5_t24accountingsetupforconsolidation
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T24 Accounting Set-up - For Consolidation
Thank you for choosing TEMENOS education program. We would like to welcome you to your very first course on the Accounting learning roadmap This T24 Overview course will offer you a high level understanding of T24 and it forms a key foundation for your subsequent learning At the bottom of this e-learning player, you will find some useful buttons. There is a play and pause button available for you to start and stop the learning. Each slide will move to the next one automatically after explanation for the particular slide has been completed Should you wish to manually forward to the next slide, there is a forward button on the player Alternatively, you can make use of the backward button to go back to previous slides Throughout this course, I will be the one providing you with supplementary explanation to the slides. As the animations and wordings on certain topics are self explanatory, you may not hear my voice on those pages . When that happens, some background music will be played. If you prefer not to listen to the music, you may adjust the volume using the volume button found on the player
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
There is no actual General Ledger accounts in T24 – only `virtual’ accounts. Information is held at a group condition level, better called as Key level. T24 does not require General Ledger accounts, so how does it maintain a General Ledger system? In T24 the transaction data is used to feed the General Ledger, this is accomplished by telling T24 how you wish to analyse the data. One of the first files set-up on implementation is the CONSOLIDATE. COND, which has just two records viz. ASSET & LIAB and PROFIT & LOSS. Here you specify where T24 should search for the required data such as Industry code, Nationality, and Residence. Once this file and the application parameters are in place, T24 is ready to create and maintain a General Ledger. Thus, each Bank can design its own General Ledger instead of following some pre-defined General Ledger. One Bank may like to group its loans based on industry of borrowers while another Bank may like to group them based on their tenor like Short term, medium term and long term. A third Bank may like to group them based on tenor as well as industry, residence and sector of its borrowers. T24 gives this flexibility under its feature of not having a pre-decided General Ledger account head. Banks can decide these based on their reporting requirements. It is their reports which decide the General Ledger groupings.
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T24 Accounting Set-up - For Consolidation
The financial reporting in T24 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'. 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 STMT.ENTRY or CATEG.ENTRY record, then a RE.CONSOL.SPEC.ENTRY (consolidation entry) is produced. All applications which update EB.CONTRACT.BALANCES, these movements are updated on-line to work files (CONSOL.UPDATE.WORK for both STMT.ENTRY and RE.CONSOL.SPEC.ENTRY) and PL.CONSOL.UPDATE.WORK (For CATEG.ENTRY). These work files hold the movements CRF record key-wise, and used to update the CRF during COB. For FOREX application RE.CONSOL.SPEC.ENTRY are generated during COB and update CONSOL.UPDATE.WORK file.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
Rules for consolidation are to be indicated in CONSOLIDATE.COND table. It has two records, ASSET&LIAB and PROFIT&LOSS to indicate choices for Asset and Liability consolidation and Profit and Loss consolidations. The choices for consolidation could be same for both records or different to some extent also. These form the basis for default consolidation. It is also possible to have Company specific consolidation rules by having record Ids in the form of ASSET&LIAB.CCCCC and PROFIT&LOSS.CCCCC where CCCCC is the Id of an operating Company.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
CONSOLIDATE.COND allows selection criterion for consolidation based on information of CUSTOMER application and/or any Contract or Account files. It has pre-defined four Fixed parameters. They are (1) Application which holds the balance, (2) Currency market used for consolidation, (3) Position type and (4) Currency in which the Assets and Liabilities are held. Application names are indicated as 2 digit alpha characters like AC, LD, MM, FX, MG etc. T24 allows defining up to 99 currency markets. However, these are consolidated as 9 markets based on the first digit of the respective market. Markets 1, 10, 11 to 19 are consolidated as Market 1. Currently, position type of TR or IA is used. TR denotes Trading Position, whereas IA to denote IAS (International Accounting Standard) position. For entries that are to be reported under IA, the POSITION.TYPE on the account input should be set as IA. T24 supports multi currency environment. Hence, consolidation is automatically based on the Currency of Assets and Liabilities. It is also possible to define precious metals as currency and consolidate on that basis. CUSTOMER files hold all central non financial information with regard to a Customer such as the Customer’s Industry, Sector, Residence, Nationality and status. Various fields of the contract/account files contain information such as the Product Category, Dealing officer, Starting and ending dates, status etc. The variable parameters are chosen according to the reporting needs.
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T24 Accounting Set-up - For Consolidation
In addition to creating consolidation keys, T24 also generates the field names for selection in the file RE.STAT.REP.LINE in which we will be defining the lines for our reports. These are the same mandatory and optional choices made in CONSOLIDATE.COND for Assets and Liabilities and Profit and Loss. Not only the field names, but also their order of choice as made in CONSOLIDATE.COND records are maintained in RE.STAT.REP.LINE. Hence, the skeleton for reporting is determined by the method of consolidation.
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T24 Accounting Set-up - For Consolidation
FILE.NAME: Input can be CUSTOMER or LOCAL. If CUSTOMER is input, the variable declared will be part of the composite consolidation key for all applications. The information will be chosen from respective CUSTOMER records and for this purpose, the next field FIELD.NAME should also be input to indicate which field of CUSTOMER record should be chosen. If the value LOCAL is input, then the details for each application will be loaded in the multi value associate fields MULTI.VALUE.NO to CON.ON.END.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
We see the result of consolidation based on Sector choice. SECTOR is the second choice. Along with the four pre-defined choices, this now becomes the sixth place choice for consolidation. As per the choice made here, the sixth place of consolidation should be on the basis of Customer’s sector. Hence, the Account 17205 is consolidated along with all other accounts of Customers who all have the same sector – 1001 indicating Individual.
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T24 Accounting Set-up - For Consolidation
Here, the consolidation is based on customer field Sector. While, 1000, 1001-2000 are consolidated separately, those sectors other than these will be consolidated under REST consol key. Customer record with sector 3501 is getting consolidated under consol key LD.1.TR.USD.21051.REST.GB.6M….1000 which is the consolidation for LD balances with category 21051 and sector 3501 which is outside the range of 1000-2000.
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T24 Accounting Set-up - For Consolidation
Here SECTOR is chosen as the sixth choice for consolidation. It is a customer file. In this consolidation, it is possible to do so by choosing separate sector codes for one consolidation. Like that a group of sector codes can be chosen to do one consolidation. REST specified in START.RANGE is a key word. Here, the value – REST takes care of consolidation of all other values under one group. Consolidation key for the REST group is AC.1.TR.USD.1000; LD.3.TR.GBP.2000; MM.9.TR.JPY.REST.
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T24 Accounting Set-up - For Consolidation
Consolidation can also be done with default sector codes and subject to a specific field in customer file being equal to a particular value or values or range of values. In this case, the sector code 2002 falls outside the range and hence interpreted as REST and included in the key as RESIDENCE Field is equal to US as per the condition set in CONSOLIDATE.COND.
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T24 Accounting Set-up - For Consolidation
In this example the NATIONALITY “US” conforms to the Condition for the display of the RESIDENCE in the CAL-Key. Here is RESIDENCE “GB” displayed.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
If PRODUCT had been chosen as third user definable choice and source indicated as LOCAL ,3 will be indicated as MULTI.VALUE.NO and rules for that defined by using its associated multi value fields upto CON.ON.END. Validations exist for APPLICATION and LOCAL.FILE.NAME. If the variable element(s) are not defined for an application, then in the consolidation key of the records belonging to the application, the variable element(s) will have null value.
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T24 Accounting Set-up - For Consolidation
If PRODUCT had been chosen as third user definable choice and source indicated as LOCAL ,3 will be indicated as MULTI.VALUE.NO and rules for that defined by using its associated multi value fields upto CON.ON.END. Validations exist for APPLICATION and LOCAL.FILE.NAME. If the variable element(s) are not defined for an application, then in the consolidation key of the records belonging to the application, the variable element(s) will have null value.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
If PRODUCT had been chosen as third user definable choice and source indicated as LOCAL ,3 will be indicated as MULTI.VALUE.NO and rules for that defined by using its associated multi value fields upto CON.ON.END. Validations exist for APPLICATION and LOCAL.FILE.NAME. If the variable element(s) are not defined for an application, then in the consolidation key of the records belonging to the application, the variable element(s) will have null value.
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T24 Accounting Set-up - For Consolidation
LOCAL.FIELD.NAM is a field in application for which consolidation is desired. LOCAL.FILE.NAME is used to return consolidation KEY variable value. For instance, for a file to consolidate Group Accrual Balances, application name will be GROUP.ACCRUAL,LOCAL.FIELD.NAM for consolidation can be CATEGORY. This field can be single valued. One variable in this field may return different information for different applications.
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T24 Accounting Set-up - For Consolidation
It is also possible to combine values of a variable from a LOCAL file. Values can be indicated Application wise.A single value can be accumulated.A range of values can be accumulated .Values not specified can be accumulated as REST. If REST is not specified, missing values keep their own value.
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T24 Accounting Set-up - For Consolidation
Asset & Liability record type denotes the field name(s) of the file specified in LOCAL.FIELD.NAME Field which is used as a consolidation variable. For Profit & Loss (when LOCAL.FIELD.NAME Field has a value of "AL") it refers to the number of the key variable from the Asset & Liability key to be used as part of the P&L key. This field will either contain a field name or two field names separated by a slash ('/'). Two field names are used when the initial amount or initial time are to be calculated. When calculating the 'Initial Amount' the fields contain the currency code and the amount must be entered. When calculating 'Initial Time' two date fields must be entered. If two fields are entered then details must be entered in LOCAL.START and LCL.COMBINED. Asset & Liability record type denotes the field name(s) of the file specified in LOCAL.FIELD.NAME Field which is used as a consolidation variable. For Profit & Loss (when LOCAL.FIELD.NAME Field has a value of "AL") it refers to the number of the key variable from the Asset & Liability key to be used as part of the P&L key. It is possible to capture the difference as 0 (Call) or number between 1 to 999 (Days notice) or as days or months. They can then be suitably grouped and labeled . For example, Call, 7 days Notice, 3 months contract, Short term, Long term etc.
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T24 Accounting Set-up - For Consolidation
LOCAL.END is never used in this case. REST at the last value is mandatory. Any period>60M will be combined under the variable value REST. 0 stands for Call contracts, a number (e.g. 90) represents Notice Contracts with equal notice period, and D or M denotes normal contracts with a specific Period. The term specified in the LOCAL.START field is defined as the difference between the valuedate and maturity-date.
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T24 Accounting Set-up - For Consolidation
LOCAL.END is never used in this case. REST at the last value is mandatory. Any period>60M will be combined under the variable value REST. 0 stands for Call contracts, a number (e.g. 90) represents Notice Contracts with equal notice period, and D or M denotes normal contracts with a specific Period. The term specified in the LOCAL.START field is defined as the difference between the valuedate and maturity-date.
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T24 Accounting Set-up - For Consolidation
EXACT.RANGE is a Field in this application. If the value of the field is set to Yes, consolidation matching exact period like one month will take place. This consolidation will be suffixed with ‘E’. LCL.COMBINED is the code (value) under which a range defined in Fields LOCAL.START and LOCAL.END or a REST defined in LOCAL.START will be aggregated. If LCL.COMBINED is set to segregate selections as 7D (7days), 1M (1 month), and REST, and EXACT.RANGE set to YES, Consolidation will take place as follows: 1. Consolidation for 7 days 2. Consolidation for assets/liabilities with period above 7 days but less than 1 month and 3. Those with initial period of exactly 1 month will be consolidated as 1ME. when EXACT.RANGE is not set, third consolidation will not take place.
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T24 Accounting Set-up - For Consolidation
In this case, EXACT.RANGE Field is set to Yes. Hence, consolidation for period 1m to less than 3M is consolidated separately and consolidation of 12M is done separately . We can note the LMM consolidation keys with 12m and 12ME separately.
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T24 Accounting Set-up - For Consolidation
In CONSOLIDATE.COND Asset & Liability record , the field names of the file specified in LOCAL.FILE.NAME Field are used as consolidation variables. For Profit & Loss (when LOCAL.FILE.NAME Field has a value of "AL") it refers to the field names of the Asset & Liability key to be used as part of the P&L key. LOCAL.FIELD.NAM Field will either contain a field name or two field names separated by a slash ('/'). Two field names are used when the initial amount or initial time are to be calculated. When calculating the 'Initial Amount' the fields contain the currency code and the amount must be entered. LOCAL.CCY Field will contain a currency code to convert amount into a common currency. LOCAL.START Field allows definition of a single value to be accumulated or is the beginning of a range of values to be accumulated or denotes through input of value REST accumulation of all values not specified. LCL.COMBINED Field is the code (value) under which a range defined in Fields LOCAL.START and LOCAL.END or a REST defined in LOCAL.START Field will be aggregated.
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T24 Accounting Set-up - For Consolidation
Like time duration, range of principal amounts in MM are also consolidated. The case discussed here is that of consolidation of principal amounts. The values 3/2 specified against Local Field No mean that they are the field numbers 3 and 2 defined for Principal and Currency of the MM Contract. The furnished value of USD against Local CCY is meant to convert the Principal amounts in different currencies of MM Contract in to USD so as to segregate the converted principal amount into 3 discrete values like USD100T, USD500T and REST. Now you can verify the key value keeping the CONSOLIDATE.COND set up made and the data available in MM Contract and appreciate the value observed in 9th position of key, which is highlighted.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
When contingent entry is to be passed, it is possible to pass either as a set of self-balancing entries or one sided entry alone. When a loan of USD 10,000 is proposed to be disbursed tomorrow (value date) but transaction is entered today, accounting entry / entries for today could be either Dr FORWARDB USD 10,000 or Dr FORWARDDB USD 10,000 and Cr FORWARDDBBL USD 10,000 This option is exercisable for Forex contracts through Field FX.SELF.BAL and for all other contracts through Field CONT.SELF.BAL. If self balancing entries are to be raised, this field will be set to Y. Contingents can be selectively revalued, Application wise and within an application any of the concerned contingent asset type. To revalue only contingent loans in MM, the needed setting would be FWD.REV.APP MONEY.MARKET FWD.REV.TYPE FORWARDDB If All applications are to be covered, then, ALL can be indicated in FWD.REV.APP. When contingents are revalued, System will change the contingent asset value suitably without any effect on Profit and Loss. CONT.SELF.BAL Field should be set to Y is self balancing entries are to be raised. This can be used for any Contract application.
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T24 Accounting Set-up - For Consolidation
KEY.APPLICATION Field is hard-coded and is used to establish linkage in general file(s) from Local (application) file. The purpose of field range KEY.APPLICATION to KEY.LOCAL.FIELD is to provide the link from Application file(s) to each of General files used. There must be a set of details loaded for each General file and application. If a link is left out, then an error condition arises. These fields are mandatory for each application. i.e. KEY.APPLICATION,KEY.GEN.FILE,KEY.LOCAL.FILE and KEY.LOCAL.FIELD have to be defined for each application under CONSOLIDATE.COND record. Currently, CUSTOMER is the only General file.
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T24 Accounting Set-up - For Consolidation
Care must be taken when upgrading T24 release to add new contingent asset types suitably, since they will not be added automatically. Cannot specify ALL in FWD.REV.TYPE Field. When contingents are revalued, there would be no effect on P &L.
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T24 Accounting Set-up - For Consolidation
It is possible to consolidate Limits of customers. LIMIT.TO.TAKE Field defines the amount field in the LIMIT record to be used for consolidation purposes. Here, ONLINE, ADVISED or INTERNAL amount field specified in the LIMIT record will be used when extracting details from the LIMITS system for asset type LINE. Application: LIMITS and Local File Name: LIMIT used to define the consolidation variables relevant to LIMIT application. LINE will contain the value of the field as set in LIMIT.TO.TAKE. UTIL will contain the value of total outstanding which is the total limit utilised.
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T24 Accounting Set-up - For Consolidation
Keys with Asset types LINE and UTIL formed are used to consolidate limits and utilised limits. Limit granted and/or portion utilised can be calculated and used for reporting . Consolidation entries raised only for Limits at the top most level for a credit line – say Global or Product.
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T24 Accounting Set-up - For Consolidation
POSITION.ENTRY Field defines whether Position entries are raised for the CRB. Input only allowed for record ASSET&LIAB.Values allowed: NONE - No interface to CRB required; SUMMARY - Movements to be booked for the total difference between yesterday and today’s positions. When the FCY asset is in GBP, two internal accounts like GBPUSD1055000100 and USDGBP1055000100 will be opened. One account is debited and other account is credited with equal amount of local currency(USD). These sum total of all these assets and Liabilities will be zero. Following Fields of CONSOLIDATE.COND should be updated KEY.APPLICATION POSITION KEY.GEN.FILE CUSTOMER KEY.LOCAL.FILE RE.POSITION.BALANCE KEY.LOCAL.FIELD 13 (CUSTOMER RE.CONSOL.SPEC.ENTRY generated with POSITION Id (except date) as DEAL.NUMBER, Like US00100011TR66GBPUSD.
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T24 Accounting Set-up - For Consolidation
POSITION.ENTRY Field defines whether Position entries are raised for the CRB. Input only allowed for record ASSET&LIAB.Values allowed: NONE - No interface to CRB required; SUMMARY - Movements to be booked for the total difference between yesterday and today’s positions. When the FCY asset is in GBP, two internal accounts like GBPUSD1055000100 and USDGBP1055000100 will be opened. One account is debited and other account is credited with equal amount of local currency(USD). These sum total of all these assets and Liabilities will be zero. Following Fields of CONSOLIDATE.COND should be updated KEY.APPLICATION POSITION KEY.GEN.FILE CUSTOMER KEY.LOCAL.FILE RE.POSITION.BALANCE KEY.LOCAL.FIELD 13 (CUSTOMER RE.CONSOL.SPEC.ENTRY generated with POSITION Id (except date) as DEAL.NUMBER, Like US00100011TR66GBPUSD.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
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T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
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T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
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T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
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T24 Accounting Set-up - For Consolidation
1. Ans: False. For Assets and Liabilities consolidation (Accounts and contracts), choice of currency is automatic. It is the fourth choice by the System in CONSOLIDATE.COND for Assets and Liabilities 2. Ans: False. In CONSOLIDATE.COND, this would be the first choice. The first four mandatory choices will not appear in CONSOLIDATE.COND 3. Ans: False. Choices selected for consolidation has no relevance to self balancing non contingent entries. 4. Ans: True. A Bank can set duration as choice in CONSOLIDATE.COND only for some contracts but not for accounts. This is possible in T24
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
For Profit and Loss consolidation, CONSOLIDATE.COND has one fixed parameter. This could be either PL or CP, which stand for normal Profit and Loss or Contingent Profit and Loss. CP is used under Value dated accounting for PL items with future value date. PL is used under all other cases when PL item is affected the same date. Upto 12 User definable parameters can be chosen from a single value field. Choices can be from two general files of CUSTOMER and CATEG.ENTRY or Local files, which could be any contract or account file. However, choice for Local files can be made only if the same had been chosen for Assets and Liability consolidation. Hence, Assets and Liability consolidation should be designed partly with Profit and Loss consolidation also in mind.
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T24 Accounting Set-up - For Consolidation
FILE.NAME: Input can be CUSTOMER or LOCAL. If CUSTOMER is input, the variable declared will be part of the composite consolidation key for all applications. The information will be chosen from respective CUSTOMER records and for this purpose, the next field FIELD.NAME should also be input to indicate which field of CUSTOMER record should be chosen. If the value LOCAL is input, then the details for each application will be loaded in the multi value associate fields MULTI.VALUE.NO to CON.ON.END.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
FILE.NAME: Input can be CUSTOMER or LOCAL. If CUSTOMER is input, the variable declared will be part of the composite consolidation key for all applications. The information will be chosen from respective CUSTOMER records and for this purpose, the next field FIELD.NAME should also be input to indicate which field of CUSTOMER record should be chosen. If the value LOCAL is input, then the details for each application will be loaded in the multi value associate fields MULTI.VALUE.NO to CON.ON.END.
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T24 Accounting Set-up - For Consolidation
We see the result of consolidation based on Sector choice. SECTOR is the second choice. Along with the four pre-defined choices, this now becomes the sixth place choice for consolidation. As per the choice made here, the sixth place of consolidation should be on the basis of Customer’s sector. Hence, the Account 17205 is consolidated along with all other accounts of Customers who all have the same sector – 1001 indicating Individual.
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T24 Accounting Set-up - For Consolidation
If a particular variable in the CRF key is required only for specific conditions, then the condition details are entered in CONSOL.ON.FILE to CONSOL.END Fields. For Profit and Loss consolidation, only if FILE.NAME Field is CUSTOMER or CATEG.ENTRY, then these choices are exercisable. CUSTOMER should be input in CONSOL.ON.FILE. Viz. if the conditions can be laid based on a given choice in CUSTOMER. CONSOL.ON.FIELD should then be a field name of CUSTOMER. The field name input should relate to a single-valued field. Local reference field names are accepted with a suffix. Condition details like Start and end of a range can be indicated through CONSOL.START and CONSOL.END Fields. You can observe from the above screenshots that Sector Code would appear in key only when it is between 1000 and 2000. From the other screenshot you can observe that PLDepartment would appear in key only if resident of USA. While appearing in the key, it would be grouped as LOAN for Department Officers between 1 to 100 and as PYMT for those between 2001 and 2100. Other officers’ codes would appear individually provided their residence is US.
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T24 Accounting Set-up - For Consolidation
In PL consolidation, General files are CUSTOMER and CATEG.ENTRY. While Local file can only be AL which means Local files chosen in ASSET&LIABILITY record of CONSOLIDATE.COND. The Local key components used for A/L record can be mapped into P&L record. LOCAL.FIELD.NAME can be of fields discussed for local files in ASSET&LIABILITY record.
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T24 Accounting Set-up - For Consolidation
Once the splits have been carried out on the Asset and Liability key, they can be mapped into the Profit and Loss key thus ensuring that the splits are same. This means that any subsequent change in Assets and Liability consolidation will automatically be valid for Profit & Loss consolidation. Only the desired Assets and Liability consolidation that is to be mapped for Profit and Loss also are chosen in CONSOLIDATE.COND for Profit and Loss. Any unique consolidation meant for Assets and Liability alone can be omitted.
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T24 Accounting Set-up - For Consolidation
Once the splits have been carried out on the Asset and Liability key, they can be mapped into the Profit and Loss key thus ensuring that the splits are same. This means that any subsequent change in Assets and Liability consolidation will automatically also be valid for Profit & Loss consolidation. Only the desired Assets and Liability consolidation that is to be mapped for Profit and Loss also are chosen in CONSOLIDATE.COND for Profit and Loss. Any unique consolidation meant for Assets and Liability alone can be omitted.
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T24 Accounting Set-up - For Consolidation
CPL consolidates only CATEG.ENTRY records. Here key application is PROFIT.LOSS. The Fields KEY.APPLIATION to KEY.LOCAL.FIELD provides link application files to general files. The general files are CUSTOMER and CATEG.ENTRY. Local file is CATEG.ENTRY. Local field is PRODUCT.CATEGORY.
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T24 Accounting Set-up - For Consolidation
Contingent P & L entries can be consolidated under value dated accounting system in account based applications. This feature is available from R7. Here, the system id or Fixed Parameter should be CP instead of PL. Consolidation of CP is done as one sided entry or self balancing entries. Self balancing entries raised by setting Field CONT.SELF.BAL to ‘Y” and SYSTEM.ID should be CB.
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T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
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T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
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T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
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T24 Accounting Set-up - For Consolidation
CPL key will have the details of PL/CP ,General files and local files from CAL chosen. The keys also has balances currency wise. DATE.LAST.UPDATE Field shows the Last date of update of the CPL record. Please note that CPL records gets updated only whenever there is a movement in the record or at month beginning. CURRENCY Field shows Currency of Income / expenditure originally booked. BALANCE Field shows Accumulated PL balances from month beginning till date prior to DATE.LAST.UPDATE as local currency equivalent. CCY.BALANCE Field indicates the same but in currency in which earned / incurred.
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T24 Accounting Set-up - For Consolidation
DEBIT.MOVEMENT Field shows debit movement on DATE.LAST.UPDATE, as local currency equivalent. CCY.DEBIT.MVE Field indicates the same in currency in which earned / incurred. CREDIT.MOVEMENT Field shows credit movement on DATE.LAST.UPDATE as local currency. Equivalent CCY.CREDT.MVE Field indicates the same in currency in which earned/ incurred. BALANCE.YTD Field indicates the accumulated balance from start of financial year up to the previous month end as local currency equivalent.CCY.BALANCE.YTD Field indicates the same in currency in which earned / incurred.
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1. Ans: False. Option for self balancing contingent entries has no connection with CP and PL keys 2. Ans: False. Option set in CONSOLIDATE.COND for Profit and Loss items is common for both. 3. Ans: False. Sector can be chosen from General file CUSTOMER in CONSOLIDATE.COND for Profit and Loss items, even if it had not been chosen for Assets and Liability consolidation 4. Ans: False. Application level choices made for Assets and Liabilities consolidation cannot be changed for Profit and Loss consolidation.
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T24 Accounting Set-up - For Consolidation
We have now come to the end of this course. We hope that you have attained a high level understanding of T24 and would like to welcome you to join us in our subsequent courses. Thank you!
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Thank you for choosing TEMENOS education program. We would like to welcome you to your very first course on the Accounting learning roadmap This T24 Overview course will offer you a high level understanding of T24 and it forms a key foundation for your subsequent learning At the bottom of this e-learning player, you will find some useful buttons. There is a play and pause button available for you to start and stop the learning. Each slide will move to the next one automatically after explanation for the particular slide has been completed Should you wish to manually forward to the next slide, there is a forward button on the player Alternatively, you can make use of the backward button to go back to previous slides Throughout this course, I will be the one providing you with supplementary explanation to the slides. As the animations and wordings on certain topics are self explanatory, you may not hear my voice on those pages . When that happens, some background music will be played. If you prefer not to listen to the music, you may adjust the volume using the volume button found on the player
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
There is no actual General Ledger accounts in T24 – only `virtual’ accounts. Information is held at a group condition level, better called as Key level. T24 does not require General Ledger accounts, so how does it maintain a General Ledger system? In T24 the transaction data is used to feed the General Ledger, this is accomplished by telling T24 how you wish to analyse the data. One of the first files set-up on implementation is the CONSOLIDATE. COND, which has just two records viz. ASSET & LIAB and PROFIT & LOSS. Here you specify where T24 should search for the required data such as Industry code, Nationality, and Residence. Once this file and the application parameters are in place, T24 is ready to create and maintain a General Ledger. Thus, each Bank can design its own General Ledger instead of following some pre-defined General Ledger. One Bank may like to group its loans based on industry of borrowers while another Bank may like to group them based on their tenor like Short term, medium term and long term. A third Bank may like to group them based on tenor as well as industry, residence and sector of its borrowers. T24 gives this flexibility under its feature of not having a pre-decided General Ledger account head. Banks can decide these based on their reporting requirements. It is their reports which decide the General Ledger groupings.
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T24 Accounting Set-up - For Consolidation
The financial reporting in T24 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'. 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 STMT.ENTRY or CATEG.ENTRY record, then a RE.CONSOL.SPEC.ENTRY (consolidation entry) is produced. All applications which update EB.CONTRACT.BALANCES, these movements are updated on-line to work files (CONSOL.UPDATE.WORK for both STMT.ENTRY and RE.CONSOL.SPEC.ENTRY) and PL.CONSOL.UPDATE.WORK (For CATEG.ENTRY). These work files hold the movements CRF record key-wise, and used to update the CRF during COB. For FOREX application RE.CONSOL.SPEC.ENTRY are generated during COB and update CONSOL.UPDATE.WORK file.
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T24 Accounting Set-up - For Consolidation
Rules for consolidation are to be indicated in CONSOLIDATE.COND table. It has two records, ASSET&LIAB and PROFIT&LOSS to indicate choices for Asset and Liability consolidation and Profit and Loss consolidations. The choices for consolidation could be same for both records or different to some extent also. These form the basis for default consolidation. It is also possible to have Company specific consolidation rules by having record Ids in the form of ASSET&LIAB.CCCCC and PROFIT&LOSS.CCCCC where CCCCC is the Id of an operating Company.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
CONSOLIDATE.COND allows selection criterion for consolidation based on information of CUSTOMER application and/or any Contract or Account files. It has pre-defined four Fixed parameters. They are (1) Application which holds the balance, (2) Currency market used for consolidation, (3) Position type and (4) Currency in which the Assets and Liabilities are held. Application names are indicated as 2 digit alpha characters like AC, LD, MM, FX, MG etc. T24 allows defining up to 99 currency markets. However, these are consolidated as 9 markets based on the first digit of the respective market. Markets 1, 10, 11 to 19 are consolidated as Market 1. Currently, position type of TR or IA is used. TR denotes Trading Position, whereas IA to denote IAS (International Accounting Standard) position. For entries that are to be reported under IA, the POSITION.TYPE on the account input should be set as IA. T24 supports multi currency environment. Hence, consolidation is automatically based on the Currency of Assets and Liabilities. It is also possible to define precious metals as currency and consolidate on that basis. CUSTOMER files hold all central non financial information with regard to a Customer such as the Customer’s Industry, Sector, Residence, Nationality and status. Various fields of the contract/account files contain information such as the Product Category, Dealing officer, Starting and ending dates, status etc. The variable parameters are chosen according to the reporting needs.
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T24 Accounting Set-up - For Consolidation
In addition to creating consolidation keys, T24 also generates the field names for selection in the file RE.STAT.REP.LINE in which we will be defining the lines for our reports. These are the same mandatory and optional choices made in CONSOLIDATE.COND for Assets and Liabilities and Profit and Loss. Not only the field names, but also their order of choice as made in CONSOLIDATE.COND records are maintained in RE.STAT.REP.LINE. Hence, the skeleton for reporting is determined by the method of consolidation.
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T24 Accounting Set-up - For Consolidation
FILE.NAME: Input can be CUSTOMER or LOCAL. If CUSTOMER is input, the variable declared will be part of the composite consolidation key for all applications. The information will be chosen from respective CUSTOMER records and for this purpose, the next field FIELD.NAME should also be input to indicate which field of CUSTOMER record should be chosen. If the value LOCAL is input, then the details for each application will be loaded in the multi value associate fields MULTI.VALUE.NO to CON.ON.END.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
We see the result of consolidation based on Sector choice. SECTOR is the second choice. Along with the four pre-defined choices, this now becomes the sixth place choice for consolidation. As per the choice made here, the sixth place of consolidation should be on the basis of Customer’s sector. Hence, the Account 17205 is consolidated along with all other accounts of Customers who all have the same sector – 1001 indicating Individual.
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T24 Accounting Set-up - For Consolidation
Here, the consolidation is based on customer field Sector. While, 1000, 1001-2000 are consolidated separately, those sectors other than these will be consolidated under REST consol key. Customer record with sector 3501 is getting consolidated under consol key LD.1.TR.USD.21051.REST.GB.6M….1000 which is the consolidation for LD balances with category 21051 and sector 3501 which is outside the range of 1000-2000.
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T24 Accounting Set-up - For Consolidation
Here SECTOR is chosen as the sixth choice for consolidation. It is a customer file. In this consolidation, it is possible to do so by choosing separate sector codes for one consolidation. Like that a group of sector codes can be chosen to do one consolidation. REST specified in START.RANGE is a key word. Here, the value – REST takes care of consolidation of all other values under one group. Consolidation key for the REST group is AC.1.TR.USD.1000; LD.3.TR.GBP.2000; MM.9.TR.JPY.REST.
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T24 Accounting Set-up - For Consolidation
Consolidation can also be done with default sector codes and subject to a specific field in customer file being equal to a particular value or values or range of values. In this case, the sector code 2002 falls outside the range and hence interpreted as REST and included in the key as RESIDENCE Field is equal to US as per the condition set in CONSOLIDATE.COND.
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T24 Accounting Set-up - For Consolidation
In this example the NATIONALITY “US” conforms to the Condition for the display of the RESIDENCE in the CAL-Key. Here is RESIDENCE “GB” displayed.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
If PRODUCT had been chosen as third user definable choice and source indicated as LOCAL ,3 will be indicated as MULTI.VALUE.NO and rules for that defined by using its associated multi value fields upto CON.ON.END. Validations exist for APPLICATION and LOCAL.FILE.NAME. If the variable element(s) are not defined for an application, then in the consolidation key of the records belonging to the application, the variable element(s) will have null value.
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T24 Accounting Set-up - For Consolidation
If PRODUCT had been chosen as third user definable choice and source indicated as LOCAL ,3 will be indicated as MULTI.VALUE.NO and rules for that defined by using its associated multi value fields upto CON.ON.END. Validations exist for APPLICATION and LOCAL.FILE.NAME. If the variable element(s) are not defined for an application, then in the consolidation key of the records belonging to the application, the variable element(s) will have null value.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
If PRODUCT had been chosen as third user definable choice and source indicated as LOCAL ,3 will be indicated as MULTI.VALUE.NO and rules for that defined by using its associated multi value fields upto CON.ON.END. Validations exist for APPLICATION and LOCAL.FILE.NAME. If the variable element(s) are not defined for an application, then in the consolidation key of the records belonging to the application, the variable element(s) will have null value.
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T24 Accounting Set-up - For Consolidation
LOCAL.FIELD.NAM is a field in application for which consolidation is desired. LOCAL.FILE.NAME is used to return consolidation KEY variable value. For instance, for a file to consolidate Group Accrual Balances, application name will be GROUP.ACCRUAL,LOCAL.FIELD.NAM for consolidation can be CATEGORY. This field can be single valued. One variable in this field may return different information for different applications.
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T24 Accounting Set-up - For Consolidation
It is also possible to combine values of a variable from a LOCAL file. Values can be indicated Application wise.A single value can be accumulated.A range of values can be accumulated .Values not specified can be accumulated as REST. If REST is not specified, missing values keep their own value.
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T24 Accounting Set-up - For Consolidation
Asset & Liability record type denotes the field name(s) of the file specified in LOCAL.FIELD.NAME Field which is used as a consolidation variable. For Profit & Loss (when LOCAL.FIELD.NAME Field has a value of "AL") it refers to the number of the key variable from the Asset & Liability key to be used as part of the P&L key. This field will either contain a field name or two field names separated by a slash ('/'). Two field names are used when the initial amount or initial time are to be calculated. When calculating the 'Initial Amount' the fields contain the currency code and the amount must be entered. When calculating 'Initial Time' two date fields must be entered. If two fields are entered then details must be entered in LOCAL.START and LCL.COMBINED. Asset & Liability record type denotes the field name(s) of the file specified in LOCAL.FIELD.NAME Field which is used as a consolidation variable. For Profit & Loss (when LOCAL.FIELD.NAME Field has a value of "AL") it refers to the number of the key variable from the Asset & Liability key to be used as part of the P&L key. It is possible to capture the difference as 0 (Call) or number between 1 to 999 (Days notice) or as days or months. They can then be suitably grouped and labeled . For example, Call, 7 days Notice, 3 months contract, Short term, Long term etc.
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T24 Accounting Set-up - For Consolidation
LOCAL.END is never used in this case. REST at the last value is mandatory. Any period>60M will be combined under the variable value REST. 0 stands for Call contracts, a number (e.g. 90) represents Notice Contracts with equal notice period, and D or M denotes normal contracts with a specific Period. The term specified in the LOCAL.START field is defined as the difference between the valuedate and maturity-date.
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T24 Accounting Set-up - For Consolidation
LOCAL.END is never used in this case. REST at the last value is mandatory. Any period>60M will be combined under the variable value REST. 0 stands for Call contracts, a number (e.g. 90) represents Notice Contracts with equal notice period, and D or M denotes normal contracts with a specific Period. The term specified in the LOCAL.START field is defined as the difference between the valuedate and maturity-date.
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T24 Accounting Set-up - For Consolidation
EXACT.RANGE is a Field in this application. If the value of the field is set to Yes, consolidation matching exact period like one month will take place. This consolidation will be suffixed with ‘E’. LCL.COMBINED is the code (value) under which a range defined in Fields LOCAL.START and LOCAL.END or a REST defined in LOCAL.START will be aggregated. If LCL.COMBINED is set to segregate selections as 7D (7days), 1M (1 month), and REST, and EXACT.RANGE set to YES, Consolidation will take place as follows: 1. Consolidation for 7 days 2. Consolidation for assets/liabilities with period above 7 days but less than 1 month and 3. Those with initial period of exactly 1 month will be consolidated as 1ME. when EXACT.RANGE is not set, third consolidation will not take place.
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T24 Accounting Set-up - For Consolidation
In this case, EXACT.RANGE Field is set to Yes. Hence, consolidation for period 1m to less than 3M is consolidated separately and consolidation of 12M is done separately . We can note the LMM consolidation keys with 12m and 12ME separately.
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T24 Accounting Set-up - For Consolidation
In CONSOLIDATE.COND Asset & Liability record , the field names of the file specified in LOCAL.FILE.NAME Field are used as consolidation variables. For Profit & Loss (when LOCAL.FILE.NAME Field has a value of "AL") it refers to the field names of the Asset & Liability key to be used as part of the P&L key. LOCAL.FIELD.NAM Field will either contain a field name or two field names separated by a slash ('/'). Two field names are used when the initial amount or initial time are to be calculated. When calculating the 'Initial Amount' the fields contain the currency code and the amount must be entered. LOCAL.CCY Field will contain a currency code to convert amount into a common currency. LOCAL.START Field allows definition of a single value to be accumulated or is the beginning of a range of values to be accumulated or denotes through input of value REST accumulation of all values not specified. LCL.COMBINED Field is the code (value) under which a range defined in Fields LOCAL.START and LOCAL.END or a REST defined in LOCAL.START Field will be aggregated.
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T24 Accounting Set-up - For Consolidation
Like time duration, range of principal amounts in MM are also consolidated. The case discussed here is that of consolidation of principal amounts. The values 3/2 specified against Local Field No mean that they are the field numbers 3 and 2 defined for Principal and Currency of the MM Contract. The furnished value of USD against Local CCY is meant to convert the Principal amounts in different currencies of MM Contract in to USD so as to segregate the converted principal amount into 3 discrete values like USD100T, USD500T and REST. Now you can verify the key value keeping the CONSOLIDATE.COND set up made and the data available in MM Contract and appreciate the value observed in 9th position of key, which is highlighted.
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T24 Accounting Set-up - For Consolidation
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T24 Accounting Set-up - For Consolidation
When contingent entry is to be passed, it is possible to pass either as a set of self-balancing entries or one sided entry alone. When a loan of USD 10,000 is proposed to be disbursed tomorrow (value date) but transaction is entered today, accounting entry / entries for today could be either Dr FORWARDB USD 10,000 or Dr FORWARDDB USD 10,000 and Cr FORWARDDBBL USD 10,000 This option is exercisable for Forex contracts through Field FX.SELF.BAL and for all other contracts through Field CONT.SELF.BAL. If self balancing entries are to be raised, this field will be set to Y. Contingents can be selectively revalued, Application wise and within an application any of the concerned contingent asset type. To revalue only contingent loans in MM, the needed setting would be FWD.REV.APP MONEY.MARKET FWD.REV.TYPE FORWARDDB If All applications are to be covered, then, ALL can be indicated in FWD.REV.APP. When contingents are revalued, System will change the contingent asset value suitably without any effect on Profit and Loss. CONT.SELF.BAL Field should be set to Y is self balancing entries are to be raised. This can be used for any Contract application.
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T24 Accounting Set-up - For Consolidation
KEY.APPLICATION Field is hard-coded and is used to establish linkage in general file(s) from Local (application) file. The purpose of field range KEY.APPLICATION to KEY.LOCAL.FIELD is to provide the link from Application file(s) to each of General files used. There must be a set of details loaded for each General file and application. If a link is left out, then an error condition arises. These fields are mandatory for each application. i.e. KEY.APPLICATION,KEY.GEN.FILE,KEY.LOCAL.FILE and KEY.LOCAL.FIELD have to be defined for each application under CONSOLIDATE.COND record. Currently, CUSTOMER is the only General file.
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T24 Accounting Set-up - For Consolidation
Care must be taken when upgrading T24 release to add new contingent asset types suitably, since they will not be added automatically. Cannot specify ALL in FWD.REV.TYPE Field. When contingents are revalued, there would be no effect on P &L.
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T24 Accounting Set-up - For Consolidation
It is possible to consolidate Limits of customers. LIMIT.TO.TAKE Field defines the amount field in the LIMIT record to be used for consolidation purposes. Here, ONLINE, ADVISED or INTERNAL amount field specified in the LIMIT record will be used when extracting details from the LIMITS system for asset type LINE. Application: LIMITS and Local File Name: LIMIT used to define the consolidation variables relevant to LIMIT application. LINE will contain the value of the field as set in LIMIT.TO.TAKE. UTIL will contain the value of total outstanding which is the total limit utilised.
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T24 Accounting Set-up - For Consolidation
Keys with Asset types LINE and UTIL formed are used to consolidate limits and utilised limits. Limit granted and/or portion utilised can be calculated and used for reporting . Consolidation entries raised only for Limits at the top most level for a credit line – say Global or Product.
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T24 Accounting Set-up - For Consolidation
POSITION.ENTRY Field defines whether Position entries are raised for the CRB. Input only allowed for record ASSET&LIAB.Values allowed: NONE - No interface to CRB required; SUMMARY - Movements to be booked for the total difference between yesterday and today’s positions. When the FCY asset is in GBP, two internal accounts like GBPUSD1055000100 and USDGBP1055000100 will be opened. One account is debited and other account is credited with equal amount of local currency(USD). These sum total of all these assets and Liabilities will be zero. Following Fields of CONSOLIDATE.COND should be updated KEY.APPLICATION POSITION KEY.GEN.FILE CUSTOMER KEY.LOCAL.FILE RE.POSITION.BALANCE KEY.LOCAL.FIELD 13 (CUSTOMER RE.CONSOL.SPEC.ENTRY generated with POSITION Id (except date) as DEAL.NUMBER, Like US00100011TR66GBPUSD.
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T24 Accounting Set-up - For Consolidation
POSITION.ENTRY Field defines whether Position entries are raised for the CRB. Input only allowed for record ASSET&LIAB.Values allowed: NONE - No interface to CRB required; SUMMARY - Movements to be booked for the total difference between yesterday and today’s positions. When the FCY asset is in GBP, two internal accounts like GBPUSD1055000100 and USDGBP1055000100 will be opened. One account is debited and other account is credited with equal amount of local currency(USD). These sum total of all these assets and Liabilities will be zero. Following Fields of CONSOLIDATE.COND should be updated KEY.APPLICATION POSITION KEY.GEN.FILE CUSTOMER KEY.LOCAL.FILE RE.POSITION.BALANCE KEY.LOCAL.FIELD 13 (CUSTOMER RE.CONSOL.SPEC.ENTRY generated with POSITION Id (except date) as DEAL.NUMBER, Like US00100011TR66GBPUSD.
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T24 Accounting Set-up - For Consolidation
Temenos University - May 2012
43
T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
Temenos University - May 2012
44
T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
Temenos University - May 2012
45
T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
Temenos University - May 2012
46
T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
Temenos University - May 2012
47
T24 Accounting Set-up - For Consolidation
1. Ans: False. For Assets and Liabilities consolidation (Accounts and contracts), choice of currency is automatic. It is the fourth choice by the System in CONSOLIDATE.COND for Assets and Liabilities 2. Ans: False. In CONSOLIDATE.COND, this would be the first choice. The first four mandatory choices will not appear in CONSOLIDATE.COND 3. Ans: False. Choices selected for consolidation has no relevance to self balancing non contingent entries. 4. Ans: True. A Bank can set duration as choice in CONSOLIDATE.COND only for some contracts but not for accounts. This is possible in T24
Temenos University - May 2012
48
T24 Accounting Set-up - For Consolidation
Temenos University - May 2012
49
T24 Accounting Set-up - For Consolidation
For Profit and Loss consolidation, CONSOLIDATE.COND has one fixed parameter. This could be either PL or CP, which stand for normal Profit and Loss or Contingent Profit and Loss. CP is used under Value dated accounting for PL items with future value date. PL is used under all other cases when PL item is affected the same date. Upto 12 User definable parameters can be chosen from a single value field. Choices can be from two general files of CUSTOMER and CATEG.ENTRY or Local files, which could be any contract or account file. However, choice for Local files can be made only if the same had been chosen for Assets and Liability consolidation. Hence, Assets and Liability consolidation should be designed partly with Profit and Loss consolidation also in mind.
Temenos University - May 2012
50
T24 Accounting Set-up - For Consolidation
FILE.NAME: Input can be CUSTOMER or LOCAL. If CUSTOMER is input, the variable declared will be part of the composite consolidation key for all applications. The information will be chosen from respective CUSTOMER records and for this purpose, the next field FIELD.NAME should also be input to indicate which field of CUSTOMER record should be chosen. If the value LOCAL is input, then the details for each application will be loaded in the multi value associate fields MULTI.VALUE.NO to CON.ON.END.
Temenos University - May 2012
51
T24 Accounting Set-up - For Consolidation
Temenos University - May 2012
52
T24 Accounting Set-up - For Consolidation
FILE.NAME: Input can be CUSTOMER or LOCAL. If CUSTOMER is input, the variable declared will be part of the composite consolidation key for all applications. The information will be chosen from respective CUSTOMER records and for this purpose, the next field FIELD.NAME should also be input to indicate which field of CUSTOMER record should be chosen. If the value LOCAL is input, then the details for each application will be loaded in the multi value associate fields MULTI.VALUE.NO to CON.ON.END.
Temenos University - May 2012
53
T24 Accounting Set-up - For Consolidation
We see the result of consolidation based on Sector choice. SECTOR is the second choice. Along with the four pre-defined choices, this now becomes the sixth place choice for consolidation. As per the choice made here, the sixth place of consolidation should be on the basis of Customer’s sector. Hence, the Account 17205 is consolidated along with all other accounts of Customers who all have the same sector – 1001 indicating Individual.
Temenos University - May 2012
54
T24 Accounting Set-up - For Consolidation
If a particular variable in the CRF key is required only for specific conditions, then the condition details are entered in CONSOL.ON.FILE to CONSOL.END Fields. For Profit and Loss consolidation, only if FILE.NAME Field is CUSTOMER or CATEG.ENTRY, then these choices are exercisable. CUSTOMER should be input in CONSOL.ON.FILE. Viz. if the conditions can be laid based on a given choice in CUSTOMER. CONSOL.ON.FIELD should then be a field name of CUSTOMER. The field name input should relate to a single-valued field. Local reference field names are accepted with a suffix. Condition details like Start and end of a range can be indicated through CONSOL.START and CONSOL.END Fields. You can observe from the above screenshots that Sector Code would appear in key only when it is between 1000 and 2000. From the other screenshot you can observe that PLDepartment would appear in key only if resident of USA. While appearing in the key, it would be grouped as LOAN for Department Officers between 1 to 100 and as PYMT for those between 2001 and 2100. Other officers’ codes would appear individually provided their residence is US.
Temenos University - May 2012
55
T24 Accounting Set-up - For Consolidation
Temenos University - May 2012
56
T24 Accounting Set-up - For Consolidation
In PL consolidation, General files are CUSTOMER and CATEG.ENTRY. While Local file can only be AL which means Local files chosen in ASSET&LIABILITY record of CONSOLIDATE.COND. The Local key components used for A/L record can be mapped into P&L record. LOCAL.FIELD.NAME can be of fields discussed for local files in ASSET&LIABILITY record.
Temenos University - May 2012
57
T24 Accounting Set-up - For Consolidation
Once the splits have been carried out on the Asset and Liability key, they can be mapped into the Profit and Loss key thus ensuring that the splits are same. This means that any subsequent change in Assets and Liability consolidation will automatically be valid for Profit & Loss consolidation. Only the desired Assets and Liability consolidation that is to be mapped for Profit and Loss also are chosen in CONSOLIDATE.COND for Profit and Loss. Any unique consolidation meant for Assets and Liability alone can be omitted.
Temenos University - May 2012
58
T24 Accounting Set-up - For Consolidation
Once the splits have been carried out on the Asset and Liability key, they can be mapped into the Profit and Loss key thus ensuring that the splits are same. This means that any subsequent change in Assets and Liability consolidation will automatically also be valid for Profit & Loss consolidation. Only the desired Assets and Liability consolidation that is to be mapped for Profit and Loss also are chosen in CONSOLIDATE.COND for Profit and Loss. Any unique consolidation meant for Assets and Liability alone can be omitted.
Temenos University - May 2012
59
T24 Accounting Set-up - For Consolidation
Temenos University - May 2012
60
T24 Accounting Set-up - For Consolidation
CPL consolidates only CATEG.ENTRY records. Here key application is PROFIT.LOSS. The Fields KEY.APPLIATION to KEY.LOCAL.FIELD provides link application files to general files. The general files are CUSTOMER and CATEG.ENTRY. Local file is CATEG.ENTRY. Local field is PRODUCT.CATEGORY.
Temenos University - May 2012
61
T24 Accounting Set-up - For Consolidation
Contingent P & L entries can be consolidated under value dated accounting system in account based applications. This feature is available from R7. Here, the system id or Fixed Parameter should be CP instead of PL. Consolidation of CP is done as one sided entry or self balancing entries. Self balancing entries raised by setting Field CONT.SELF.BAL to ‘Y” and SYSTEM.ID should be CB.
Temenos University - May 2012
62
T24 Accounting Set-up - For Consolidation
Temenos University - May 2012
63
T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
Temenos University - May 2012
64
T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
Temenos University - May 2012
65
T24 Accounting Set-up - For Consolidation
Once the consolidation rules have been defined, T24 automatically forms the consolidation keys. For Assets and Liabilities, the keys are held in the file CONSOLIDATE.ASST.LIAB. Let us examine a typical Key, say AC.1.TR.USD.1000.1100.GB. This key would fetch balances of USD Current Account balance of British residents belonging to Sector 1100. The first four elements of this key come from the four mandatory choices. Hence it is an account in USD currency. The other elements are as defined in CONSOLIDATE.COND. It is presumed that this Bank has chosen Sector and Residence as the other two choices from General file as they could be picked from the respective Customer records. From the underlying application ACCOUNT, it has chosen Category code as product, which translates to Current account for a value of 1000. Within this key, the balances of several such current accounts are consolidated and held together. Some of the accounts may be having credit balance and all the credit balances are totaled and shown together. Similarly, some of these current accounts may have debit balance and all their balances are totaled together. The interest accruing on these accounts will again be interest payable for accounts with credit balances and interest receivable from debit balances. They are consolidated under two different headings. All these are Asset types. For accruals and contracts, balances are further shown with scheduled dates.
Temenos University - May 2012
66
T24 Accounting Set-up - For Consolidation
CPL key will have the details of PL/CP ,General files and local files from CAL chosen. The keys also has balances currency wise. DATE.LAST.UPDATE Field shows the Last date of update of the CPL record. Please note that CPL records gets updated only whenever there is a movement in the record or at month beginning. CURRENCY Field shows Currency of Income / expenditure originally booked. BALANCE Field shows Accumulated PL balances from month beginning till date prior to DATE.LAST.UPDATE as local currency equivalent. CCY.BALANCE Field indicates the same but in currency in which earned / incurred.
Temenos University - May 2012
67
T24 Accounting Set-up - For Consolidation
DEBIT.MOVEMENT Field shows debit movement on DATE.LAST.UPDATE, as local currency equivalent. CCY.DEBIT.MVE Field indicates the same in currency in which earned / incurred. CREDIT.MOVEMENT Field shows credit movement on DATE.LAST.UPDATE as local currency. Equivalent CCY.CREDT.MVE Field indicates the same in currency in which earned/ incurred. BALANCE.YTD Field indicates the accumulated balance from start of financial year up to the previous month end as local currency equivalent.CCY.BALANCE.YTD Field indicates the same in currency in which earned / incurred.
Temenos University - May 2012
68
T24 Accounting Set-up - For Consolidation
1. Ans: False. Option for self balancing contingent entries has no connection with CP and PL keys 2. Ans: False. Option set in CONSOLIDATE.COND for Profit and Loss items is common for both. 3. Ans: False. Sector can be chosen from General file CUSTOMER in CONSOLIDATE.COND for Profit and Loss items, even if it had not been chosen for Assets and Liability consolidation 4. Ans: False. Application level choices made for Assets and Liabilities consolidation cannot be changed for Profit and Loss consolidation.
Temenos University - May 2012
69
T24 Accounting Set-up - For Consolidation
Temenos University - May 2012
70
T24 Accounting Set-up - For Consolidation
We have now come to the end of this course. We hope that you have attained a high level understanding of T24 and would like to welcome you to join us in our subsequent courses. Thank you!
Temenos University - May 2012
71
T24 Accounting Set-up - For Consolidation
Temenos University - May 2012
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