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CORE ACCOUNTING
CORE ACCOUNTING
The financial reporting in GLOBUS will use, whenever possible, a single base as source for report generation. This base is called the CENTRAL.REPORTING FILE ‘(CRF)’. Account balances, principal outstanding amounts in product files and any related amount fields such as interest reserves, accrued charges, commissions, etc. held in each individual product record will be consolidated into records held on the ‘CRF’.
These records will be organised by source application to limit regeneration (if required and based on change in consolidation parameters) to a single or all applications. The ‘CRF’ will be maintained (rather than regenerated) by updating with details of movements from each application. These movements will cover new and maturing deals, movement from Forward to Spot to Live, changes in static data. When these movements are not covered by a STATEMENT or CATEG entry record, then a SPECIAL consolidation entry is written out.
The consolidation records will, in addition to the consolidation key, hold a series of balance, total debit movement and total credit movement fields. The local currency equivalents are also held at the consolidation record level and will be revalued within the Asset and Liability revaluation process. The details are held on two files, one for Asset and Liability and another for Profit and Loss details. This is to allow for a different key structure for the two files. The Asset and Liability consolidation file key will be made up of four compulsory parameters and up to twelve additional parameters.
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- The four compulsory parameters are:
- System ID e.g. AC, FX, LD, MM, BD
- Currency Market
- Position Type
- Currency
- The four compulsory parameters are:
- The Profit and Loss consolidation file key will be made up of one compulsory parameter and up to twelve additional parameters.
The compulsory parameter is:
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- System ID = PL
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The file CONSOLIDATE.COND contains the details of the additional (up to twelve) variable fields to be used in the key for the consolidation records. There are two CONSOLIDATE COND records, one which contains the details for the Asset and Liability consolidation file while the other contains the details for the Profit and Loss consolidation file. These additional parameters can originate from a general file (presently limited to CUSTOMER) and/or from individual system’s own files. Any combination (composition) of general and specific file parameters is allowed.
It is also possible to combine parameters into groups by defining a number of specific values or a range to constitute a group (e.g. Industry Codes 1001 to 1500 become “Financial Institutions”). For Profit & Loss details it is possible to link to the Asset & Liability key and use any component from the A&L key as part of the Profit & Loss key. The composition of a key can be redefined at any time.
During the end of day process, the consolidation base will need to be regenerated by requesting the running of the appropriate batch process. In this case it might be necessary to also change the report line definitions in order to have the new key structure reflected in the report(s).
The consolidation key, at initial load or when the fields that feed the key are changed or at the regeneration of consolidation records in the CRF, will be written to the source product record. This allows efficient raising of consolidation movement entries in the daily consolidation process. Following are two full examples for the records you will find in CONSOLIDATE.COND :
ASSET&LIAB PROFIT&LOSS
AUDIT TRACK
At the contract level, it remains possible to keep the track of all accounting entries generated by globus. See below a full example of this audit track within the LD module.
On a LD Contract, at the bottom of any record, we find :
- 180.1 : the beginning of the ID of all the records created in the two files STMT.ENTRY and CATEG.ENTRY.
- 180.2 : the number of records created in the STMT.ENTRY table e.g. each entry in this table will have an ID as : “ID” (given in #180.1) “0001” to “000x” (x given in this #180.2).
In this example, the result is 4 records with the following ID :
110420002243771.020001
110420002243771.020002
110420002243771.020003
110420002243771.020004
- 180.3 : The number of records created in the CATEG.ENTRY file, with the same extensions as previous field.
In this example, the result is 5 records with the following ID :
110420002243771.020001
110420002243771.020002
110420002243771.020003
110420002243771.020004
110420002243771.020005
FOCUS ON DX MODULE
- DX.TRANS.BALANCES : This table holds 2 keys for each DX FX options (an FX option= 2 currencies so 2 keys). For each event (CI, CS, UO, etc…) system records amounts attached to each CRF.TYPE / value date / mat. date.
Once DX.TRANS.BALANCES generated by DX module (DX.ACCOUNTING (all events except UO) + DX.CALL.ACCOUNTING (event UO)+ DX.STATIC.CHANGES (for the CONSOL.KEY field), batch/job EOD.CONSOL.UPDATE call DX.UPDATE.CONTRACT.BALANCES which updates concat « core accounting » : RE.CONTRACT.BALANCES.
- RE.CONTRACT.BALANCES : This table contains same keys as DX.TRANS.BALANCES and stores balances by CRF.TYPE / value date / mat. date and linked CONSOL.KEY. This table holds all DX contrats impacting own book, including matured contracts.
- EB.CONTRACT.BALANCES: generated by routine RE.UPDATE.DX.ECB from table RE.CONTRACT.BALANCES. including matured contracts. Similar to RE.CONTRAT.BALANCES, except that this table contains all DX contracts DX : own book + clients trades. Furthermore, the table stores all movements from:
STMT.ENTRY (#35.x STMT.ENT.IDS)
CATEG.ENTRY (#39.x CATEG.ENT.IDS)
RE.CONSOL.SPEC.ENTRY (37.x CONSOL.ENT.IDS)
and last movements from CATEG.ENTRY (#67.x)
- RE.CONSOL.CONTRACT (before was RE.CONSOL.DX). This concat key is CONSOL.KEY. For each consolidation key, it stores all transactions impacting the balances thus contains only live contracts.
- CONSOLIDATE.ASST.LIAB : See above part, this holds A&L consolidation keys balances by CRF.TYPE.
A “REGEN” can be activated for a specific module during the COB. This tool (batch stage >= R090xx) is recreating all records from EB.CONTRACT.BALANCES and RE.CONSOL.CONTRACT from DX.TRANS.BALANCES with maturity.date >= Today (if you’re launching a REGEN for DX module).