Accounting Rules

Accounting Rules  

Back Office > Accounting > Accounting Settings > Accounting Rules

If you want to do automatic accounting when entering a deal, the accounting rules for each deal type needs to be defined in Accounting Rules. E.g.  Bank account transaction, FX, Loans, Bonds, Interest Rate Swaps, Fees etc. If no accounting files should be created for certain items a "No Accounting" rule must be set up.   

The rules will be run in order (numeric order) so when there is a match the system will use that specific rule according to the selection, i.e. the system will first look at Rule no 1, then Rule no 2 etc. Therefore you should start with the most narrow selection and then the most general at the end. For example an FX should be booked in a certain way but if the FX has the Trader tag "Karin" and Entity tag "Treasury"  different accounts should be used. Then the rule that stipulates the FX with Tags Karin and Treasury is applied first and the more general accounting rule for FX there after.

To add a new rule press the Plus sign "Add Rule", choose the Accounting Program Type (Deal Type) for which you want to enter rules for. Update the Selection, give the the Rule an explaining name, choose Net, Gross or No Accounting in Accounting Model ID, and choose which Chart of Account to be used.

When the rule has been created with accurate selection, accounts need to be filled in for the different events. Accounts in the ledger are taken from the Chart of Accounts and other values are taken from the set up in the menu "Accounting Amounts Types" where all types of instruments (Program type) are shown. This set up already exists and does not need to be manually entered. Payment Date is used for realized transactions and Unreal is used for unrealized transactions. Save when the Accounting rule is completed.

To move the order of the Accounting rule entered stand on the rule and use the Arrow signs. Press Save once the order is as you want it.

If you need to apply the Rules to deals already entered, stand on the rule and the "Update Accountings" button: