When you invoke the Update API, you will also pass the Date Track Mode.
If Date Track Mode = 'CORRECTION' then, the record which is active as of the Effective Date will be updated.
If Date Track Mode = 'UPDATE' then, a new Date track record would be created effective from the Effective Date.
If Date Track Mode = 'UPDATE_CHANGE_INSERT', then a new Date track record would be created with Effective Start Date = Effective Date and Effective Date = Effective Start Date of future record -1.
If Date Track Mode = 'UPDATE_OVERRIDE', then all the future records from Effective Date will be deleted and a new Date track would be created from Effective Date.
I hope this would help you in understanding the importance of Effective along with Date track modes.
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