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I have just sent my Fall transcript request. Will OLSAS recalculate my GPA or will schools use my new grades at their discretion? Also, any ideas for the timeline of this?

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OLSAS will recalculate your GPA, it happened within a day for me. I believe schools use this at their discretion as some schools take best two years (as compared to CGPA) etc. and it's not a 'full year'. As a result, I've heard there is differences with respect to considerations of fall grades across the schools (if anybody knows more than me, please comment as well, I am interested in knowing more about the usage of fall grades as well). 

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