Configuring Multi-GAAP

The following set-up is required regardless of whether manual or system generated entries are required.

FX POSITION TYPE

The FX.POS.TYPE application is used to split the position and accounting of the bank into logical divisions. In particular, the usage of this application is mandatory when using GAAP or IFRS financial reporting. Although prefixed by FX, the table is commonly used in Temenos Transact and is referred to by CATEGORY, ACCOUNT and many accounting or position parameter applications.

When used for GAAP reporting, it is recommended that the two-digit ID is set to the same ID used by the country (that is, IN for India, GB for the UK, CH for Switzerland and so on). The TR record is the original and default record used by Temenos Transact and must be available. The IF record is used for IFRS reporting and must be available if IFRS reporting is required.

In common usage, the ID of the table is used but for contingent and self-balancing an extended id identifier is needed. It is recommended that the following style of values is followed:

• For PL, prefix the position type with PL (for example, PLIF).
• For Contingent P/L, prefix the position type with CP (for example, CPIF).
• For self-balancing P/L, prefix the position type with CB (for example, CBIF).

The user can define their own values of up to four digits for each of these.

CATEGORY

For each FX.POS.TYPE, category codes must be set up, which are used by the DC.PARAMETER and PL.CLOSE.OUT applications. The Position Type field in CATEGORY determines which GAAP the category belongs to. If left blank, the system automatically defaults to TR, and once the value is set, this field cannot be changed.

To populate the Position Type field, the Category code must be in the 10000 – 19999 range, to create internal accounts.

If an internal account already exists for the Category, the system does not allow the Position Type field to be amended.

PL.CLOSE.PARAMETER

In the PL.CLOSE.PARAMETER, the following multi-value set provides the functionality to define categories to be used for the year-end close out process for each FX.POS.TYPE.

• Position Type
• Close Category

In the following example, these fields have been multi-valued so that both TR and IN FX.POS.TYPE are included.

REVALUATION.PARAMETER

If revaluation entries are required for different FX.POS.TYPE entries, the REVALUATION.PARAMETER must be updated with a new multi-value set. The Applic Id field must contain the value AL.XX, where XX is FX.POS.TYPE. In this example, the IN FX.POS.TYPE has been added. The required CATEGORY and TRANSACTION codes need to be set up prior to this.

EB.POSITION.PARAMETER

If position accounting entries are required for different FX.POS.TYPE entries, the Ccymkt Postype field in the EB.POSITION.PARAMETER must be updated with the required category for the specific position type. The 'Postype' in Ccymkt Postype must be a valid FX.POS.TYPE. This is used to form position accounts based on the currency market and position types populated in the currency position entries.

Internal Accounts

New internal accounts must be opened for the Categories created for the different FX.POS.TYPEs. The category range should be between 10000 and 19999. If internal accounts are opened in the system, the Position Type field is defaulted to TR.

In this example, an internal account is created for the IN FX.POS.TYPE. This account is used to raise suspense entries created by the system during the COB.