The sample portfolio of the solution is described here.
Each individual deal can be treated for a selection of posting dates.
For loans settlement date is applied.
The accounting logic differntiates between
- Maturities which are part of the Cashflow-Plan and trigger an accounting event at point of time the maturity date is reached, regardless of a real payment. Maturities are always bookd against daily payables/receivables. and profit&loss (e.g. interest, fees) or balance sheet (e.g. capital redemption)
- Payments which consider the actual payment of a maturity. The posting date and even valua can differ from the maturity the payment is assigned to. Payments are always bookd against daily payables/receivables and settlement account.
- Periodical valuation elements which occur in a specific frequence, e.g. interest accrual, amortisation of transaction costs, risk provision etc.
For payments of loans different concepts are supported:
- Delivery of real payments: In case the entity can deliver real payments based on the granularity of maturities, each delivered record will be booked separately. In case the sum of delviered real payments differs from the sum of maturities, the account "Daily payable/receivable" shows a general ledger account balance which is not equal "0".
- Delivery of "Daily paybles/receivables": In case the entity cannot deliver real payments based on the granularity of maturities, two aspects need to be considered:
- The entity shall deliver on individual deal basis the information of daily/paybles. In this case the delivered measures will be booked and ensure the disclosure of the appropriate"Daily payable/receivable" on individual deal level.
- Please note: In case the entity does not deliver real payments, they will be generated automatically.
In conclusion, the following accounting logic at a glance will be applied in this case:
Maturities cause the booking against "Daily payables/receivables"
Real payments generated by FlexFinance book tthe "Daily payables/receivables" against settlement account.
Delivered "Dailypayables/receivables" are booked against settlement account.
In case the entiry cannot deliver real payments on the granularity of maturitiees, the following settings need technically to be applied in FlexFinance:
The model parameter "Generate synthetical real payments" has to be activated in the following models :
- VanillaLoans
- fernbach.ETLStraightThrough
- fernbach.CalculationAnalyzer
- fernbach.CalcAnalyserInterface
- fernbach.RestartDealProcessing
- fernbach.ImpairmentManagerInterface
- Overdue payments can be delivered in slave table OverdueBalancesNotAffectingAccr.
The following sections describe the output generated on individual deal/account level by those Output Interfaces RESTFul-API which are related to financial accounting requirements.
In a first shot results have been documented for the accounting purpose IFRS. Hence the offered service supports various GAAPs and is not limited to IFRS.