Accounting Instructions

Created by Erik Åkerlund, Modified on Mon, 20 Feb 2023 at 02:28 PM by Erik Åkerlund

Accounting Instructions

The purpose with the Accounting Instructions function is to enable a structure of accounting policy's for all deals entered into the database. This function transforms the financial transaction's data to accounting data as a basis for a journal entry in the accounting System. 
In most cases only one Accounting instruction per instrument type (Menu item in Deal input) is required. The dynamic account coding extensions will automatically create numerous different combinations of account codes for different currencies, counterparts, instruments etc for the transaction to be coded. If the dynamic account coding will meet your accounting needs there is no need to use the bottom part – Portfolio selection – in the accounting instruction form. 


Another way of creating the same result is by using the portfolio selection to have several Accounting instructions per Instrument type. You can for example have one instruction for internal Loans and one for external Loans. In such an example set up two different counterparty groups in Portfolio structures and select them in the portfolio selection section at the bottom under two different accounting instruction names with different set up of accounts. The disadvantage with this solution is that it will normally require numerous separate accounting instructions which will be cumbersome to set up and support in the long run. Please contact CRM for advice. To print the instruction use the printer icon and choose which instruction or print all instructions.

The accounting instruction is divided by events and type (Deposit and Loan). Value = accounting the transaction at start. Maturity = accounting the transaction and/or interest at maturity. Unreal = accounting for accrued interest, unrealised FX effects, market values, short part of long term transaction etc. 

 



For detailed instructions on how to set up accounting instructions, go to: Create accounting instruction

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