounting currency
- Current amount - reporting currency
- Total outstanding - reporting currency
- Reporting currency
- Company
- Capital balance
- The amount in the Capital balance column displayed on the Daily Balances inquiry corresponds to the Capital balance close amount indicated on the loan statement.
- Capital balance - accounting currency
- Capital balance - accounting currencyis calculated as the Capital balance adjusted by the latest exchange rate for the accounting currency.
Transactions in a financial system are typically recorded in a transaction currency, which is the currency in which the transaction took place.
The reporting currency is the currency in which financial reports are prepared and presented, and the accounting currency is the currency in which a company's financial statements are kept and recorded.
Having the ability to view the daily balance amounts in all three currencies allows for a comprehensive view of the financial information and helps in effective financial management and analysis.
The transaction currency provides a clear picture of the financial activity in the currency it took place, while the reporting and accounting currencies help in presenting the financial information in a manner that is easily understood and comparable across different periods and with other companies
¶ Step 1.1: Export to Excel
The Daily balances list page can be Exported to Excel
Note, when exporting the Daily balances report to Excel, the values in the Total outstanding column are rounded, and the cents are not fully displayed. As a result, the Total outstanding balance shown on the list page may be slightly different from the Total outstanding balance in the exported Excel file.
¶ Step 1.2: Treasury columns explained
| CUSTOMER LOAN BALANCE DATA ENTITY | DAILY BALANCES | LOANS LIST PAGE | LOAN STATEMENT | DESCRIPTION |
|---|---|---|---|---|
| PAID CAPITAL | The sum of all paid capital on the loan Actual statement | |||
| PAID INTEREST | The sum of all paid interest amounts on the loan Actual statement | |||
| TOTAL LOAN AMOUNT | Sum of all payments, accounting for scenarios that deviate from the projected statement
It adds the Actual instalments to the Projected instalments for the loan It includes both the history of payments and future planned instalments |
|||
| LOAN AMOUNT | Loan limit granted | |||
| LOAN BALANCE | TOTAL OUTSTANDING | TOTAL OUTSTANDING | TOTAL OUTSTANDING | It is the sum of outstanding capital and outstanding interest on the expanded loan statement |
| CURRENT AMOUNT - ACCOUNTING CURRENCY | Calculated as the Capital balance outstanding adjusted by the latest exchange rate | |||
| TOTAL OUTSTANDING - ACCOUNTING CURRENCY | It is derived from the Total outstanding amount and the latest exchange rate
Multiplying the outstanding amount in loan currency by the latest exchange rate |
|||
| INTEREST BALANCE | OUTSTANDING INTEREST | OUTSTANDING INTEREST | ANNUITY INTEREST CLOSE | The interest balance is unpaid interest, which reaches zero when the loan is fully repaid
It equals the sum of Annuity interest close on the Actual statement |
| INTEREST BALANCE | OUTSTANDING INTEREST | OUTSTANDING INTEREST | REVOLVING INTEREST CLOSE | The interest balance is unpaid interest, which reaches zero when the loan is fully repaid
It equals the sum of Revolving interest close on the Actual statement |
| CAPITAL CLOSE | CAPITAL CLOSE | CAPITAL BALANCE CLOSE | Total Capital journals posted
This is the total capital issued on a loan and does not decrease over time Net debit is positive for receivable loans; net credit is positive for payable loans |
|
| PRINCIPAL BALANCE | CURRENT AMOUNT | CURRENT AMOUNT | CLOSING BALANCE | Remaining capital balance after payments
Reaches zero when fully repaid Loan current outstanding capital balance |
¶ Step 2: View the currency exchange rate
For this example, the focus will be on the currency exchange rate between USD and GBP
- Navigate to: Treasury > Setup > Currency > Currency exchange rates
- In the From currency column, filter on USD
- In the To currency column, find GBP
- Examine the most recent exchange rate between USD and GBP
¶ Step 3: Daily balances on a loan
To illustrate a practical example of a loan with a transaction currency of GBP and an accounting currency of ZAR:
- Navigate to Treasury > Loans > Loans
- Filter on a specific loan
- In the Action menu, on the Loan tab, under the heading Transactions, click on Generate statement
- For Transaction type, select Actual
- The Expanded statement toggle should be set to Yes
- Find the columns called Capital balance close and Total outstanding
- For the Capital balance close and Total outstanding columns, review the figures on the last line of the Actual loan statement, and compare them with the totals provided in the Daily Balances inquiry
- Compare the Capital balance close and Total outstanding amounts with the Capital close and Total outstanding amounts on the Daily balances enquiry screen
