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Jethro LtdSmart Solutions ™


FINANCIAL ACCOUNTING & REPORTING IN T24

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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

TimelinessAll financial reports generated from the system, must be availablewhen needed

AccuracyAll financial reports must be accurate; e.g. the Gen ledger must bebalanced and all schedules must be readily available and reconcilablewith the GL position.

MeaningfulnessAll financial reports must be meaningful and easily understood; thereshould be no ambiguity in the output

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The reporting consolidation Module maintains the CONSOLIDATIONREPORTING BASE (CRB)from which financial reports such as theGeneral Ledger, Balance sheet, Profit & Loss, Central Bank reports areproduced.The module consist of two main components the UPDATE and the ReportPRODUCTION components.

There TWO main sources of transaction InputUSER/CUSTOMER INITIATED – These are mainly through thefollowing 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.ENTRYThis file contains Debit/Credit entries that are posted into all All accounts(both customer and internal accounts) on the system. A daily transaction fileACCT.ENT.TODAY is maintained as a transit file and cleared during COB ona daily basis.

• CATEG.ENTRYAll Profit & Loss entries are posted in this file; the entries are thenaggregated on the file CONSOLIDATE.PRFT.LOSS. There is no actualGeneral Ledger account for these entries. A daily transaction fileCATEG.ENT.TODAY is maintained as a transit file and cleared during COBon a daily basis.

• RE.CONSOL.SPEC.ENTRYAll entries on Contracts and other Special entries are posted in this file. Adaily transaction file CONSOL.ENT.TODAY is maintained as a transit fileand cleared during COB on a daily basis.


CONSOLIDATION PARAMETER

• T24 does not require General Ledger accounts to facilitate financialreporting, so how does it maintain a General Ledger system? Theproblem 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 byResidence, Nationality, Industry, you may require several accounts and theadministration 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 isaccomplished by telling T24 how the data should be analyzed. One of thefirst files setup on implementation is the CONSOLIDATE.COND, whichhas two records viz; ASSET&LIAB and PROFIT&LOSS.


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 createthe 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

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

RE.STAT.REP.LINEThis is the main engine for building each line on the chart of account. The tables usesparameters like category, DAO, Sector etc. This is where most formatting and developmenttake place.



ASSET AND LIABILITY PARAMETERS

FOUR FIXED PARAMETERS• APPLICATION ID – e.g AC, LD, MM, MD,

• CURRENCY MKT• POSITION TYPE• CURRENCY

TWELVE GENERAL PARAMETERSe.g. Category, Industry, Sector, DAO, Residence, Time,

Maximum Length of 65


PROFIT AND LOSS PARAMETER

ONE FIXED PARAMETERS – APPLICATION ID – PL

TWELVE GENERAL PARAMETERSe.g. Category, Industry, Sector, DAO, Residence, Time

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FILE STRUCTURECONSOLIDATE.ASST.LIAB

R8 MODEL BANK Consolidate Asset Liabilities SEE

CONSOL.KEY........ AC.1.TR.CHF.1001.1001.GB.....1000------------------------------------------------------------------------------1 APPLIC.ID......... AC2 CURRENCY.MARKET... 1 Currency Market3 POSITION.TYPE..... TR TRADING POSITION4 CURRENCY.......... CHF Swiss Franc5 CATEGORY.......... 1-001 Current Account6 SECTOR............ 1001 Individual7 RESIDENCE......... GB Great Britain12 INDUSTRY.......... 1000 Private Person (Name)17 DATE.LAST.UPDATE.. 07 JAN 200818. 1 TYPE........... CREDIT19. 1 BALANCE........ 10,000,000.0022. 1 LOCAL.BALANCE.. 8,431,703.20

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FILE STRUCTURECONSOLIDATE.PRFT.LOSS

R8 MODEL BANK Consolidate Profit Loss SEE

CONSOL.KEY........ PL.50000.6001.2001.60.US...------------------------------------------------------------------------------1 APPLIC.ID......... PL2 PLCATEGORY........ 50-000 ***Interest Expense3 PLPRODUCT......... 60014 PLSECTOR.......... 2001 Corporate5 PLDEPARTMENT...... 60 Risk Manager6 PLRESIDENCE....... US United States of America14 DATE.LAST.UPDATE.. 07 JAN 200815. 1 CURRENCY....... USD US Dollar16. 1 BALANCE........ -919.2617. 1 DEBIT.MOVEMENT. -306.41


REVALUATION ASSET AND LIABILITIES

At the end of each run and prior to the production of reports all non-contingentforeign currency records are revalued. This excludes all FORWARD Loans andDeposits.

The process involved revaluing each foreign currency by type. The total new localequivalent from all currency records with the same market and position type ischecked against the LOCAL.EQUIVALENT from the Assets and liabilities recordson the Position file . If there is a difference then the last record for the currency onthe Assets and Liability Consolidate file is adjusted by that amount.

Special Movement entries are raised for the amount of each revaluation basedupon settings in REVALUATION.PARAMETER

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A Practical and InteractiveSession on Chart of Account

Development


GL MISMATCH – DIAGNOSTICS AND RESOLUTION

ASSETS + LIABILITIES = 0 Double entry Accounting systemWhat is GL difference? Where the summation of Asset and Liabilities does notequal Zero

TOOLS TO IDENTIFY DIFFERENCESEB.SYSTEM.SUMMARYTRANS.JOURNALEB.JOURNAL.SUMMARY


CONTRACT BALANCE & CRF BALANCEWhen 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 BalanceBalance in the Consolidation Keys is the CRF Balance

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Date Trans Stmt Categ Spec Key/asst type

1st Oct 2007 Newcontract

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



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…DEBITLD.1.TR.USD.….51000


BALANCE FILES FOR VARIOUS APPLICATIONSDetails of the Balance file and lookup files for various applications:

Application Balance fileLookup File- Balances

Account Account AccountMoney Market (MM) LMM.ACCOUNT.BALANCES RE.LMM.BALANCESLoans and Deposits (LD) ACCBAL RE.LD.ACC.BALLetter of Credit (LC) LETTER.OF.CREDIT RE.CONTRACT.DETAILDrawings (DR) DRAWINGS DRAWINGSMortgage (MG) MG.BALANCES RE.MG.BALANCESPayment Dues (PD) PD.BALANCES RE.CONTRACT.BALANCESFiduciary (FID) FD.BALANCES RE.FD.BALANCESSwaps (SW) SWAP.BALANCES RE.CONTRACT.BALANCESForex (FX) FOREX RE.FOREX.OPTIONFRA FRA FRASecurities (SC) SC.TRADING.POSITION SC.TRADING.POSITIONMiscellaneous Deals (MD) MD.BALANCES RE.MD.BALANCES


Details of the Balance file and lookup files for variousapplications

Application Lookup File - Consol Keys

Account RE.CONSOL.ACCOUNTMoney Market (MM) RE.CONSOL.MMLoans and Deposits (LD) RE.CONSOL.LOANLetter of Credit (LC) RE.CONSOL.LCDrawings (DR) RE.CONSOL.LCMortgage (MG) RE.CONSOL.MGPayment Dues (PD) RE.CONSOL.PDFiduciary (FID) RE.CONSOL.FIDSwaps (SW) RE.CONSOL.SWAPForex (FX) RE.CONSOL.FOREXFRA RE.CONSOL.FRASecurities (SC) RE.CONSOL.SECMiscellaneous Deals (MD) RE.CONSOL.MD


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

Revaluation Error (- if foreign currency

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HOW IT HAPPENS?

GLDifference

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 PositionUpdate

Yes No Yes

RE.CONSOL.CONTRACT No Yes No


Analysis of MismatchTools used in Globus

General Ledger (GLSTD, MBGL…)RE.STAT.MISMATCH

RE.STAT.BAL.REC


Correction of MismatchOn finding the reason & fixing it:

Correct the Contract Balance

Correct the CAL through Accounting Entry(SPEC & STMT/CATEG Entries)


Correction of Accounting EntriesUpdate CONSOLIDATION KEY

Input CONSOL.ENT.TODAY entry

Raise RE.CONSOL.SPEC.ENTRY

Update the Consolidation Key

Update STMT / CATEG Entry

Input entries thru DC

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FILE STRUCTURESTMT.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

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