APPLI CATI ONACCOUNTI NG I nt r oduct i on This section section covers the basic of the accounting accounting for each T24 module module in order to provide provide an overview in a centralised place. This document will be expanded upon for new and existing applications and feedback from users would be appreciated. In order order to underst understand and the account accounting ing detail detailss in each applicat application ion it is necess necessary ary to understand the concept of accounting in T24 ; accordingly the next few sections will provide a short explanation.
Ma i nAc count i ngFi l e s/ Ent r i es As bankers are used to the concept that for each credit or credits there is a balancing debit or debits we shall proceed on that premise. In balancing the system T24 uses a few key accounting entry files and some database type balancing files. These are
STMT MT. ENTRY The !T"T.#$T%& file contains the debit'credit entries that are passed over any accounts that are entered in the A(()*$T application. If you check a record in A(()*$T you will see several balances; such as )+#$.A(T*A,.-A, and )+#$.(,#A%#.-A, / this concept could be called a database type balance in that the amounts are affected by entries.
CATEG. ENTRY All All +', +', entrie entriess are are pos poste ted d to the (AT#0.#$T%& (AT#0.#$T%& file and are amalgamated into the ()$!),IAT#.+%1T.,)!! file. There is no actual 0eneral ,edger account for these entries/ the virtual3 account this uses is explained below. b elow.
RE. CONSOL OL. SPEC. ENTRY The %#.()$!),.!+#(.#$T%& file is so named as it contains the special entries used to update the balances on the consolidation consolidation files. These entries entries are comprised comprised of entries that are not passed through the (AT#0.#$T%&or !T"T.#$T%& files.
CRBKeys/ Fi l es
As mentioned earlier/ T24 does not reuire 0eneral ,edger accounts/ so how does it maintain a 0eneral ,edger system5 In order to understand this let us consider the problems in systems that use 0eneral ,edger accounts. An account must be opened in each currency you deal in. 1or transactio transactions ns such as loans you may have many different different types such as corporate loans/ inter6bank loans/ personal loans/ to name 7ust a few. If you need these broken down by residence/ nationality and industry/ which would mean for a basket of 82/ active currencies there would need to be at least 89: accounts )bviously you may not open these all at once/ but over a period you will accumulate many accounts and their administration would reuire a lot of effort. In T24 the transaction data is used to feed the 0eneral ,edger/ this is accomplished by tell tellin ing g T2 T24 4 how how you wish wish to anal analys ysee the the data data.. )ne )ne of the the firs firstt file filess set6 set6up up on impl implem emen enta tati tion on is the the ()$!),IAT#.()$ / whic which h has has 7ust 7ust two two reco record rdss vi<. vi<. =ere you you spec specif ify y wher wheree T2 T24 4 sear searche chess for for the the ASSET&LIAB ASSET& LIAB and PROFI PROFIT&LOSS T&LOSS . =ere reuired data such as Industry code/ $ationality/ $ationality/ and %esidence. )nce this file and the application parameters are in place/ T24 is ready to create and maintain a 0eneral ,edger. !ee the %eporting section of the *ser 0uide for more details on setting up the (%1 system in T24 .
CONSOLI DATE. ASST. LI ABfil e This is easier to explain in an example/ as the examples below should prove/ but in essence consider this as a record in a simple database. The key is decided by T24 when the underlying transaction is entered. In its simplest form it could represent 7ust one A(()*$T where A(()*$T where the conditions for the accountare uniue >e.g. you only have one Albanian ,ek current account for a "exican national who is a resident of Australia?. The record has details of the debit balance or credit balance in the account currency together with the local euivalent and the last movements and the total accruals for the matching accounts. $ow consider we want to report all debit balances for accounts/ acco unts/ we can simply sum the records in local currency or by account currency. In reality we would report them by account type; industry; sector and so on. The same concept is used when the transaction is a "oney "arket deal instead of an account.
As mentioned earlier/ T24 does not reuire 0eneral ,edger accounts/ so how does it maintain a 0eneral ,edger system5 In order to understand this let us consider the problems in systems that use 0eneral ,edger accounts. An account must be opened in each currency you deal in. 1or transactio transactions ns such as loans you may have many different different types such as corporate loans/ inter6bank loans/ personal loans/ to name 7ust a few. If you need these broken down by residence/ nationality and industry/ which would mean for a basket of 82/ active currencies there would need to be at least 89: accounts )bviously you may not open these all at once/ but over a period you will accumulate many accounts and their administration would reuire a lot of effort. In T24 the transaction data is used to feed the 0eneral ,edger/ this is accomplished by tell tellin ing g T2 T24 4 how how you wish wish to anal analys ysee the the data data.. )ne )ne of the the firs firstt file filess set6 set6up up on impl implem emen enta tati tion on is the the ()$!),IAT#.()$ / whic which h has has 7ust 7ust two two reco record rdss vi<. vi<. =ere you you spec specif ify y wher wheree T2 T24 4 sear searche chess for for the the ASSET&LIAB ASSET& LIAB and PROFI PROFIT&LOSS T&LOSS . =ere reuired data such as Industry code/ $ationality/ $ationality/ and %esidence. )nce this file and the application parameters are in place/ T24 is ready to create and maintain a 0eneral ,edger. !ee the %eporting section of the *ser 0uide for more details on setting up the (%1 system in T24 .
CONSOLI DATE. ASST. LI ABfil e This is easier to explain in an example/ as the examples below should prove/ but in essence consider this as a record in a simple database. The key is decided by T24 when the underlying transaction is entered. In its simplest form it could represent 7ust one A(()*$T where A(()*$T where the conditions for the accountare uniue >e.g. you only have one Albanian ,ek current account for a "exican national who is a resident of Australia?. The record has details of the debit balance or credit balance in the account currency together with the local euivalent and the last movements and the total accruals for the matching accounts. $ow consider we want to report all debit balances for accounts/ acco unts/ we can simply sum the records in local currency or by account currency. In reality we would report them by account type; industry; sector and so on. The same concept is used when the transaction is a "oney "arket deal instead of an account.
Figure 1 - Consolidate Asset Liabilities screen Note: !ome asset types are contingent and reported off balance sheet/ whereas others are non6 contingent. The (%1 types/ which we will be referring to/ are detailed in the %eporting *ser 0uide
CONSOLI DATE. PRFT. LOSSfil e !imilar in concept and use to the ()$!),IAT#.A!!T.,IA- / this file records the balance and movements based on the +', categories. Again when building the 0eneral ,edger we can sum records or report them based on our reuired decisions. 1or example income earned on current accounts by industry.
Figure 2 - Consolidate Profit Loss screen
CRBExa mpl es Accountbasedexampl e An A(()*$T is opened and an entry is passed creating a debit balance/ several days pass and daily accruals are passed to reflect the overdraft interest being calculated. The entries would be •
@
alue 28 Apr 8BBC
!T"T.#$T%&
(redit Account
$ostro *! 899/999.99cr
!T"T.#$T%&
ebit Account
(ustomer *! 899/999.99dr
•
@
After the first few days
uring the ()- process T24 will create two records with (%1 types of CREDIT >for the $ostro account? and DEBIT >for the customer account? respectively. Accruals for the overdrawn customer account are raised by T24 creating (AT#0.#$T%&
(redit to +', category Interest *! 89.99cr earned
%#.()$!),.!+#(.#$T%&
•
@
ebit to Interest #arned *! 89.99 dr not (ollected
At "onth end
At application of interest and charges the following entries are raised !T"T.#$T%&
ebit (ustomer Account *! 899.99dr
%#.()$!),.!+#(.#$T%&
(redit to Interest #arned *! not (ollected 899.99cr
!o during the accrual period the ()$!),IAT#.A!!T.,IA- record will show the balance as a DEBIT with the accrual increasing from *! 89.99 up to *! 899.99 at application time when it will be cleared by the payment from the client/ thus making the new debit balance *! 899/899.99 . The +', balance will be reflected on the ()$!),IAT#.+%1T.,)!! increasing from day one until it is left with the *! 899.99 as actual income received.
Tr ansact i onbasedexampl e De agree >on the 29 April? to take on deposit a *! 8million "oney "arket contract from 28 April to 2E April 8BBC. •
@
)n the transaction date 29 April 8BBC
%#.()$!),.!+#(.#$T%&
•
@
(redit to (ontingent/ type *! 8million cr FORWARDCR for
)n alue ate 28 April 8BBC
%#.()$!),.!+#(.#$T%&
ebit to (ontingent/ type *! 8million cr FORWARDCR for
$ow the contingent is cleared we raise the liability entry. !T"T.#$T%&
ebit client account
*! 8million dr
%#.()$!),.!+#(.#$T%&
(redit to liability/ type *! 8million
LIVECR
•
@
for
cr
uring the life of the contract accruals will be created.
(AT#0.#$T%&
ebit to +', category *! 8999.99 Interest +aid >E2999? cr
%#.()$!),.!+#(.#$T%&
(redit +ayable
to
Interest *! 8999.99 dr
The same each day until maturity when the accruals will be cleared and the interest paid to the customer. •
@
"aturity ate
!T"T.#$T%&
(redit >prin.?
client
account *! 8million cr
!T"T.#$T%&
(redit >int.?
client
account *! 4999.99 cr
%#.()$!),.!+#(.#$T%&
ebit to liability/ type *! 8million dr LIVECR for
%#.()$!),.!+#(.#$T%&
ebit to liability/ type *! 4999.99 dr 52000 for
At the end of the process we have paid interest of *! 4999 which is reflected on the ()$!),IAT#.+%1T.,)!! record.
Fi duc i a r yAc count i ng Accounting entries are generated at various stages throughout the life of the contract. These are all contingent as the deposit and placement are off balance sheet items for the bank. 8? )rder *nplaced )nly forward entries are raised i.e. r
rawdown A'(
(r
+rincipal A'(
r
(ommission
>principal?
,iuidation >principal? >commission?
,iuidation A'( (r
Interest A'(
,iuidation >interest?
2? )rder +laced 1orward alued )rder (r
(%1 1D()$T(%
type >principal?
1orward alued +lacement r
(%1 1D()$T-
type >principal?
F? rawdown rawdown )rder r
rawdown A'(
>principal?
(r
(%1 type ()$T(%
>principal?
(ommission in Advance r
(ommission ,iuidation A'(
>commission?
(r
+G, +, Accr (omm
>commission?
$ote +, Accr (omm is a user6defined category on 1.+A%A"#T#% . rawdown +lacement r
(%1 type ()$T-
>principal?
(r
rawdown A'(
>principal?
4? (ommission in Arrears Accrual )rder r
(%1 type +, Accr >accrued commission? (omm
(r
+G, +, Accr (omm
E? Interest +ayment )rder
>accrued commission?
(r
Interest A'(
,iuidation >interest?
(ommission in Arrears on Interest r
(ommission ,iuidation A'(
(r
(%1 type (omm
>commission?
+, Accr >commission?
+lacement r
Interest A'(
,iuidation >interest?
r
(%1 type ()$T(%
(r
+rincipal A'(
H? "aturity )rder >principal?
,iuidation >principal?
(ommission in Arrears r
(ommission ,iuidation A'(
>commission?
(r
(%1 type ()$T-
>commission?
+lacement r
+rincipal A'(
,iuidation >principal?
(r
(%1 type ()$T-
>principal?
Let t er sofCr edi t De t a i l e dT r a deFi na nc ea cc ount i nge nt r i e s This section outlines the accounting entries that can be passed for each event. The section has been split into three. The first covers import letters of credit/ the second covers export letters of credit and the third covers charges.
(harges may be taken at any time but are shown here in a separate section to avoid repeating the information against each transaction. 1or each entry the following details are shown
The sign followed by the account group being updated.
#ntry type 6 !tmt/ (ateg or !pecial >see note below?.
Amount.
Transaction code >see note below?.
Asset type for !pecial entries.
The codes shown in the entry type column are as follows
!tmt 6 statement entries on the !T"T.#$T%& application.
(ateg 6 +G, entries on the (AT#0.#$T%& application.
!pecial 6 direct (%1 entries on the %#.()$!),.!+#(.#$T%& application.
*nder the transaction code column the following is shown
If the entry type is !pecial the transaction code is shown. If the entry type is !tmt or (ateg then one of the codes below will be shown. This indicates where the actual numeric transaction code will be obtained.
1or the following/ the transaction code will be taken from the ,(.+A%A"#T#% file
Figure 3 - Transaction Codes
1or the following/ the transaction code will be taken from the 1T.(=A%0#.T&+# or 1T.()""I!!I)$.T&+# record
Figure 4 - Transaction Codes
1or the contingent entries/ the single sided entry is shown. This has been done so that when the option for single sided contingent is used the entry shown will be the one raised. Dhere the option to have self6balancing contingents is taken then the opposite signed entry will be raised. The sign will be different and the asset type will have -, at the end otherwise the details will be the same. !pecial entries will always be raised as part of the (lose of -usiness processing. The !tmt and (ateg #ntries will either be raised online or as part of the (lose of -usiness. etailed below are examples of the accounting movements the system generates in respect of the various types of letter of credit and documentary collection transactions. The examples only indicate the basic A(()*$T movements. (redit entries to J+rofit and ,ossJ account have not been shown. =owever/ to give an illustration of a transaction incorporating profit and loss entries please refer to export credit item J!ight +aymentJ.
I mpor tl et t er sofcr edi t s etailed below are the entries generated for the various types of imports in the date of input or value date.
I ssueofani mpor tl e t t erofcr edi t
An ,( is issued for 8 million (redit J)utstanding (redit *nusedJ !pecial 8/999/999
$#D
I!!*#
Amendmentofani mpor tl et t erofcr edi t
A letter of credit ,( value is increased by 82E/999 (redit J)utstanding (redit *nusedJ !pecial 82E/999 889/999 decrease an ,( value 6
I$(
I!!*#
ebit J)utstanding (redit *nusedJ !pecial 889/999
#(
I!!*#
Si ghtpa y me ntunde ra ni mpor tl e t t e ro fc r e di t
)n the value date a drawing for F99/999 is paid ebit J)utstanding (redit *nusedJ !pecial F99/999
,IK
I!!*#
The following entries will always be raised online. (redit nostro for payment to the remitting bank/ beneficiary or customer !tmt F99/999 +A&(% ebit customer account for whom letter of credit was opened. !tmt F99/999 +A&%
UsanceAccept ance
A drawing for 899/999 payable in B9 days is accepted. )n day of notification of acceptance received ebit Joutstanding credit unusedJ. !pecial 899/999
,IK
ebit Jcustomer3s liabilities for acceptanceJ. !pecial 899/999 $#D
I!!*#
A(+T()$T%A
(redit Joutstanding acceptancesJ !pecial 899/999 $#D A(+T-A$L or JAcceptances executed by =ead )ffice and branchesJ !pecial 899/999 $#D A(+T=) )r JAcceptances executed by subsidiariesJ !pecial 899/999 $#D A(+T!*-! )n the expiry date of B9 ays (redit J(ustomer3s liabilities for acceptanceJ.
!pecial
899/999
"AT
A(+T()$T%A
ebit J)utstanding acceptancesJ !pecial 899/999 $#D A(+T-A$L or JAcceptances executed by =ead )ffice and branchesJ !pecial 899/999 $#D A(+T=) )r JAcceptances executed by subsidiariesJ !pecial 899/999 $#D A(+T!*-! The following entries will be raised online if the status is changed to "A online. )therwise entries will be raised as part of the (lose of -usiness processing. (redit nostro through which payment will be made to the other bank. !tmt 899/999 +A&(% ebit customer account for whom the letter of credit was opened. !tmt 899/999 +A&%
Si ghtcol l ect i on-pai d
A drawing for FE9/999 payable at sight sent for collection'acceptance by the customer for whom the letter of credit was opened. )n day sent for collection (redit Items sent for collectionJ !pecial FE9/999
$#D
(),,
)n day sent for collection if it were to be under Trust (redit Items sent for collectionJ !pecial FE9/999
$#D
ebit J)utstanding credit unusedJ. !pecial FE9/999
,IK
I!!*#
,IK
I!!*#
T%(),,
)n day payment received ebit J)utstanding credit unusedJ. !pecial FE9/999
ebit JItems sent for collectionJ !pecial FE9/999
+A&
(),,
)n day payment received if the documents were under Trust ebit JItems sent for collectionJ !pecial FE9/999
,IK
T%(),,
The following entries will always be raised online. (redit nostro through which payment will be made to the other bank. !tmt FE9/999 +A&(% ebit customer account for whom the letter of credit was opened. !tmt FE9/999 +A&%
Si ghtcol l ect i on-notpai d
A drawing for 22E/999 payable at sight is sent for collection to the customer for whom the letter of credit was opened and it is not paid. )n day sent for collection (redit JItems sent for collectionJ !pecial 22E/999
$#D
(),,
)n day sent for collection documents under Trust (redit JItems sent for collectionJ !pecial 22E/999
$#D
ebit J)utstanding credit unusedJ. !pecial 22E/999
,IK
T%(),,
I!!*#
)n day notice of non6payment is received ebit JItems sent for collectionJ !pecial 22E/999
$(+
)n day the documents under Trust is re7ected ebit Items sent for collectionJ
(),,
!pecial
22E/999
(redit J)utstanding credit unusedJ. !pecial 22E/999
,IK
T%(),,
%#
I!!*#
Us anc ec ol l e ct i on-a cc ept e dorpa i d
A drawing for 8E9/999 payable in B9 days is sent for collection to the customer for whom a letter of credit was opened and is accepted or paid. )n day sent for collection (redit JItems sent for collectionJ !pecial 8E9/999
$#D
(),,
)n day sent for collection if the documents were under Trust (redit JItems sent for collectionJ !pecial 8E9/999
$#D
ebit J)utstanding credit unusedJ. !pecial 8E9/999
,IK
T%(),,
I!!*#
If only payment received on after payment date the process as for a sight collection paid. )therwise if acceptance received before payment date then process as follows. )n day acceptance received ebit JItems sent for collectionJ !pecial 8E9/999
+A&
(),,
ebit J)utstanding credit unusedJ. !pecial 8E9/999
,IK
I!!*#
ebit J(ustomer3s liabilities for acceptanceJ. !pecial 8E9/999 $#D A(+T()$T%A (redit J)utstanding acceptancesJ !pecial 8E9/999 $#D A(+T-A$L or JAcceptances executed by =ead )ffice and branchesJ
!pecial 8E9/999 $#D )r JAcceptances executed by subsidiariesJ !pecial 8E9/999 $#D
A(+T=) A(+T!*-!
)n day acceptance received if the documents were under Trust ebit JItems sent for collectionJ !pecial 8E9/999
,IK
T%(),,
ebit J(ustomer3s liabilities for acceptanceJ. !pecial 8E9/999 $#D A(+T()$T%A (redit J)utstanding acceptancesJ !pecial 8E9/999 $#D A(+T-A$L or JAcceptances executed by =ead )ffice and branchesJ !pecial 8E9/999 $#D A(+T=) )r JAcceptances executed by subsidiariesJ !pecial 8E9/999 $#D A(+T!*-! )n the expiry date of B9 ays (redit J(ustomer3s liabilities for acceptanceJ. !pecial 8E9/999 "AT A(+T()$T%A ebit J)utstanding acceptancesJ !pecial 8E9/999 $#D A(+T-A$L or JAcceptances executed by =ead )ffice and -ranchesJ !pecial 8E9/999 $#D A(+T=) )r JAcceptances executed by !ubsidiariesJ !pecial 8E9/999 $#D A(+T!*-! The following entries will be raised online if the status is changed to "A online/ otherwise entries will be raised as part of the (lose of -usiness processing. (redit nostro through which payment will be made to the other bank. !tmt 8E9/999 +A&(% ebit customer account for whom the letter of credit was opened. !tmt 8E9/999 +A&%
Us anc ec ol l e ct i on-nota cc ept e dorpa i d
A drawing for 8CE/999 payable in B9 days is sent for collection to the customer for whom the letter of credit was opened and it is not accepted or paid. )n day sent for collection (redit JItems sent for collectionJ !pecial 8CE/999
$#D
(),,
)n day sent for collection if it were under Trust (redit JItems sent for collectionJ !pecial 8CE/999 ebit J)utstanding credit unusedJ. !pecial 8CE/999
$#D
T%(),,
,IK
I!!*#
)n day notice of non6payment'acceptance is received ebit JItems sent for collectionJ !pecial 8CE/999
$(+
(),,
)n day notice of non6payment'acceptance is received if it were under Trust ebit Items sent for collectionJ !pecial 8CE//999
,IK
T%(),,
(redit J)utstanding credit unusedJ. !pecial 8CE/999
%#
I!!*#
Mat ur i t yofl et t erofcr edi t
Dhen a ,( matures with a balance of 2E9/999 yet to be drawn/ then on the maturity date ebit J)utstanding credit unusedJ. !pecial 2E9/999
Col l ect i onDocument s
)n day documents are received (redit JItems sent for (ollectionJ
"AT
I!!*#
!pecial
899/999
$#D
(),,
)n day documents are received and handled under Trust (redit JItems sent for (ollectionJ !pecial 899/999
$#D
T%(),,
)n day documents under Trust is accepted (redit JItems sent for (ollectionJ !pecial 899/999 ebit MItems sent for (ollectionN !pecial 899/999
$#D
(),,
,IK
T%(),,
)n day documents under Trust is re7ected ebit JItems sent for (ollectionJ !pecial 899/999
#(
T%(),,
)n day documents are paid ebit JItems sent for (ollectionJ !pecial 899/999
,IK
(),,
Expor tl et t er sofcr edi t The split for =ead )ffice or subsidiaries will be obtained from the sector code of the customer for bank for whom we are processing the letter of credit.
Requestt oadvi seonl y
%euested to advise a letter of credit which has been opened for 2 million. )n the day the letter of credit is input to T24 (redit J,( advisedJ !pecial
2/999/999
$#D
AI(#
Requestt oconfir m
%euested to confirm a letter of credit/ which has been opened for 8.E million. )n the day the letter of credit is input to T24
(redit J)utstanding credit unusedJ !pecial 8/E99/999
$#D
()$1I%"
Requestt oopen
A letter of credit is issued for 8 million. )n the day it is input to T24 (redit J)utstanding credit unusedJ !pecial 8/999/999
$#D
)+#$
Re que stt oc ha ngeane x por tl e t t e rofc r e di tf r om a dv i s edt oc onfir me d
De are originally reuested to advice a letter of credit for 2.E million. De are subseuently asked to confirm the same letter of credit. )n the day the original letter of credit is input to T24 (redit J,( advisedJ !pecial
2/E99/999
$#D
AI(#
)n the day the letter of credit is changed to confirm ebit J,( advisedJ !pecial
2/E99/999
()$
AI(#
(redit J)utstanding credit unusedJ !pecial 2/E99/999
A
()$1I%"
Ame ndme ntofa ne x por tl e t t e rofc r e di t
A letter of credit is increased by 82E/999. )n the day of increase (redit J,( advisedN or J)utstanding credit unusedJ !pecial 82E/999 I$( AI(#'()$1I%"')+#$ A letter of credit is decreased by 889/999 on the day of decrease ebit J,( advisedJ or J)utstanding credit unusedJ !pecial 889/999 AI(#'()$1I%"')+#$
Dhen the ,etter of (redit is partially confirmed for 8/999/999 If the )riginal entry were (redit J,( advisedJ !pecial
2/E99/999
$#D
AI(#'()$1I%"
It would now appear as (redit J,( advisedJ !pecial (redit J,( advisedJ !pecial ebit J,( advisedJ !pecial
8/E99/999
$#D
AI(#
8/999/999
$#D
()$1I%"
2/E99/999
%#
AI(#'()$1I%"$
Si ghtpa yme ntunde ra ne xpor tl e t t e rofc r e di t
A drawing for F99/999 payable at sight is made then on the day payment is made ebit J)utstanding credit unusedJ !pecial F99/999 ,IK
AI(#'()$1I%"
A drawing for F99/999 payable at sight is made where the available confirmed portion under a partially confirmed ,( is 299/999/ then on the day payment is made ebit J)utstanding credit unusedJ !pecial 299/999 ebit J)utstanding credit unusedJ !pecial 899/999
,IK
()$1I%"
,IK
AI(#
These entries will always be raised online. (redit account of customer reuesting payment. !tmt F99/999
+A&(%
ebit nostro through which payment will be received from the other bank. !tmt F99/999 +A&% $ote A message >!wift/ telex/ etc.? will be sent to this bank to advise that payment has been made under a letter of credit and reuesting reimbursement.
Us anc ea cc ept a nc eofa ne xpor tl e t t e rofc r e di t
A drawing for 899/999 payable in B9 days is accepted. )n day of acceptance ebit J)utstanding credit unusedJ. !pecial 899/999 ,IK
()$1I%"'AI(#
ebit J(ustomer3s liabilities for acceptanceJ. !pecial 899/999 $#D A(+T()$T%A (redit J)utstanding acceptancesJ !pecial 899/999
$#D
A(+T
A drawing for 899/999 payable in B9 days is accepted where the confirmed portion available under a +artially confirmed ,( is CE/999. )n day of acceptance ebit J)utstanding credit unusedJ. !pecial CE/999 ,IK ()$1I%" ebit J)utstanding credit unusedJ. !pecial 2E/999 ,IK AI(# ebit J(ustomer3s liabilities for acceptanceJ. !pecial 899/999 $#D A(+T()$T%A (redit J)utstanding acceptancesJ !pecial 899/999
$#D
A(+T
)n the expiry date of B9 ays (redit J(ustomer3s liabilities for acceptanceJ. !pecial 899/999 "AT A(+T()$T%A ebit J)utstanding acceptancesJ !pecial 899/999
"AT
A(+T
The following entries will be raised online if the status is changed to "A online. )therwise entries will be raised as part of the (lose of -usiness processing.
(redit account of customer reuesting payment. !tmt 899/999
+A&(%
ebit nostro through which payment will be received from the other bank. !tmt 899/999 +A&%
Di scountofownaccept ance( wi t houtal oadamount )
A drawing for 299/999 is accepted payable in B9 days and is then presented for discount. )n day of acceptance ebit J)utstanding credit unusedJ. !pecial 299/999
,IK
I!!*#
ebit J(ustomer3s liabilities for acceptanceJ. !pecial 299/999 $#D A(+T()$T%A (redit J)utstanding acceptancesJ !pecial 299/999
$#D
A(+T
)n day of discounting assume this to be the same as acceptance day and that the amount for discount is CE per day/ which gives a total of H/CE9 over the B9 days The special entries will be raised as part of the (lose of -usiness/ but the !tmt entry will be raised online. $ote/ for the J)wn acceptances discountedJ and Jiscount received not yet earnedJ the (%1 key will need to be created using the customer to whom the discount has been given. ebit J)wn acceptances discountedJ. !pecial 299/999 $#D (redit Jiscount received not yet earnedJ. !pecial H/CE9 (A+
,I#-
iscount category from ,( +arameter.
(redit Account of customer reuest discount or suspense account. !tmt 8BF/2E9 I!+&
At the first month end as part of the (lose of -usiness run an accrual will be made for the current month assuming 89 days in month 8 ebit Jiscount received not yet earnedJ. !pecial CE9 A((
iscount category from ,( +arameter.
(redit profit and loss for discount earned using the discount category code from ,(.+A%A"#T#%. (ateg CE9 I!+, At the other two month ends as part of the (lose of -usiness run an accrual will be made for the current month assuming F8 days in each of the months ebit Jiscount received not yet #arnedJ. !pecial A(( 2/F2E
iscount category from ,( +arameter.
(redit +rofit and loss for discount earned using the discount category code from ,(.+A%A"#T#%. (ateg 2/F2E I!+, )n day expiry of B9 ays These entries will be raised as part of the (lose of -usiness run (redit J(ustomer3s liabilities for acceptanceJ. !pecial 299/999 "AT A(+T()$T%A ebit J)utstanding acceptancesJ !pecial 299/999
"AT
ebit Jiscount received not yet earnedJ. !pecial 8/FE9 A((
A(+T
iscount category from ,( +arameter
(redit +G, for discount earned using the category code from ,(.+A%A"#T#%. (ateg 8/FE9 I!+, (redit J)wn acceptances discountedJ. !pecial 299/999 "AT
,I#-
ebit nostro through which payment will be received from the other bank. !tmt 299/999 +A&% iscount of own acceptance >with a load amount? . A drawing for 499/999 is accepted payable in B9 days and is then presented for discount. )n day of acceptance ebit J)utstanding credit unusedJ. !pecial 499/999
,IK
I!!*#
ebit J(ustomer3s liabilities for acceptanceJ. !pecial 499/999 $#D A(+T()$T%A (redit J)utstanding acceptancesJ !pecial 499/999
$#D
A(+T
)n day of discounting assume this to be the same as acceptance day and that the amount for discount works out at being 8E9 per day giving a total of 8F/E99 over the B9 days and the extra load amount is E9 per day giving a total of 4/E99 over the B9 days The special entries will be raised during (lose of -usiness/ but the !tmt entry will be raised online. $ote for the J)wn acceptances discountedJ and Jiscount received not yet earnedJ the (%1 key will need to be created using the customer to whom the discount has been given. ebit J)wn acceptances discountedJ. !pecial 499/999 $#D (redit Jiscount received not yet earnedJ. !pecial 8F/E99 (A+
,I#-
iscount (ategory from ,( +arameter.
(redit Jiscount >load? received not yet earnedJ. !pecial (A+ ,oad (ategory from ,( 4/E99 +arameter. (redit account of customer reuest discount or suspense account. !tmt F:2/999 I!+&
At the first month end as part of the (lose of -usiness run an accrual will be made for the current month assuming 89 days in month 8 ebit Jiscount received not yet earnedJ. !pecial A(( 8/E99
iscount category from ,( +arameter.
(redit profit and loss for discount earned using the discount category code from ,( +arameter. (ateg 8/E99 I!+, ebit Jiscount >load? received not yet earnedJ. !pecial A(( ,oad category from ,( E99 +arameter. (redit profit and loss for discount >load? earned using the load category code from ,( +arameter. (ateg E99 I!+, At the other two month ends as part of the (lose of -usiness run an accrual will be made for the current month assuming F8 days in each of the months ebit Jiscount received not yet earnedJ. !pecial A(( 4/HE9
iscount category from ,( +arameter.
(redit +rofit and loss for discount earned using the discount category code from ,( +arameter. (ateg 4/HE9 I!+, ebit Jiscount >load? received not yet earnedJ. !pecial A(( ,oad category from ,( 8/EE9 +arameter. (redit +rofit and loss for discount >load? earned using the load category code from ,( +arameter. (ateg 8/EE9 I!+, )n day of expiry/ of B9 ays/ these entries will be raised as part of the (lose of -usiness run (redit J(ustomer3s liabilities for acceptanceJ.
!pecial
499/999
"AT
ebit J)utstanding acceptancesJ !pecial 499/999
"AT
ebit Jiscount received not yet earnedJ. !pecial 2/C99 A((
A(+T()$T%A
A(+T
iscount category from ,( +arameter.
(redit profit and loss for discount earned using the discount category code from ,( +arameter. (ateg 2/C99 I!+, ebit Jiscount >load? received not yet earnedJ. !pecial A(( ,oad category from ,( B99 +arameter. (redit profit and loss for discount >load? earned using the load category code from ,( +arameter. (ateg B99 I!+, (redit J)wn acceptances discountedJ. !pecial 499/999 "AT
,I#-
ebit nostro through which payment will be received from the other bank. !tmt 499/999 +A&%
Si ghtcol l ect i on–pai d
A drawing for FE9/999 payable at sight sent for collection to the -ank that opened the ,( and payment is made. )n day sent for collection (redit JItems sent for collectionJ !pecial FE9/999 )n day payment received ebit J)utstanding credit unusedJ.
$#D
(),,
!pecial
FE9/999
,IK
I!!*#
ebit JItems sent for collectionJ !pecial FE9/999
+A&
(),,
The following entries will always be raised online (redit account of customer reuesting payment. !tmt FE9/999
+A&(%
ebit nostro through which payment was received from the other bank. !tmt FE9/999 +A&%
Si ghtcol l ect i on-notpai d
A drawing for 22E/999 payable at sight is sent for collection to the bank that opened the letter of credit but it is not paid. )n day sent for collection (redit JItems sent for collectionJ !pecial 22E/999
$#D
(),,
)n day notice of non6payment is received ebit JItems sent for collectionJ !pecial 22E/999
$(+
(),,
Si ghtcol l ect i on-pai dandpaymentmadeunderr eser ve
A drawing for FE9/999 payable at sight sent for collection to the bank that opened the letter of credit. +ayment is made to the exporter under reserve and payment is received from the opening bank. )n day sent for collection (redit JItems sent for collectionJ !pecial FE9/999
$#D
ebit J+ayments made under reserveJ !pecial FE9/999 $#D
(),,
+A&%#!
The following entry will always be raised online (redit customer presenting the drawing. !tmt
FE9/999
%#!(%
)n day payment received ebit J)utstanding credit unusedJ. !pecial FE9/999
,IK
I!!*#
ebit JItems sent for collectionJ !pecial FE9/999
+A&
(),,
(redit J+ayments made under reserveJ !pecial FE9/999 +A&
+A&%#!
The following entry will always be raised online ebit nostro through which payment was received from the other bank. !tmt FE9/999 +A&%
Si ghtcol l ect i on-notpai d
A drawing for 22E/999 payable at sight is sent for collection to the bank that opened the ,(. +ayment is made to the exporter under reserve and the payment is not received from the opening bank. )n day sent for collection (redit JItems sent for collectionJ !pecial 22E/999
$#D
(),,
ebit J+ayments made under reserveJ !pecial 22E/999 $#D
+A&%#!
The following entry will always be raised online (redit customer presenting the drawing. !tmt )n day of notice of non6payment is received
22E/999
%#!(%
ebit JItems sent for collectionJ !pecial 22E/999
$(+
(redit J+ayments made under reserveJ !pecial 22E/999 $(+
(),,
+A&%#!
The following entry will always be raised online ebit customer presenting the drawing. !tmt 22E/999 %#!%
Us anc ec ol l e ct i on-a cc ept e dorpa i d
A drawing for 8E9/999 payable in B9 days is sent for collection to the customer for whom the letter of credit was opened and is accepted or paid. )n day sent for collection (redit JItems sent for collectionJ !pecial 8E9/999
$#D
(),,
If the payment is received on or after the payment date then accounting is the same as for a sight collection paid. )therwise if the acceptance is received before payment date then process as follows. )n day acceptance received ebit JItems sent for collectionJ !pecial 8E9/999
+A&
(),,
ebit J)utstanding credit unusedJ. !pecial 8E9/999
,IK
I!!*#
ebit J(ustomer3s liabilities for acceptanceJ. !pecial 8E9/999 $#D A(+T()$T%A (redit J)utstanding acceptancesJ !pecial 8E9/999 )n the expiry date of B9 ays
$#D
A(+T
(redit J(ustomer3s liabilities for acceptanceJ. !pecial 8E9/999 "AT A(+T()$T%A ebit J)utstanding acceptancesJ !pecial 8E9/999
$#D
A(+T
The following entries will be raised online if the status is changed to "A online. )therwise entries will be raised as part of the (lose of -usiness processing. (redit customer reuesting payment. !tmt
8E9/999
+A&(%
ebit nostro through which payment was received from the other bank. !tmt 8E9/999 +A&%
Us anc ec ol l e ct i on-nota cc ept e dorpa i d
A drawing for 8CE/999 payable in B9 days is sent for collection to the customer for whom the letter of credit was opened and is not accepted'paid. )n day sent for collection (redit JItems sent for collectionJ !pecial 8CE/999
$#D
(),,
)n day notice of non6payment'acceptance is received ebit JItems sent for collectionJ !pecial 8CE/999
$(+
(),,
Payment sunderr eser ve
1or export letter of credit it is possible that payment can be made to the customer at the time the documents are presented. This payment is made under reserve meaning that if there is any problem the money can be claimed back. 1or sight collections the entries that will be raised are shown. !imilar processing can happen in *sance collections.
Mat ur i t yofl et t erofcr edi t
Dhen a letter of credit matures with a balance of 2E9/999 yet to be drawn/ then on the maturity date ebit J)utstanding credit unusedJ. !pecial 2E9/999
"AT
I!!*#
Char ges Char gesappl i edi mmedi at el yandnotaccr ued
Dhere a charge for E99 is applied directly and not accrued then the following entries are raised on the date of the charge. These entries will be raised online/ when the charges are entered. ebit (ustomer paying !tmt
1T% E99
(redit profit and loss using the category code from the charge >see note 8? (ateg 1T(% E99
Char gesappl i edi mmedi at el yandamor t i sed
Dhere a charge for H99 is applied directly and accrued over F months then the following entries are raised. At time of charge >stmt entry raised online/ special entry raised as part of the (lose of -usiness run? ebit (ustomer paying !tmt (redit J(harges received not yet earnedJ. !pecial (A+ H99
H99
1T%
(ategory code from charge >see note 2?
At each month end/ as part of the (lose of -usiness run/ assuming charges accrued over three eual months
ebit J(harges received not yet earnedJ. !pecial A(( 299
(ategory code from charge >see note 2?
(redit profit and loss for charges using the category code from the charge >see note 2? (ateg A"%T 299
Char gescl ai medf r om benefici ar yandpai d
Dhere charges for C99 are claimed from some one else then the following entries are raised. At time of claiming charge >(ateg raised online/ special during (lose of -usiness? ebit J(harges claimedJ !pecial
(," C99
(ategory code for claiming charges >,(.+A%A"#T#%.?
(redit profit and loss for the charges using the category code for charge >see note 8? (ateg (#$(+, C99 Dhen charges are paid >!tmt raised online/ special during (lose of -usiness? (redit J(harges claimedJ !pecial
+A& C99
ebit customer paying charge !tmt C99
(#$(+&
(ategory code claiming charges +A%A"#T#%?
(ustomer charge.
for >,(.
paying
Char gescl ai medf r om benefici ar yandnotpai d
Dhere charges for :99 are claimed from some one else but are not paid. At time of claiming charge >(ateg raised online/ special during (lose of -usiness?
ebit M(harges (laimedN !pecial :99 (,"
(ategory code for claiming charges >,(.+A%A"#T#%? (redit profit and loss for the charges using the category code for charge >see note 8? (ateg :99 (#$(+, (ategory code for charge Dhen charges are paid >(ateg raised online/ special in (lose of -usiness? (redit M(harged claimedN !pecial :99 $)+
(ategory code for claiming charges >,(.+A%A"#T#%? ebit profit and loss for the charges using the category code for charge >see note 8? (ateg :99 (#$(+, (ustomer paying charge
Not esf orchar gesaccount i ng
Note 1
The 1T.(=A%0#.T&+# and 1T.()""I!!I)$.T&+# allow for either a (AT#0)%& >+',? or an internal A(()*$T to be issued. This document has shown the category being used/ but it can easily be an internalaccountin which case an !tmt type of entry will be raised but the amount/ sign and T%A$!A(TI)$ code will be the same.
Note 2
The 1T.(=A%0#.T&+# and 1T.()""I!!I)$.T&+# allow for either a (AT#0)%& >+',? or an internal A(()*$T to be issued. Dhere charges are being accrued then only the (AT#0)%& option can be used for the particular charge.
T el l erAc count i ng It is possible to raise entries through the T#,,#% application that have exposure splits on them. This has been illustrated with an example shown below (ustomer A makes a deposit for O82/999 of which O4/999 in cash and a O8/999 (ashier3s (heck is made immediately available. The transactions made are described as under
Figure 5 - Ea!"le Teller Accounting
The value date on all above transactions must be set to the same value. ,et us assume that the value date for all of the transactions made is the 2B'9H'B:/ the same as the booking date for the transactions. Assuming that these are the only deposits made to the account/ this would cause the following balances on the account for the following days
Figure # - Ea!"le Account $alancing %a&s
If on "onday >the E th business day from the first deposit? a deposit is made for a 8E/999 value dated the 9H'9C'B: of which all checks are drawn locally and all items are floated3 for F days as shown under
Figure ' - Ea!"le Teller Account
The above table would be amended to as show under
Figure ( - Ea!"le Account $alancing %a&s
Ac count i ngf orr e va l uat i on Asse ta ndLi abi l i t yr e val uat i on
The total current asset and liability position for each foreign currency is revalued at spot rate/ and the profit or loss is posted as specified in the A, section of the %#A,*ATI)$.+A%A"#T#% record.
Dealr e val uat i on
%evaluation of 1oreign #xchange deals is covered in the 1oreign #xchange section.
Dhere contracts other than 1oreign #xchange generate forward 1P positions and conseuent revaluation profit and loss they can be revalued separately. The reuirements can be specified in %#A,*ATI)$.+A%A"#T#% .
REVALUATI ON. PARAMETER
Figure ) - *e+aluation Para!eter ,n"ut screen
Ac count i nge nt r i e sf orr e va l ua t i on
The revaluation is calculated on spot or rebate basis as specified for the application in the parameter record. Asset',iability revaluation is specified in the revaluation parameters as a special application.
Figure 1 - Accounting Entries for re+aluation
St a t e me ntPr i ntMa sk i ng I nt r oduct i on
It is now possible to mask accounting entries/ where entries have either been posted incorrectly and had to be reversed out/ or other financial postings that customers do not want on their statements. "asking is also necessary because some customers reconcile directly against the statements they receive from the banks and unexpected entries can cause confusion to their reconciliation. This is especially true when the statement is delivered electronically and the customer uses it to reconcile internally within their computer systems. "asking will only apply to statements only. The entry will not be removed from the account and the transaction will not be deleted it/ it 7ust won3t show on the statement.
Set t i ngupt hest at ementmaski ng
A new field called "A!L.+%I$T has been added to the !T"T.#$T%& file/ which will indicate whether certain statement entries should be masked from printing/ or not. To update the "A!L.+%I$T field a new application called A(.+%I$T."A!L has been produced to allow users to manually go in and flag statement entries that customers do not want to see on their statements. The selection of entries to be masked for a particular account will be assisted by the provision of !T"T.#$T%&enuiries. )nce the statement entries have been captured into A(.+%I$T."A!L application/ the system will then perform routine validations on the selected entries/ firstly to ensure the integrity of the selected items and to also make sure that the net movement of the selected entries is
AC. PRI NT. MASK
As mentioned before/ the A(.+%I$T."A!L application has been produced to allow users to go in and manually flag certain statement entries that have to be omitted from customers3 statements. This section will show you how to set up an A(.+%I$T."A!L record and explain the rules and validations of the application.
Figure 11 - .tate!ent Entr& Print /as0ing ,n"ut screen
1irst of all run the application A(.+%I$T."A!L and capture and id which can be automatically generated by setting up an A*T).I.!TA%T record for A(.+%I$T."A!L and by also making sure that the application exists in the ()"+A$& record under the +0.A*T)".I . )nce you have captured the id you will be reuired to capture the account number of the customer and the current date in "A!L.AT# . #nter dates in #$K.!TA%T.AT# and #$K.#$.AT# . These dates are captured to ensure that statement entries that are to be masked fall within the start dates and end dates. If you do not enter any dates into these fields a default date of today will be captured in those fields. The "A!L field will indicate whether the statement entries should be masked and unmasked. &ou can capture either M&#!N or M$)N and is mandatory. The"AT(=#.T) field is used to capture all the statement entries you wish to mask or unmask/ however they must all be debit entries or all credit entries. &ou cannot mix debit and credit entries in the same field. The same applies to the "AT(=#.1%)" field. &ou can use !T"T.#$T%& enuiries to pick the entries you wish to select to update the relevant fields in !T"T.#$T%& . There is an example below that explains how to run the enuiries and to select/ copy and paste the relevant entries into the "AT(=#.T) and "AT(=#.1%)" fields.
Figure 12 - .T/T ENT* Enuir&
This is an example of all the statement entries that are associated with account number 9999998CCE. To bring up this list you have to run an enuiry on the !T"T.#$T%& application of all statements that belong to the particular account that you want to mask.
Figure 13 - ie .T/T ENT* screen
)nce you have found the statement entry that you wish to mask or unmask for printing on the enuiry list/ you then double click on the statement entry and the full record for the statement entry will then be displayed. &ou then highlight the statement entry id at the top of the record and right click on the mouse and copy the id. )nce you have copied the statement entry id/ you then go back to the running A(.+%I$T."A!L application/ move your mouse to either the "AT(=#.T) or "AT(=#.1%)" fields/ right click on them and then paste the id into the field and hit enter. )nce you hit enter/ the T).T)TA, and 1%)".T)TA, as well as the $#T.T)TA, fields will be updated with totals in the statement entry record. )nce again/ make sure that your "AT(=#.T) and "AT(=#.1%)" fields consist of either all debit or all credit entries.
