Accounting & Reporting

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www.jethroltd.com_{www.jethroltd.com}

Jethro Ltd

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www.jethroltd.com

COURSE PROGRAMS

• OVERVIEW T24 FINANCIAL REPORTING

• MAIN TRANSACTION FILES • PARAMETER FILES ON T24 GL

• CREATION AND MAINTENANCE OF A GL REPORT ON T24 • ASSETS AND LIABILITIES - REVALUTION

• GL MISMATCH – DIAGNOSTICS AND RESOLUTION

PLEASE NOTE:

Emphasis on practical sessions, Learn by doing approach

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OVERVIEW T24 FINANCIAL REPORTING

FINANCIAL REPORTING FROM IT Timeliness

All financial reports generated from the system, must be available when needed

Accuracy

All financial reports must be accurate; e.g. the Gen ledger must be balanced and all schedules must be readily available and reconcilable with the GL position.

Meaningfulness

All financial reports must be meaningful and easily understood; there should be no ambiguity in the output

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The reporting consolidation Module maintains the CONSOLIDATION REPORTING BASE (CRB)from which financial reports such as the General Ledger, Balance sheet, Profit & Loss, Central Bank reports are produced.

The module consist of two main components the UPDATE and the Report PRODUCTION components.

There TWO main sources of transaction Input

USER/CUSTOMER INITIATED – These are mainly through the following application in T24

- DATA CAPTURE - FUNDS TRANSFER - TELLER (ATM)

SYSTEM INITIATED

- ACCRUAL INTEREST & CHARGES - COMMISSIONS

- REVALUATION

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T24 ACCOUNTING FILES/ENTRIES

• STMT.ENTRY

This file contains Debit/Credit entries that are posted into all All accounts (both customer and internal accounts) on the system. A daily transaction file

ACCT.ENT.TODAY is maintained as a transit file and cleared during COB on a daily basis.

• CATEG.ENTRY

All Profit & Loss entries are posted in this file; the entries are then

aggregated on the file CONSOLIDATE.PRFT.LOSS. There is no actual General Ledger account for these entries. A daily transaction file

CATEG.ENT.TODAY is maintained as a transit file and cleared during COB on a daily basis.

• RE.CONSOL.SPEC.ENTRY

All entries on Contracts and other Special entries are posted in this file. A daily transaction file CONSOL.ENT.TODAY is maintained as a transit file and cleared during COB on a daily basis.

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 CONSOLIDATION PARAMETER

•

T24 does not require General Ledger accounts to facilitate financial reporting, so how does it maintain a General Ledger system? The problem associated with systems that use General Ledger accounts will

better explain this;

• An account must be opened for each currency you deal.

•You may have different types of loans for example; Personal Loan,

Inter-bank loan, Corporate Loan. If you need those to be further broken down by Residence, Nationality, Industry, you may require several accounts and the administration would require a lot of effort.

•In T24 the transaction Data (STMT.ENTRY, CATEG.ENTRY &

RE.CONSOL.SPEC.ENTRY) is used to feed the General Ledger, this is accomplished by telling T24 how the data should be analyzed. One of the first files setup on implementation is the CONSOLIDATE.COND, which has two records viz; ASSET&LIAB and PROFIT&LOSS.

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CONSOLIDATE .COND

One of the first files to setup on implementation is the CONSOLIDATE.COND, which has two records viz;

ASSET&LIAB and PROFIT&LOSS.

In this file you specify where T24 searches for consolidation variables required, such as Industry, Account officer, Residence, Nationality, Sector etc

Once this file and the application parameters are in place, T24 is ready to create the General Ledger.

• The set up of CONSOLIDATE.COND will be treated in practical session • The creation of a GL report will be treated in a practical session

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CRB

UPDATE CONSOLIDATE.COND - ASSET& LIAB - PROFIT&LOSS CONSOLIDATE.ASST.LIAB CONSOLIDATE.PRFT.LOSS REPORT PRODUCTION RE.STAT.REP.LINE RE.STAT.REPORT.HEAD RE.STAT.RANGE RE.STAT.COLUMN,RANGE REPORTS

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CHART OF ACCOUNTS TOOLS

RE.STAT.COLUMN.TYPE

RE.STAT.REPORT.HEAD

RE.STAT.REP.LINE

RE.STAT.RANGE

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RE.STAT.COLUMN.TYPE

This is table use to develop details for each column that can be printed. It is use indicate whether a movement amount or balance amount is to be printed.

RE.STAT.REPORT.HEAD

This is use to create heading details indicating the columns to be printed, the amount size, whether reports are by currency or all currencies

RE.STAT.RANGE

The table is required when there are numbers of product need to be mapped or report on a single line, the table helps in grouping various parameter together to report on a single line.

RE.STAT.REP.LINE

This is the main engine for building each line on the chart of account. The tables uses

parameters like category, DAO, Sector etc. This is where most formatting and development take place.

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ASSET AND LIABILITY PARAMETERS

 FOUR FIXED PARAMETERS

• APPLICATION ID – e.g AC, LD, MM, MD, • CURRENCY MKT

• POSITION TYPE • CURRENCY

 TWELVE GENERAL PARAMETERS

e.g. Category, Industry, Sector, DAO, Residence, Time,

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PROFIT AND LOSS PARAMETER

 ONE FIXED PARAMETERS – APPLICATION ID – PL  TWELVE GENERAL PARAMETERS

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FILE STRUCTURE

CONSOLIDATE.ASST.LIAB

R8 MODEL BANK Consolidate Asset Liabilities SEE

CONSOL.KEY... AC.1.TR.CHF.1001.1001.GB...1000

---1 APPLIC.ID... AC

2 CURRENCY.MARKET... 1 Currency Market 3 POSITION.TYPE... TR TRADING POSITION 4 CURRENCY... CHF Swiss Franc

5 CATEGORY... 1-001 Current Account 6 SECTOR... 1001 Individual

7 RESIDENCE... GB Great Britain

12 INDUSTRY... 1000 Private Person (Name) 17 DATE.LAST.UPDATE.. 07 JAN 2008

18. 1 TYPE... CREDIT

19. 1 BALANCE... 10,000,000.00 22. 1 LOCAL.BALANCE.. 8,431,703.20

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FILE STRUCTURE

CONSOLIDATE.PRFT.LOSS

R8 MODEL BANK Consolidate Profit Loss SEE

CONSOL.KEY... PL.50000.6001.2001.60.US...

---1 APPLIC.ID... PL

2 PLCATEGORY... 50-000 ***Interest Expense 3 PLPRODUCT... 6001

4 PLSECTOR... 2001 Corporate

5 PLDEPARTMENT... 60 Risk Manager

6 PLRESIDENCE... US United States of America 14 DATE.LAST.UPDATE.. 07 JAN 2008

15. 1 CURRENCY... USD US Dollar 16. 1 BALANCE... -919.26

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REVALUATION ASSET AND LIABILITIES

 At the end of each run and prior to the production of reports all non-contingent

foreign currency records are revalued. This excludes all FORWARD Loans and Deposits.

The process involved revaluing each foreign currency by type. The total new local

equivalent from all currency records with the same market and position type is

checked against the LOCAL.EQUIVALENT from the Assets and liabilities records on the Position file . If there is a difference then the last record for the currency on the Assets and Liability Consolidate file is adjusted by that amount.

 Special Movement entries are raised for the amount of each revaluation based

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CHART OF ACCOUNTS TOOLS

A Practical and Interactive

Session on Chart of Account

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GL MISMATCH – DIAGNOSTICS AND RESOLUTION

 ASSETS + LIABILITIES = 0  Double entry Accounting system

 What is GL difference? Where the summation of Asset and Liabilities does not

equal Zero

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TOOLS TO IDENTIFY DIFFERENCES

EB.SYSTEM.SUMMARY TRANS.JOURNAL

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CONTRACT BALANCE & CRF BALANCE

When a Contract is inputted and authorized • Contract File

• Contract Balance file

• Accounting Entries will be generated After an EOD

• Balance Look-up file

• Update the CONSOLIDATION KEYS • Consol Look-up file

---Balance in the Look-up file is the Contract ---Balance Balance in the Consolidation Keys is the CRF Balance

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Date Trans Stmt Categ Spec Key/asst type

1st _{Oct 2007} _New contract 10,000 -10,000 AC.1.TR.USD…DEBIT LD.1.TR.USD……LIVEDB 2nd _{Oct 2007} _ACCRUAL ₁₀ _-10 _PL…… LD.1.TR.USD.….51000 3rd _{Oct 2007} _ACCRUAL ₁₀ _-10 _PL…… LD.1.TR.USD.….51000 4th _{Oct 2007} _ACCRUAL ₁₀ _-10 _PL…… LD.1.TR.USD.….51000 5th _{Oct 2007} _ACCRUAL ₁₀ _-10 _PL…… LD.1.TR.USD.….51000 6th _{Oct 2007} _ACCRUAL ₁₀ _-10 _PL…… LD.1.TR.USD.….51000 7th _{Oct 2007} _Maturity _-10,000 _10,000 _{AC.1.TR.USD…DEBIT}

LD.1.TR.USD……LIVEDB

7th _{Oct 2007} _Cap _-50 ₅₀ _{AC.1.TR.USD…DEBIT}

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BALANCE FILES FOR VARIOUS APPLICATIONS

Details of the Balance file and lookup files for various applications:

Application Balance file

Lookup File - Balances

Account Account Account

Money Market (MM) LMM.ACCOUNT.BALANCES RE.LMM.BALANCES

Loans and Deposits (LD) ACCBAL RE.LD.ACC.BAL

Letter of Credit (LC) LETTER.OF.CREDIT RE.CONTRACT.DETAIL

Drawings (DR) DRAWINGS DRAWINGS

Mortgage (MG) MG.BALANCES RE.MG.BALANCES

Payment Dues (PD) PD.BALANCES RE.CONTRACT.BALANCES

Fiduciary (FID) FD.BALANCES RE.FD.BALANCES

Swaps (SW) SWAP.BALANCES RE.CONTRACT.BALANCES

Forex (FX) FOREX RE.FOREX.OPTION

FRA FRA FRA

Securities (SC) SC.TRADING.POSITION SC.TRADING.POSITION

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Details of the Balance file and lookup files for various

applications

Application Lookup File - Consol Keys

Account RE.CONSOL.ACCOUNT

Money Market (MM) RE.CONSOL.MM

Loans and Deposits (LD) RE.CONSOL.LOAN

Letter of Credit (LC) RE.CONSOL.LC

Drawings (DR) RE.CONSOL.LC

Mortgage (MG) RE.CONSOL.MG

Payment Dues (PD) RE.CONSOL.PD

Fiduciary (FID) RE.CONSOL.FID

Swaps (SW) RE.CONSOL.SWAP

Forex (FX) RE.CONSOL.FOREX

FRA RE.CONSOL.FRA

Securities (SC) RE.CONSOL.SEC

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REASONS FOR A MISMATCH

1.Wrong update of CONTRACT BALANCES

2. Incorrect Accounting Entries

(RE.CONSOL.SPEC.ENTRY)

3.Cal update problem

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EFFECTS OF MISMATCH

 Wrong update of Contract Balances

 Wrong Interest & other calculations

 Maturity of Contract

 Incorrect Accounting Entries

GL differences

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HOW IT HAPPENS?

GL Difference Mismatch Position

Single side Entries Yes Yes Yes

CAL not updated Yes Yes Yes

CPL not Updated Yes No No

AC/Contract Not Updated No Yes No

Problem in Position Update

Yes No Yes

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Analysis of Mismatch

Tools used in Globus

 General Ledger (GLSTD, MBGL…)

RE.STAT.MISMATCH

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Correction of Mismatch

On finding the reason & fixing it:

Correct the Contract Balance

Correct the CAL through Accounting Entry

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Correction of Accounting Entries

Update

CONSOLIDATION KEY

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Input CONSOL.ENT.TODAY entry

 Raise RE.CONSOL.SPEC.ENTRY  Update the Consolidation Key

Update STMT / CATEG Entry

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FILE STRUCTURE STMT.ENTRY

• R8 MODEL BANK STMT.ENTRY SEE

• STMT.ENTRY.ID... 146910000361803.020001

•

---• 1 ACCOUNT.NUMBER.... 37397 David

• 2 COMPANY.CODE... GB-001-0001 R8 MODEL BANK

• 3 AMOUNT.LCY... 2,000,000.00

• 4 TRANSACTION.CODE.. 52 Cash Deposit

• 6. 1 NARRATIVE... Cash Deposit at HO

• 8 CUSTOMER.ID... 111119 David

• 9 ACCOUNT.OFFICER... 2002 Corporate Banking

• 10 PRODUCT.CATEGORY.. 6-001 Savings Account 1

• 11 VALUE.DATE... 05 DEC 2007

• 12 CURRENCY... USD US Dollar

• 16 POSITION.TYPE... TR TRADING POSITION

• 19 EXPOSURE.DATE... 05 DEC 2007

• 20 CURRENCY.MARKET... 1 Currency Market

• 22 DEPARTMENT.CODE... 1 Implementation • 23 TRANS.R TT07339V2MWG • 24 SYSTEM.ID... TT TELLER • 25 BOOKING.DATE... 05 DEC 2007 • 26. 1 STMT.NO... 146910000361803.02 • 26. 2 STMT.NO... 1-2 • 29 CURR.NO... 1 • 30. 1 INPUTTER... 3_SEAT.USER___OFS_SEAT • 31. 1 DATE.TIME... 21 MAR 08 17:10 • 32 AUTHORISER... 3_SEAT.AUTH • 36 CRF.TYPE... CREDIT • 39 CONSOL.KEY... AC.1.TR.USD.6001.1001.US...1000 • 43 DEALER.DESK... 00 • 63 CHQ.COLL.ID... 01 • 100 PROCESSING.DATE... 05 DEC 2007 • 104 ORIG.CCY.MARKET... 1 29

Accounting & Reporting

Jethro Ltd

COURSE PROGRAMS

T24 ACCOUNTING FILES/ENTRIES

•

CONSOLIDATE .COND

CRB

CHART OF ACCOUNTS TOOLS

RE.STAT.COLUMN.TYPE

RE.STAT.REPORT.HEAD

RE.STAT.REP.LINE

RE.STAT.RANGE

RE.STAT.COLUMN.TYPE

RE.STAT.REPORT.HEAD

RE.STAT.RANGE

RE.STAT.REP.LINE

PROFIT AND LOSS PARAMETER

FILE STRUCTURE

FILE STRUCTURE

REVALUATION ASSET AND LIABILITIES

CHART OF ACCOUNTS TOOLS

A Practical and Interactive

Session on Chart of Account

GL MISMATCH – DIAGNOSTICS AND RESOLUTION

TOOLS TO IDENTIFY DIFFERENCES

CONTRACT BALANCE & CRF BALANCE

BALANCE FILES FOR VARIOUS APPLICATIONS

Details of the Balance file and lookup files for various applications:

Details of the Balance file and lookup files for various

applications

REASONS FOR A MISMATCH

1.Wrong update of CONTRACT BALANCES

2. Incorrect Accounting Entries

(RE.CONSOL.SPEC.ENTRY)

3.Cal update problem

EFFECTS OF MISMATCH

 Wrong update of Contract Balances

 Wrong Interest & other calculations

 Maturity of Contract

 Incorrect Accounting Entries

GL differences

HOW IT HAPPENS?

Analysis of Mismatch

Tools used in Globus

 General Ledger (GLSTD, MBGL…)

RE.STAT.MISMATCH

Correction of Mismatch

On finding the reason & fixing it:

Correct the Contract Balance

Correct the CAL through Accounting Entry

Correction of Accounting Entries

Update



Update STMT / CATEG Entry

Smart Solutions™

Workshop…

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