Month end Realised & Unrealized Accounting

Realised Accounting

Realised accounting is normally done every business day and a final check is done at the end of the month.

Start by opening the "Accounting" view:

1. In "Accounting" view - make sure there are no accounting entries in TAB Error, TAB Update FX rates, and TAB Incomplete.
2. Check that all Deals have status confirmed.
3. In the "Fixing" view - update all missing interest rates before month end.
4. In the "FX rates" table - check that there are rates per last business day of the month.
5. Approve and export all realised accounting.

Unrealised Accounting

During month end, all unrealised accounting such as accrued interest, market valuation etc. must be posted to the accounts. 

Before running unrealised accounting, check that all new deals are confirmed and that all floating rate transactions have been updated with the correct interest rate. 

Open the "Accounting" and "Accounting of Unrealised" views:

To run unrealised accounting during month end, follow the steps below:

1. In "Accounting" view - make sure there are no accounting entries in TAB Error, TAB Update FX rates, and TAB Incomplete.
2. Check that all Deals have status confirmed.
3. Check FX rate table and Interest rate table rates needed for month end accounting. Update any missing rates.
4. Run month end accounting reports (FX market value, Balance position: Loan FX gain loss, accrued interest, accrued fees etc) and check the figures and that there are no error messages in the reports.
5. Open "Accounting of Unrealised" view.
6. Select report "Accounting of Unrealised".
7. Enter month end date in BALANCE DATE field. 
8. Normally you should leave the FXRATE END empty. The system will then automatically use the rates for balance date or the rates closest to the balance date if there are no rates for the balance date. 
9. For calculation of market values (if applicable), the Interest Rate table will be fetched for balance date or the date closest to balance date.
10. Click icon Run to generate the unrealised accounting.
11. Unrealised accounting is generated for Deals in status Confirmed and unrealised accounting will also be generated for Deals that have status New or Modified. Deals in status New are not visible in the "Accounting" view but you can review them on the Deal, see section "How to delete unrealised accounting" below.
12. Open "Accounting" view and make sure no unrealised accounting are in TAB incomplete. Possible causes could be that interest fixing is not done or an FX rate is missing. When the errors have been corrected, run "Accounting of Unrealised" again. See also section "Unrealised Accounting in Incomplete TAB" below.
13. All correct unrealized accountings will appear in TAB preliminary and need to be checked and approved. 
14. Finally, the accounting entries are exported to be sent to the ERP system. 
15. NOTE: All unrealized accounting will, when you press Run, also get a reversal accounting the first day of the next month. The reversal accounting also needs to be approved and exported to the ERP system.  

Rerun unrealised accounting

Open "Accounting of Unrealised" view, select the correct date and click Run. All created unrealised accounting entries will be updated with changes in market data, deals or accounting / dimension rules. If the accounting would not be updated, then delete the existing unrealised accounting on the month end date before you run it again.

NOTE: If the unrealised accountings are approved or exported, then it is not possible to update the accounting. You must undo export and undo approved first. It is possible undo "approved" in the "Accounting" or "Accounting Overview" views. You must open "Accounting Overview" to undo export.

Unrealised accounting in Incomplete TAB

If a floating rate transaction has not been updated and has "Missing" in Fixing Status, the unrealised accounting will appear in TAB Incomplete in the "Accounting" view. Fix the interest and rerun "Accounting of Unrealised". 

If FX-rates are missing in the FXRATE END table, the unrealised accountings will also appear in TAB Incomplete in "Accounting" view. Add the missing FX-rates in the table and rerun "Accounting of unrealised".

You can rerun accounting of unrealised for all deals or for specific Deal ID(s). Open report Settings and select an interval for Deal ID(s) if you prefer to run Accounting of Unrealised for a limited number of Deals.

How to delete unrealised accounting

If you want to delete a single transaction, then go to the Deal and

Click on "...", choose Accounting and tick the Unreal accounting and click Remove.

To delete several unrealised accountings in one batch, go to "Accounting Overview". Filter on Event time Unreal and Date time. Mark all accountings and click Remove.