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 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

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
REPORT
UPDATE PRODUCTION
RE.STAT.REP.LINE
RE.STAT.REPORT.HEAD
CONSOLIDATE.COND RE.STAT.RANGE
RE.STAT.COLUMN,RANGE

- ASSET& LIAB REPORTS

- PROFIT&LOSS

CONSOLIDATE.ASST.LIAB
CONSOLIDATE.PRFT.LOSS

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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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CHART OF ACCOUNTS TOOLS

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.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.

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.

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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,

 Maximum Length of 65

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 PROFIT AND LOSS PARAMETER
 ONE FIXED PARAMETERS – APPLICATION ID – PL

 TWELVE GENERAL PARAMETERS

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

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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
17. 1 DEBIT.MOVEMENT. -306.41

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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
upon settings in REVALUATION.PARAMETER

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 CHART OF ACCOUNTS TOOLS

A Practical and Interactive

Session on Chart of Account
Development

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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

 TOOLS TO IDENTIFY DIFFERENCES

EB.SYSTEM.SUMMARY
TRANS.JOURNAL
EB.JOURNAL.SUMMARY

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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 10,000 -10,000 AC.1.TR.USD…DEBIT

contract
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

LD.1.TR.USD.….51000
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 BALANCE FILES FOR VARIOUS APPLICATIONS
Details of the Balance file and lookup files for various applications:

Lookup File
Application Balance 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
Miscellaneous Deals (MD) MD.BALANCES RE.MD.BALANCES
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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
Miscellaneous Deals (MD) RE.CONSOL.MD

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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

Revaluation Error (- if foreign currency

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HOW IT HAPPENS?
GL Mismatch Position
Difference

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 Yes No Yes

Update

RE.CONSOL.CONTRACT No Yes No

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 Analysis of Mismatch
Tools used in Globus

 General Ledger (GLSTD, MBGL…)

RE.STAT.MISMATCH
RE.STAT.BAL.REC

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 Correction of Mismatch
On finding the reason & fixing it:

Correct the Contract Balance

Correct the CAL through Accounting Entry

(SPEC & STMT/CATEG Entries)

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 Correction of Accounting Entries
Update 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 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

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 Smart Solutions™

Workshop…

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 THANK YOU

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