End of Year Procedure

R10 and R11 releases

TEMENOS PACS

Table of Contents
1. Introduction ................................................................................................................... 3 2. PL.CLOSE.PARAMETER .............................................................................................. 3
Reports .............................................................................................................................................................................. 4 Year End ............................................................................................................................................................................ 4 Exclude Types .................................................................................................................................................................... 4 Grouping ........................................................................................................................................................................... 6 Halt Process ....................................................................................................................................................................... 6

3. Profit and Loss close out ............................................................................................. 7 4. Start of the year jobs .................................................................................................. 11 5. Other end of the year jobs ......................................................................................... 11 6. Conclusion .................................................................................................................. 12

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1. Introduction
This document outlines the specific, once in a year, activities relating to the financial year-end. These End of Year procedures relate mainly to close out the Profit and Loss accounts and a few other accounting updates. The Profit and Loss close out process is where PL of previous year is moved to Asset & Liability during the first working day of new financial year. This is done as the first JOB of the Batch processing so as to move all the PL entries till the previous working day to the PL CLOSE account. Here the virtual date is introduced, between the last day of the current financial year and the first working day of the next financial year so that the opening figures for the new financial year can be cleared. The virtual date is formed with a suffix CL added to the last date of the financial year. Ex: 20121231CL. Reports and journal pertaining to year end is formed with this virtual date. This document outlines the settings and the process involved in the END.OF.YEAR process. Caution: Please test the procedure in test environment and on confirming implement the same in live.

2. PL.CLOSE.PARAMETER
The parameter file PL.CLOSE.PARAMETER with a record for each lead company is used to set the financial year for a company and few other settings related to END.OF.YEAR process can also be done in this which is as follows.

Figure 1: PL Close Out Parameter The PL.CLOSE.PARAMETER has 5 settings. Reports Year End Excluded Types Grouping Halt Process

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Reports
The reports section has three related fields, REPORT.TYPE, REPORT & REPORT.DATA which control the reports that are produced during the PL close out process. The reports can be ENQUIRY, REPGEN.CREATE or program driven. In REPORT.TYPE the user can specify the type of the report required (CRF, RTN, RPG or ENQ). REPORT contains the key to REPGEN.CREATE, ENQUIRY.REPORT, RE.STAT.REQUEST or a valid compiled program name. Lastly, the REPORT.DATA field allows the program driven routines to be passed as a parameter.

Year End
The financial period end, usually yearly but it can be defined as Monthly, Quarterly, Semi-Annual or Annual. This is set in CLOSE.FREQ.DATE as a month end date and the frequency to cycle.

Exclude Types
Kindly note that because of introducing the new functionality called "Multi GAAP (Multiple Position types)" in R10 release the below changes are made at the application PL.CLOSE.PARAMETER setup to run End of year. Field TYPES.TO.EXCLUDE: ******************************** By default all the Contingent types will be bypassed by the system automatically during the End Of year (EOY) process. On top of it any Non-Contingent types can also be skipped for closing out, those has to be mentioned in the field TYPES.TO.EXCLUDE. The below explanation will give a better understanding to set up PL.CLOSE.PARAMETER. Refer the application RE.PL.PREFIXES to view Contingent and Non-contingent PL types. Sample:

Figure 2: FX.POS.TYPE PL Prefixes Position. Type IA IF TR IA PLIF PL Non-Contingent Types Contingent-Types IP CPIF CP IB CBIF CB Contingent Self Balancing Types

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If multiple position types are being used, during the EOY process by default the contingent types (IP, CPIF, CPTR, IB, CBIF, CBTR) will be bypassed automatically. Suppose, if Non-Contingent type 'PLIF' needs to be excluded for closing out process, then the PL.CLOSE.PARAMETER needs to be setup like below,

Sample PL.CLOSE.PARAMETER:

Figure 3: PL Close Out Parameter

Input position type and its corresponding close Category in the fields POSITION.TYPE and CLOSE.CATEGORY in PL.CLOSE.PARAMETER. The CLOSE.CATEGORY range allowed is between 10000 -19999.

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Sample PL.CLOSE.PARAMETER:

Note: Ensure that at least one internal account should persist in the system for the respective company pertaining to the closing category which is defined in the PL.CLOSE.PARAMETER.

Grouping
PL entries produced will be based on CATEGORY/CURRENCY and one entry will be passed to internal account. Each of these entries will be the sum of all the CONSOLIDATE.PRFT.LOSS records matching the combination of CATEGORY & CURRENCY. To produce entries summed at different group levels you may add the additional elements from the PROFIT&LOSS key so that for example the entries are summed for all records matching the same PLCATEGORY/CURRENCY/PLSECTOR or whatever local settings you have defined.

Halt Process
This is a flag which allows the COB process to be halted just after the close out process is run. This allows the users to access reports or files to extract key financial data they require pertaining to year end. If left unchecked the process will run without halting. Set field PL.CLOSE.HLT.PRCSS as required.

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3. Profit and Loss close out

Unlike in earlier releases the jobs in PL.MOVE.TO.AL runs on Daily basis but the actual process is done only on the first day of the new financial year. i. Batch name: PL.MOVE.TO.AL Below given screen shot depicts the initial part of the batch record PL.MOVE.TO.AL with relevant jobs which does the main closing out process.

Figure 4:PL.Move.To.AL The below jobs under the batch will do the consolidation of the relevant files

Figure 5: Batch Jobs to consolidate relevant files

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The rest of the jobs under the batch record which does the reporting are portrayed below.

Figure 6: Batch job which does reporting

Job name: PL.CLOSE.PRE.PROCESS This job is run before the PL.CLOSE.OUT process. It will check every day 1 week before the year end for the existence of the authorized record in PL.CLOSE.PARAMETER, otherwise raises an EB.EOD.ERROR and on the day of PL.CLOSE.OUT run then the system will fatal out if it is not found.

Job name: PL.CLOSE.OUT Generates CATEG.ENTRY for each currency to offset the PL balance and according to the AL.GROUPING defined in PL.CLOSE.PARAMETER and for each combination of the grouping the CPL balance is accumulated and writes into the work file PL.CLOSE.OUT.WORK.

Job name: PL.MOVE.TO.AL Reads the work file PL.CLOSE.OUT.WORK and raises STMT.ENTRY for the net amount to be booked in the internal account (PL CLOSE Internal Account). Thus the PL of previous year is moved to Asset & Liability.

Job name: RE.BUILD.SLC.WORK P&L keys from RE.STAT.LINE.CONT will be removed. Last years CP L keys with zero balances are deleted later in the batch EOD.UPDATE.PL.YTD.

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Job name: EOD.UPDATE.CATEG.ENT.MONTH Updates CATEG.ENT.MONTH for the categ entries generated in the above process.

Job name: EOD.CRF.PL.UPDATE & EOD.CRF.AL.UPDATE Updates CAL and CPL of the last year with the processing date as in PL.CLOSE.PARAMETER, deletes CONSOL.UPDATE.WORK and PL.CONSOL.UPDATE.WORK.

Job name: RE.CLEAR.RECALC.ENTRY Clears all line movement CAL keys and its link to RE.STAT.LINE.CONT.

Job name: RE.UPDT.STAT.LINE.CONT Rebuilds RE.STAT.LINE.CONT for the existing CAL and CPL records to facilitate the generation of reports pertaining to year end.

Job name: RE.UPDATE.LINE.BAL.MVMT Creates RE.STAT.LINE.BAL records for the virtual date as PERIOD.END date. Ex: MBGL-0330-LOCAL-20121231CL

Job name: RE.BUILD.LINE.MVMT Updates RE.STAT.LINE.BAL for the current day and generates RCA entries if any mismatch found between the virtual date record and todays record.

Job name: B.BUILD.JOURNAL.SUMMARY Builds EB.JOURNAL.SUMMARY for the PL.CLOSE.OUT process with the processing date of the PL.CLOSE.PARAMETER.

Job name: RE.BUILD.SYS.SUMMARY Writes a special EB.SYSTEM.SUMMARY record for PL.CLOSE.OUT process.

Job name: PL.CLOSE.STAT.PRINT The reports to be generated as part of the PL.CLOSE.OUT process are attached in the PL.CLOSE.PARAMETER and this job takes care of generating them.

Job name: EB.EOD.REPORT.PRINT The reports generated in the above job are printed by this job.

**All updates done and reports generated by the jobs in PL.MOVE.TO.AL will have the processing date from PL.CLOSE.PARAMETER. i.e., 20121231CL

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ii.

Batch name: PL.CLOSE.OUT.HALT

Figure 7: PL:Close.Halt.Process The field CLOSE.HLT.PRCSS in PL.CLOSE.PARAMETER is set to Y in order to initiat e the batch halt. As said earlier, during this halt the users can access reports or files to extract key financial data they require pertaining to year end. In a multi-company environment the halt happens only once after the PL.CLOSE.OUT process is completed for all companies being run.

iii.

Batch name: PL.CLOSE.OUT.FINISH

Figure 8: RE.Cycle.PL.Close.Parameter

Cycles the CLOSE.RUN.FREQ in the PL.CLOSE.PARAMETER and also cycles FINANCIAL.YEAR.END and LAST.FINANCIAL.YEAR.END in the company record.

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4. Start of the year jobs

SA.START.OF.DAY (Job/ Program name: SA.START.OF.YEAR.BAL) This job should only be run if savings accounts exist. This is an end of day job, runs at the START of the year, to move the open cleared balance to the start of year balance field in the account records runs as the first 'financial' job during start of day. Example: Last working Day of 2012: 31-12-2012 First working Day of 2013: 02-01-2013

Figure 9: SA.Start.Of.Year.Bal SA.START.OF.DAY job does the following process: a) The job SA.START.OF.YEAR.BAL is a start of day job. This means that it needs to have been run by st the time the bank starts to work on the 1 working day of the new financial year. This in turn means that this should be run on the last working day of the previous financial year. b) This job should only be run if you have savings accounts. c) THE SAVINGS ACCOUNT YEAR END CAN BE DIFFERENT TO THE FINANCIAL YEAR END --THAT IS, SAY, FINANCIAL YEAR END IS 31-12-12, WHEREAS SAVINGS ACCOUNT YEAR END CAN BE 28-02-13. THIS NEEDS TO BE TAKEN INTO ACCOUNT WHEN RUNNING THE SAVINGS ACCOUNT JOB.

5. Other end of the year jobs

i) Job to be run during a quiet period in the New Year: The following job also needs to be run, but during a quiet period of the New Year. Batch Record ID Job Name Run Date Program Name : ONLINE : IC.UPDATE.INACTIVE & IC.UPDATE.INACTIVE.POST : Any quiet period in the New Year. : UPDATE.INACTIVE.MARKER

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This subroutine will be run as part of the end of day procedure and will be an optional process; that is, it will not be run every night. Its function will be to identify those accounts on the ACCOUNT file, which have been inactive for a period of time. i.e., no movement for a user defined number of months. A select list will be used to obtain the appropriate accounts. Example: Quiet working day of 2013 say 11-01-2013

Figure 10: IC.Update.Inactive ii) Creation of PC.PERIOD record: If the POST.CLOSING module is installed and been in use, create PC.PERIOD record for the financial year-end for the date as in the field 45 of the company record on the last working day. This has to be created for all the companies.

Figure 11: PC.Period

6. Conclusion
Special care needs to be taken with regard to these End of Year jobs. In case you require any further clarifications please do not hesitate to contact us.
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