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T24forMCB Accounting Highlights

EKI Bosnia
24 February 2012

Agenda

Overview & Category Codes

Multi-Company / Multi-Book

Accounts & Contract Id Structure

Fixed Assets & Depreciation

Transactions Accounting

Provisions & Write-offs

Consolidation, Coding & Reporting

Overview & Category Codes

Accounting & Reporting - Overview

Accounting & Reporting

Accounting

Consolidating

Reporting

AL Keys

HO reporting
requirement
Regulatory reporting
requirement

Accounts

Contracts

Category
codes
PL Keys

Profit & Loss

Some choices
available to user

Major rules
User definable

Balance
sheet
Profit
& Loss
Fully
User definable
Slide 4

Currency
reports
Other
reports

Accounting Product Overview

Accounting

Value dated

Contingent
balance

Trade dated
Accounts
Security
Contracts

Non contingent
balance

Non contingent
balance
Account Balances

A/L
Consolidation

Contract Balances

P/L Consolidation

PL entries

Slide 5

Category Codes

In T24, Category codes are used to classify products


Account heads
Contract heads and
Profit and loss items
5 digit numbers
First two digits highest level classification
Next three digits sub classification
01-001 represents Customer type of Current account
10-002 represents Internal type of Cash account
21-051 represents Contract type of Commercial loan
51-001 represents Profit and loss from product type of Interest income
61-002 represents Profit and loss from overhead type of salary expense

Slide 6

Category Codes

Records delivered with initial build can be suitably modified, or new ones
created within the allocated range
Those not used immediately could be marked as -Reserved for future use
Application and product ranges are mostly pre-defined within which suitable
sub products can be created any time
Accounts
01-000 to 19-999
Contracts
20-000 to 49-999
P&L
50-000 and above

Slide 7

Category Codes - Contracts

Forex

20000 20999

LD and MM
Sub-blocks range

21000 21999
21001 21029
21030 21039
21040 21044
21045 21049
21050 21074
21075 21084
21085 21089
21090 21094
21095 21099

Deposits
Takings
Fiduciary deposits
Sundry deposits
Loans
Placements
Fiduciary placements
Accounts receivable
Commitments

Securities

22000 22999

22999 Securities Default

Other applications

23000 49999

As per allotted ranges

Slide 8

Category Codes Profit and Loss


Product related

50000 59999
50000 50999
51000 51999
52000 52999
53000 53999
54000 59999

Non product related

60000 - 69999
60000 60999
61000 61999
62000 62999
63000 63999
64000 64999

PL Close out

Interest paid
Interest received
Commission
Exchange profit
Others

Salaries
Premises and Buildings
Operating expenses
Taxes
Others

69999

Slide 9

Category Codes

Category codes, can be defined as a consolidation criteria in


CONSOLIDATE.COND application
Help banks produce reports reflecting a coordinated and structured view
of their operations
Housing loan in BAM for residents of Bosnia engaged in software
industry
Housing loan in USD for residents of UK engaged in iron and steel
industry
Vehicle loan in CAD for residents of USA engaged in software
industry

Slide 10

Multi-Company & Multi-Book

Single Company vs. Multi Company - Overview


Single Company
setup

Multi Company setup


Independent Balanced
Books
Independent COB

US Br.1
US Br.2
US Br.3
US Br.4
US Br.5

Sharing / Optional
sharing of Information

US Office 1
(Lead Company & 1st
Company)

US Office 2 (Lead
Company)

Different Local
Currencies

US Office 3 (Lead Company)

Different Year End

UK Office (Lead Company)

A set of Batch Records


for each Company
Transfer of Contracts
and Accounts

Japan Office (Lead Company)

Germany Office (Lead


Company)

Slide 12

Multi Company vs. Multi Book - Overview


Multi-Company
setup
US Office 1 (Lead
Company & 1st
Company)

Sharing of Financial Type


Files

Multi-Book
setup

Independent Balanced
Books
Independent COB

US Office 1 (Lead
Company & 1st
Company)

US Office 2 (Lead
Company)

Optional / sharing of
Information

US Br.2

US Office 3 (Lead Company)

UK Office (Lead Company)

Different Local
Currencies

US Br.3

Different Year End

US Br.4

Japan Office (Lead Company)

Germany Office (Lead


Company)

A set of Batch Records


for each Company
Transfer of Contracts
and Accounts
Slide 13

Multi Company Multi Book Overview

US Office (Lead
Company & 1st Company)

US Office 2 (Lead Company)

US Br.3

US Br.4

US Br.5
UK Office (Lead Company)

Germany Br.2
Japan Office (Lead Company)

Germany Office (Lead


Company)

Germany Br.3
Slide 14

Accounts & Contracts Id Structure

Account & Contract Ids

Account Structure
Customer Accounts
2 14 Numeric Characters
E.g. 128900

Internal Accounts
6 12 Alpha Numeric Characters
E.g. BAM100000001

Contracts
12 Alpha Numeric Characters
E.g. LD1009000001
16

Fixed Assets & Depreciation

Transactions Accounting

Unit Overview

Bank basic
Parameters

Customer
Parameters

Other Finance
Parameters

DC
FT

Journal Entries

Transaction Codes

Category Codes

Account Based
Entries

Accounts

P&L Based Entries

Contract Based
Entries

Slide 19

Accounting Entries for a LD Loan


BAM10,000 created on 24 Feb with valued date of 09 Mar
With bullet payment after one year.
CUSTOMER A/C

LD Contingent A/C

120,000

120,000

120,000

Transaction Date

Transaction Date

Forward DR
RE.CONSOL.SPEC.ENTRY

Maturity Date

120,000
Value Date

STMT.ENTRY

LD Asset A/C
120,000
Value Date

120,000
Maturity Date

Live DR
RE.CONSOL.SPEC.ENTRY

Slide 20

Main Files for Accounting Entries

STMT.ENTRY

Entries affecting
Account balances
(Non contingent)

ASSETS & LIABILITIES

PROFIT & LOSS

RE.CONSOL.
SPEC.ENTRY

Entries affecting
all other
Assets & Liabilities

CATEG.ENTRY

Entries affecting
PL Heads

Slide 21

Provisions & Write-offs

Consolidation, Coding & Reporting

CAL Key Balances

System designed
Fixed selections

Application

User designed
Selections from

CUSTOMER

Ccy Market

ACCOUNT

Category

Pos Type

MM

SWAP

Residence

Sector

AC.1.TR.USD.1000. 1100.GB

Currency

FX

LD

LC

MG

Etc

CONSOLIDATE.ASST.LIAB

USD Current Account balance of British residents engaged in Sector 1100 is


USD 55,000
Credit Balances

USD 23,500
Debit Balances

USD 11.35
Interest payable

USD 232.45
Interest receivable

Asset types
Slide 24

Etc

CPL Key Balances

System designed
Fixed selections

PL

User designed
Selections from

CUSTOMER

PL Category

Product Category

PL.50000.6001.US.. 25

or

CATEG.ENTRY

Residence

CP

AC

FX

LD

LC

MG

Application selections as defined for AL

CONSOLIDATE.PRFT.LOSS

Interest expense on Savings accounts of US residents handled by officer Smith is


USD 550.23
CHF 11237.35
Current month
Current month
USD 11237.35
Year beginning to last
Currency wise
month end

EUR 232.45
Year beginning to last
month end
Slide 25

Etc

CAL and CPL Key Life

The keys always give a snapshot picture as at COB of the previous day

New keys are generated automatically when there is a need

CAL keys, once created are perpetual as long as there is Opening or Closing balance

CPL file is wiped out at every year-end

Balance transferred to the internal account specified in ACCOUNT.CLASS record with Id PLCLOSE
Done in the Batch job PL.MOVE.TO.AL during year end closing
Live file PL.YR.END.ENTRY holds details of individual movements from CPL to this internal account

Slide 26

Thank You