AristoTelos Academy

Running Balance Period with Automatic Balance Aging

Running Balance Period with Automatic Balance Aging

Use Case

Some organizations prefer running (floating) balance periods defined by a number of months rather than fixed dates.

Each monthly balance must be settled within a defined lifespan starting from its origin month.

Business Purpose

  • Enforces timely overtime compensation
  • Prevents indefinite balance carryover
  • Aligns with regulatory requirements

System Behavior

  • Each monthly balance is tracked with its origin month
  • At each monthly closure:
    • The system identifies balances reaching the end of the running period
    • The oldest positive balance is automatically settled
Running Balance Period with Automatic Balance Aging | AristoTelos Academy