T24 Accounting Introduction

Agenda
Accounting Introduction

01 Learning Objectives
02 Accounting Overview
03 Accounting Setup
04 Accounting Entries
05 Basic Parameters of Accounting

2
Learning Objectives
Accounting Introduction > Learning Objectives

Accounting Overview and linkage for reporting

Core Dependencies

Dates in transactions

Accounting Setup

Accounting Entries generation

Basic parameters of accounting

3
Agenda
Accounting Introduction

01 Learning Objectives
02 Accounting Overview
03 Accounting Setup
04 Accounting Entries
05 Basic Parameters of Accounting

4
General Ledger – Traditional System
Accounting Introduction > Accounting Overview

COB

Accounts
pooled into
ledgers

Ledgers
cluster under
Product GL balances
product
Balances set to PL and
consolidated Balances
to GL sheet

5
Virtual Accounting – T24 system
Accounting Introduction > Accounting Overview

General Ledger
Reporting
with definable
Requirements
groupings

Elements for GL heads

definable

GL Heads auto formed

Auto Regrouping when

grouping element changed

Maintains opening &

closing balances and debit
& credit movements

6
Accounting Setup
Accounting Introduction > Accounting Overview
Any transaction in bank rest AL &/or PL

NON STMT.
CONTINGENT ENTRY
AC BASED

BUISNESS
CONTINGENT
CONTRACT RE.CONSOL.
BASED SPEC.ENTRY
BANKING NON
CONTINGENT
CATEGORY
CODE
PRODUCT
BASED

YEILD CATEG.
ENTRY

NON
PRODUCT
BASED

7
Accounting & Reporting
Accounting Introduction > Accounting Overview

Financial accounting and reporting is very flexible thanks to a unique design

Accounting Consolidating Reporting

Fully
Accounts AL Keys
User definable

Contracts HO reporting
PL Keys
requirement
Profit & Loss
Regulatory reporting
CATEGORY CODE requirement

Balance Currency
sheet reports

At the option Profit Other

Major rules
& Loss reports
of Client User definable
8
Core Dependencies
Accounting Introduction > Accounting Overview

GEOGRAPHIC CURRENCY. BASIC.RATE SECTOR DATE

DEPT.LEVEL LANGUAGE INDUSTRY
.BLOCK MARKET .TEXT

COUNTRY DEP.ACCT.
OFFICER
CUSTOMER.
STATUS

CURRENCY.
REGION
PARAM
TARGET

HOLIDAY CURRENCY RELATION

CUSTOMER

FORWARD. PERIODIC. BASIC. DEALER.

RATES INTEREST INTEREST DESK

CORE
FINANCIAL STATIC
CUSTOMER

9
CORE tables useful for consolidation
Accounting Introduction > Accounting Overview

CURRENCY.MARKET

Up to 9 Main
Markets with 10
Sub Markets
each. Up to 99
markets

9 Sub Markets
consolidated to
respective Main
Market

Market wise
Exchange Rates
can be specified

10
CORE tables useful for consolidation
Accounting Introduction > Accounting Overview

CUSTOMER.DEFAULT
ACCOUNT.CLASS
SECTOR

RESIDENCE Issued by Central

NATIONALITY banks
CUSTOMER
COUNTRY CORE INDUSTRY
TABLES

Can be DEPT.ACCT.
modified at OFFICER
transaction When CUSTOMER is
level modified, T24
reconsolidates on
updated values

11
CUSTOMER information for Consolidation
Accounting Introduction > Accounting Overview

DEPT.ACCT.OFFICER

INDUSTRY

SECTOR

RESIDENCE

12
Agenda
Accounting Introduction

01 Learning Objectives
02 Accounting Overview
03 Accounting Setup
04 Accounting Entries
05 Basic Parameters of Accounting

13
Dates in Accounting Entries
Accounting Introduction > Accounting Set-up

Not for
Booking Date Value Date internal and
T24 date on which the Entry is Date on which the entry is to be PL entries
generated given value for interest purposes

DATES in
T24

Exposure Date Processing Date

The date on which credited funds The date on which transaction is
available to customer to be processed for posting

Exposure date
Not for Internal cannot be less
and PL entries than value
date

14
T24 Applications
Accounting Introduction > Accounting Set-up

ACCOUNT BASED CONTRACT

FUNDS.TRANSFER LD.LOANS.AND.DEPOSITS

TELLER LETTERS.OF.CREDIT

DATA.CAPTURE FOREX etc

Move money between Generate contracts and

Accounts and PL items. move money between
Cannot move money from & contract and Accounts /
to Contracts PL items

15
Accounting System– Product Overview
Accounting Introduction > Accounting Set-up

Accounting

Trade dated Value dated Trade Dated GL

Accounts & Contracts Receivable/Payable

Securities

FT,TT,DC,IC & LD.LC.FX etc…

SC

16
Accounting System - Detailed View

Criteria Trade dated system Value Dated System Trade Dated GL System
Account Balances update On Trade Date On Value Date On Value Date
Account Statements update On Trade Date On Value Date On Value Date
On Trade Date ( Shown as
On Value Date ( Shown as
Movements in GL On Trade Date Receivable/Payable in Balance
Contingent items in Balance Sheet )
Sheet )
Foreign Currency Positions On Trade Date On Value Date On Trade Date
TD - Special entries with Non-
TD- Contingent entries -
Contingent asset types -
RE.CONSOL.SPEC.ENTRY
RE.CONSOL.SPEC.ENTRY
TD - Non-contingent - VD - Reversal of contingent entries -
Generation of entries VD- Reversal of Special entries -
STMT.ENTRY RE.CONSOL.SPEC.ENTRY
RE.CONSOL.SPEC.ENTRY
VD - Non-contingent entries -
VD - Non-Contingent entries -
STMT.ENTRY
STMT.ENTRY
Contingent - Non-Contingent ( Special Entries )
Non-Contingent - CONTCR/CONTDB/CONTCRBL/CO -PAY/RECEIVE
Asset Types used
DEBIT/CREDIT NTDBBL Non-Contingent - DEBIT/CREDIT
Non-Contingent - DEBIT/CREDIT

17
Workshop 1 - ACCOUNT.PARAMETER
Accounting Introduction > Accounting Set-up

 Check the set-up for ACCOUNT.PARAMETER

 If Trade dated accounting has been opted for the System, then opt for
Trade Dated GL accounting for FT application

 Log out and log in again. In case of Browser interface, TC Server should be
stopped and restarted, before logging in again

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Workshop 1 - Solution
Accounting Introduction > Accounting Set-up

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Agenda
Accounting Introduction

01 Learning Objectives
02 Overview on Accounting
03 Accounting Setup
04 Accounting Entries
05 Basic Parameters of Accounting

20
Main Files for Accounting Entries
Accounting Introduction > Accounting Entries

STMT.ENTRY Entries affecting

Account balances
(Non contingent)

ASSETS & LIABILITIES

RE.CONSOL. Entries affecting

SPEC.ENTRY all other
Assets & Liabilities

PROFIT & LOSS CATEG.ENTRY Entries affecting

PL Heads

21
Main Files – Basis for generation of the GL-Reports
Accounting Introduction > Accounting Entries

Entries affecting STMT.ENTRY

Account balances
(Non contingent)
Consolidation of
ASSETS & LIABILITIES

REPORT CREATION
Entries affecting RE.CONSOL. HEADER
all other SPEC.ENTRY
Assets & Liabilities LINE COLUMN
…………...
…………..…

Consolidation of
Entries affecting CATEG.ENTRY PROFITS & LOSSES
PL Heads

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Features of Accounting Entries
Accounting Introduction > Accounting Entries

Possible functions
– See and Print
only

Accounting
Entry

Generated
Online/during COB

Possible to define
Local Reference
fields

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Features of Accounting Entries
Accounting Introduction > Accounting Entries

 Unique ID by which the Entry may be identified

 Id : 120220032940745.010001
5 digit date expressed as the number of days since 31ST
Dec 1967
5 digit user number
5 digit time in seconds Transaction that
2 digit decimal places in seconds generates the entry
captures the accounting
4 digit sequence number (at the end)
entry Id and the
sequence number

If a transaction generates several entries, last part – Sequence number

distinguishes them
If there is a combination of different types of entries, then they could have
same sequence number also

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Transaction Codes
Accounting Introduction > Accounting Entries

• Defines transaction code for STMT.ENTRY and

CATEG.ENTRY
• Transaction code linked through parameter
TRANSACTION tables
• Default value for Value date and Exposure Date
for Data Capture- and Teller-Transactions

• Transaction code for

RE.CONSOL.SPEC.ENTRY
RE.TXN.CODE • Hardcoded Transaction codes
• Reflects stage of the contract or event

25
Transaction Codes
Accounting Introduction > Accounting Entries

TRANSACTION table for Hard coded for

STMT.ENTRY and RE.CONSOL.SPEC
CATEG.ENTRY ENTRY in
RE.TXN.CODE

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Accounts in T24

Accounts – For creation and maintenance of all accounts handled by T24

Balances
are held in
ECB

• Related to a customer or client or counterparty

Customer • Numeric Id – Customer id, Category, Currency are
Accounts mandatory
• Interest and charges applicable

• For the Assets and Liabilities of the bank – not

linked to customer id
• Interest and charges cannot be applied
Internal • Id is ISO Currency code - Category code - 4 digit
Accounts serial number in a Multi-Company - Additional 4
digits of the Company Sub-division Code in Multi-
Book
• Mandatory fields ACCOUNT.TITLE, SHORT.TITLE,
MNEMONIC and ACCOUNT.OFFICER
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Workshop - 2
Accounting Introduction > Accounting Entries

 Use User Menu > Account > Open Savings Account-LCY

 Open a Customer account in USD for your customer using the category
code for savings account (SS1)

 Use User Menu > Account > Open Internal Account

 Open an internal account in USD using an internal category code for
Computer Software Purchased

 Use User Menu > Account > Open Current Account

 Open Two current accounts for your customer in USD (CA1 and CA2)

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop 6-Solution
Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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GENERATION OF ENTRIES
Accounting Introduction > Accounting Entries

Trade Dated Accounting

• Only Non-contingent entry – STMT.ENTRY

• Balances are updated online and during COB
immediately Only
NON-
• Value date for interest purpose CONTINGENT
STMT.ENTRY

Value Dated Accounting

• Generates Future value dated STMT non

contingent entry – Takes effect on value date
• RE.CONSOL.SPEC.ENTRY as “contingent” RE.CONSOL.
entries and reversal entries SPEC.ENTRY &
Future value
• Note - Forward dated STMT.ENTRY generated dated
for contract applications except SC. STMT.ENTRY

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GENERATION OF ENTRIES
Accounting Introduction > Accounting Entries

Trade Dated GL Accounting

RE.CONSOL
. SPEC.ENTRY
• Generates Future value dated STMT non & Future
value dated
contingent entry – Takes effect on value date STMT.ENTR
• Between the booking date and value date, Special Y
entries are raised with Non-contingent asset types
• Balances in GL are updated on Trade date under
“Payable/Receivable”
• No contingent entries raised

33
Value Dated Accounting / TDGL Accounting
Accounting Introduction > Accounting Entries

Future Value Dated Entry

• Id same as STMT.ENTRY - Processing Date effects
contingent to Non - Contingent
• Future value dated transactions beyond cash flow ladder
expands the cash flow days for that account
Forward Value Dated Entry
• F Stmt entry Triggers actual STMT.ENTRY FORWARD
DATED ENTRY: Id: F20010101.306771820300
• « F » Forward contingent entry, Future value date:
YYYYMMDD, 5 digit user number, 5 digit time in seconds
since midnight, 2 digit sequence number
• Foward entries within the ladder of the account or
ACCOUNT.PARAMETER condition would be updated for
available funds ladder.

34
Workshop - 3
Accounting Introduction > Accounting Entries

 Use User Menu > Retail Operations > LCY Drafts Issue/Acct Trfr >
Transfer between Accounts
 Transfer USD 12,345 from Account CA2 to Account CA1 with today’s
value date
 Observe the overrides, if any
 Authorise the transaction

 Use User Menu > Finance >Journal Facility > Accounting Entries
Enquiry > List of Transaction Entries
 Look at the STMT.ENTRY records generated by drilling down the
transaction entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop -– Solution
8 Solution
Accounting Introduction > Accounting Entries

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Workshop – 4
Accounting Introduction > Accounting Entries

 Use User Menu > Retail Operations > LCY Drafts Issue/Acct trfr
> Transfer between Accounts
 Transfer USD 15,000 from Internal Account for Computer software to
your customer’s USD current account – 1
 Let it be back value dated by 5 days
 Authorise the record

 Use Command Line ENQ TXN.ENTRY

 Look at the accounting entries ,

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop - 5
Accounting Introduction > Accounting Entries

 Use User Menu > Finance > Journal Facility > LCY Transaction Entries
 Transfer USD 2,500 from Account CA1 to your Customer Special
Savings
Account
 Let the debit value be after 1 month and credit value 16 days after that

 Use User Menu > Retail Operations > Account > Account Entries >
Entries for Today
 See the effect of Trade Dated Accounting by comparing the previous
balance of CA1 with that of present balance
 It may be observed that the balances got affected immediately as DC is
under Trade Dated Accounting

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Workshop - Solution
Accounting Introduction > Accounting Entries

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 – 11 Solution
Workshop -Solution
Accounting Introduction > Accounting Entries

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Workshop Solution
Accounting Introduction > Accounting Entries

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Workshop - 6
Accounting Introduction > Accounting Entries

 Use User Menu > Retail Operations > LCY Drafts Issue/Account Trfr >
Transfer between Accounts
 Transfer USD 2,000 from Account CA1 to your Customer Special
Savings Account
 Let the debit value be after 1 month and credit value 15 days after that
 Get the record authorised

 Use Command Line and run the enquiry ACCT.BAL.TODAY

 Look at the Account balances and observe the effect of value dated
accounting
 Please note FT transaction of USD 2000 through the Account CA1 to
Customer Special Savings Account

 View the EB.CONTRACT.BALANCES record for the debit and credit

accounts used in the above Transfer

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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STMT.ENTRY - Enquiries
Accounting Introduction > Accounting Entries

Movements Movements &

and balances balances posting
for a booking date=system date
period

STMT.ENT.BOOK STMT.ENT.TODAY

%ACCT.ENT.FWD

Forward
dated entries
from Account

53
STMT.ENTRY – a Sum up
Accounting Introduction > Accounting Entries

RE.CONSOL.SPEC.ENTRY

Value dated
FUNDS TRANSFER Accounting / STMT.ENTRY
TELLER TDGL
DATA CAPTURE ONLINE
SECURITIES ACCT.ENT.TODAY BALANCE

Trade dated ONLINE

STMT.ENTRY ACCT.ENT.TODAY BALANCE
Entries affecting Accounting
Account balances

STMT.ENTRY ACCT.ENT.FWD

MONEY MARKET F entry

LOANS & DEPOSITS

FOREX etc

ONLINE
STMT.ENTRY ACCT.ENT.TODAY BALANCE
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Quiz
Accounting Introduction > Accounting Entries
Xxx?
STMT.ENTRY is so named as it is used to produce Account
statements

If the transaction date and value date are same, then effect of Trade
dated accounting ,value dated accounting and TDGL will be same

If a Bank is accruing interest in an account daily, the accounting

entry passed by System for that will be a STMT.ENTRY

STMT.ENTRY is always passed online

Contingent balance in an Account is updated by STMT.ENTRY

Forward dated entries in STMT.ENTRY are produced only by

Contract applications

Cash flow will be automatically calculated for any period based on

forward dated entries
55
CATEG.ENTRY
Accounting Introduction > Accounting Entries

CATEG.ENTRY

Trade Dated Accounting

• Consolidated on the booking date to form non-contingent PL
key
• No contingent key situations only PL keys
Value Dated Accounting / TDGL
• There is no concept of “F” entries in CATEG.ENTRY
• Future valued CATEG.ENTRY records are generated
on transaction date
• Two additional contingent CATEG.ENTRY records
with SYSTEM.ID = CP generated
• CP with booking date, another CP with value date
for reversal of contingency and a PL (non-
contingent) with value date generated

56
CATEG.ENTRY - Enquiries
Accounting Introduction > Accounting Entries

CATEG.ENT.BOOK.STD
movements and
balances for period CATEG.ENT.FWD
future dated entries

57
Workshop - 8
Accounting Introduction > Accounting Entries

 Use User Menu > Retail Operations > LCY Drafts Issue/Account
Trfr > Transfer between Accounts
 Transfer USD 10,000 from PL Category for Staff salary to your
customer’s Special Savings Account. Let the debit be valued on the
last day of the month while credit is valued as 5th of next month

 Use Command Line ENQ TXN.ENTRY

 Look at the accounting entries

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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop -– Solution
12 Solution
Accounting Introduction > Accounting Entries

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12 Solution
Accounting Introduction > Accounting Entries

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12 Solution
Accounting Introduction > Accounting Entries

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12 Solution
Accounting Introduction > Accounting Entries

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Workshop - 9
Accounting Introduction > Accounting Entries

 Use User Menu > Finance > Journal Facility > LCY Transaction
Entries
 Transfer USD 5,000 from PL Category for Staff Salary to your
Customer Special Savings Account
 Let the debit be valued on the last day of the month while credit is
valued as on 5th of the next month

 Use COMMAND LINE ENQ TXN.ENTRY

 Look at the accounting entries

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Workshop -– Solution
13 Solution
Accounting Introduction > Accounting Entries

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Workshop -– Solution
13 Solution
Accounting Introduction > Accounting Entries

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 – 13 Solution
Workshop -Solution
Accounting Introduction > Accounting Entries

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Workshop - 10
Accounting Introduction > Accounting Entries

 Use Command Line to look at CATEG.ENT.ACTIVITY records stored in the

system for PL Category

 Use Command Line to look at CATEG.ENT.MONTH records stored in the

system for any PL Category

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Workshop – Solution
Accounting Introduction > Accounting Entries

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CATEG.ENTRY – a Sum up
Accounting Introduction > Accounting Entries

CP Key
CATEG.ENTRY consolidation
Value dated CP
In COB
Accounting /
TDGL CATEG.
FUNDS TRANSFER ENTRY
TELLER PL Key
DATA CAPTURE
SECURITIES CATEG.ENT.
Consolidation
TODAY In COB

PL Key
Trade dated Consolidation
CATEG. CATEG.ENT.
Entries affecting Accounting ENTRY TODAY In COB
PL Heads

MONEY MARKET PL Key

LOANS & DEPOSITS CATEG. CATEG.ENT.
Consolidation
ENTRY In COB
FOREX etc TODAY

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Quiz
Accounting Introduction > Accounting Entries

1.CATEG.ENTRY is so
named as it updates
Category code 3.In T24, there is no concept
consolidations ? of accounting entry for future
dated PL ?

4. If a Bank is accruing
interest in an account daily, 2. Contingent balance in PL
one side of the accounting possible in all applications?
entry passed by System for
5. CATEG.ENTRY
that will be a CATEG.ENTRY ?
is always passed
online ?

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Quiz
Accounting Introduction > Accounting Entries

7. Forward dated entries in

CATEG.ENTRY are produced 8. Cash flow will be
by Contract applications ? calculated based on Forward
dated CATEG.ENTRY ?

72
RE.CONSOL.SPEC.ENTRY
Accounting Introduction > Accounting Entries

All entries other than those affecting Profit & Loss

heads and non contingent balances of accounts

Accounting entries raised for Contracts -

Contingent as well as Non contingent

Contingent entries for Accounts in value dated

accounting and special entries in TDGL accounting

Accrual entries raised for Accounts and Contracts

Capitalisation entries for such Accruals

Entries raised for revaluation

Entries for movements

73
RE.CONSOL.SPEC.ENTRY – Movement Entries
Accounting Introduction > Accounting Entries

Updates movement of
Why
balances between
special
consolidation keys

Example: change in industry

of Customer resulting in
different consolidation of
loans given industry - wise

Customer A Corporate Loan Customer A

Industry : Shipping USD 1M Industry : Ship Breaking

RE.CONSOL.SPEC.ENTRY RE.CONSOL.SPEC.ENTRY RE.CONSOL.SPEC.ENTRY

- USD 1M + USD 1M - USD 1M

Corporate Loan in USD Corporate Loan in USD Corporate Loan in USD

to Shipping Industry to Shipping Industry to Ship Breaking Industry
- USD 1M NIL - USD 1M

74
RE.CONSOL.SPEC.ENTRY – Movement Entries
Accounting Introduction > Accounting Entries

Change in Overdue status

75
RE.CONSOL.SPEC.ENTRY
Accounting Introduction > Accounting Entries

• Hard coded in RE.TXN.CODE

• Reflect stages in life of contracts and other event
• Example: LNW, NEW, INC, DEC, ACC, LIQ, MAT,
Transaction SPT, REV, CUS, APP , SGN
Code

• Generated online by fresh contracts in all Contract

applications and Accounts
• AC (for Contingent entries in value dated accounting)
• FOREX generates SPEC direct during COB
Generation of • All these update EB.CONTRACT.BALANCES
Entry • Contains essential details of the transaction

76
Contracts Accounting
Accounting Introduction > Accounting Entries

Forward value-dated Own-book SC Future Own-book SC trade

contracts Except SC value dated Dated System
• On transaction date • On transaction date • only non-contingent
contingent spec records both contingent and RE.CONSOL.SPEC.
are generated non-contingent spec ENTRY generated
• On value date, these entry generated • No contingent situation
records are reversed by • On transaction date, • On transaction date,
new contingent spec contingent entries will they will be consolidated
records be consolidated for for reporting
• On value date, new non- reporting
contingent spec record • On value date,
is generated contingent balances will
• F entries in be reversed and
STMT.ENTRY file is replaced by non-
without underlying contingent balances
account number for
contract leg

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Workshop - 11
Accounting Introduction > Accounting Entries

 Use User Menu > Treasury Operations > Forex & Money Market
Trader > Front Office > Money Market Trader > MM
Placements/Loans > Input Fixed Maturity Contracts
 Input a loan for USD 22,000 with Fixed interest rate of 5%
 Value date of loan is 15 days from the deal date. Maturity date is 3
months from the value date
 Authorise the record

 Use User Menu>Treasury Operations>Forex & Money Market

Trader > Back Office > Accounting Enquiries > See Forward
Entries
 Look at the Forward entries generated

 Use Command Line to look at the TRANS.FWD table for the contract
and note down the Entry Ids.

 Use Command Line to look at the STMT.ENTRY table for looking at the
details of entries, the Entry Ids of which were noted by you earlier
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Workshop - Solution
Accounting Introduction > Accounting Entries

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Workshop -– Solution
14 Solution
Accounting Introduction > Accounting Entries

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Workshop -– Solution
14 Solution
Accounting Introduction > Accounting Entries

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Workshop -– Solution
14 Solution
Accounting Introduction > Accounting Entries

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Workshop - 12
Accounting Introduction > Accounting Entries

 Use User Menu > Treasury Operations > Forex & Money Market Trader
> Front Office > Money Market Trader > MM Placements/Loans
> Input Fixed Maturity Contracts
 Input a loan for USD 22,000
 Value date and deal date are same as System date. Maturity date is 3
months from the value date
 Use User Menu>Treasury Operations> Forex & Money Market Trader >
Back Office > Accounting Enquiries > View Transaction entries
 Look at the entries related to RE.CONSOL.SPEC.ENTRY &
STMT.ENTRY

 Use Command Line to look at the TRANS.FWD table for the contract
and note down the Entry Ids. Also Use Command Line to look at the
STMT.ENTRY table for looking at the details of entries, the Entry Ids of
which were noted by you earlier

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Accounting Introduction > Accounting Entries

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15 Solution
Accounting Introduction > Accounting Entries

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15 Solution
Accounting Introduction > Accounting Entries

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15 Solution
Accounting Introduction > Accounting Entries

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15 Solution
Accounting Introduction > Accounting Entries

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RE.CONSOL.SPEC.ENTRY – a Sum up
Accounting Introduction > Accounting Entries

AL Key
Consolidation
RE.CONSOL.
Entries affecting (Non Contingent)
SPEC.ENTRY
AL Heads
of all Applications

AL Key
RE.CONSOL. Consolidation
MD, LC etc SPEC.ENTRY (Contingent)

LD, MM, SW
STMT.ENTRY

AL Key
RE.CONSOL. Consolidation
TRANS.FWD
SPEC.ENTRY (Non Contingent)

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RE.CONSOL.SPEC.ENTRY – a Sum up
Accounting Introduction > Accounting Entries

Entries affecting AL Key

AL Heads for all contracts Consolidation
except Forex (Non
RE.CONSOL.
SPEC.ENTRY Contingent)
online

AL Key
Consolidation
FX RE.CONSOL.
SPEC.ENTRY
(Contingent)
COB

AL Key
RE.CONSOL. Consolidation
TRANS.FWD
SPEC.ENTRY (Non
Online
Contingent)

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RE.CONSOL.SPEC.ENTRY – a Sum up
Accounting Introduction > Accounting Entries

Trade dated
Accounting
AL Key
Consolidation
Entries affecting RE.CONSOL. (Non
Securities SPEC.ENTRY Contingent)
Own Book
Value dated
Accounting /
TDGL

AL Key
SECURITIES
Consolidation
RE.CONSOL.
SPEC.ENTRY (Contingent)

AL Key
CONSOL. RE.CONSOL.
Consolidation
ENT.FWD SPEC.ENTRY (Non
Contingent)

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Quiz
Accounting Introduction > Accounting Entries

1.RE.CONSOL.SPEC.ENTRY
is so named as it is 2.In T24, there is no concept
generated for speculation of accounting entry for future
dated AL transaction

3. If a Bank is accruing
5.Contingent balance in all
interest in an account daily, 4.RE.CONSOL.SPEC. applications produced only
one side of the accounting ENTRY is always by RE.CONSOL.SPEC.ENTRY
entry passed for that will be a passed during COB
RE.CONSOL.SPEC.ENTRY

92
EB.CONTRACT.BALANCES (ECB)
Accounting Introduction > Accounting Entries

Records the information held in the CRF down at contract level

• Allow the user to see the

online effect of a transaction
to the CRF

• Provide drill down information

from a reporting line

• Be used as the basis for the

CRB rebuild

• Be used as the basis for CRB

static changes.

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Agenda
Accounting Introduction

01 Learning Objectives
02 Overview on Accounting
03 Accounting Setup
04 Accounting Entries
05 Basic Parameters of Accounting

94
Accounting - Parameter Tables
Accounting Introduction > Basic Parameters of Accounting

CATEGORY

ACCOUNT.PARAMETER

ACCOUNT.CLASS

Accounts in local currency

for relevant
ACCOUNT.CLASS records
(Suspense accounts)

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Product Classification
Accounting Introduction > Basic Parameters of Accounting

Profit & Loss

ACCOUNTS CONTRACTS
heads
• Positive and • Balances can • T24 does not
Negative signs have only one use accounts for
(+ / -) for sign as per P & L heads
balances product decided • Uses Category
interchangeable at the beginning codes and
• Customer • Loans, consolidation
Accounts Deposits, keys
• Internal Foreign • Product related
Accounts Exchange deals, income and
• AA uses LCs etc expenditure
Accounts • Overheads
income and
expenditure.

96
Category Codes – Classify Products
Accounting Introduction > Basic Parameters of Accounting

Products are Accounts,

Contracts, Product related profits
and losses and
Non product related profits and
losses. They are set up in
CATEGORY-table First two digits
determine the
product
Five
Digit
The different type of products have Category
to be set up in certain ranges code
within CATEGORY-table. Which Next three digits
are used for
ranges can be used for which subclassification
products will be explained in the of the product
next slides

97
Category Codes - Accounts
Accounting Introduction > Basic Parameters of Accounting

Customer Accounts 01000 – 09999 Possible to accrue

Client Current accounts 1000 - 1999 interest
Vostro accounts 2000 - 2999
Other client account types 3000 - 3999
Nostro accounts 5000 - 5999
Client saving accounts 6000 - 6499
Client saving books 6500 - 6999
Specific provisions accounts 7000 - 7999
Client contingent accounts 9000 – 9999

Internal Accounts 10000 – 19999 Not possible to

Cash accounts 10000 – 10999 accrue interest
Suspense, Fixed Assets, Capital 11000 – 19999
etc

98
Category Codes - Contracts
Accounting Introduction > Basic Parameters of Accounting

Forex 20000 – 20999

LD and MM 21000 – 21999
Sub-blocks range 21001 – 21029 Deposits
21030 – 21039 Takings
21040 – 21044 Fiduciary deposits
21045 – 21049 Sundry deposits
21050 – 21074 Loans
21075 – 21084 Placements
21085 – 21089 Fiduciary placements
21090 – 21094 Accounts receivable
21095 – 21099 Commitments
Securities 22000 – 22999 22999 Securities Default

Other applications 23000 – 49999 As per allotted ranges

99
Category Codes – Profit and Loss
Accounting Introduction > Basic Parameters of Accounting

Product related 50000 – 59999

50000 – 50999 Interest paid
51000 – 51999 Interest received
52000 – 52999 Commission
53000 – 53999 Exchange profit
54000 – 59999 Others

Non product related 60000 - 69999

60000 – 60999 Salaries
61000 – 61999 Premises and Buildings
62000 – 62999 Operating expenses
63000 – 63999 Taxes
64000 – 64999 Others

100
Category Codes
Accounting Introduction > Basic Parameters of Accounting

For financial operations, category codes are

automatically assigned if parameterised

Help banks produce reports reflecting a

coordinated and structured view of their
operations

Records delivered with initial build can be

suitably modified, or new ones created within
the allocated range

101
Category Codes
Accounting Introduction > Basic Parameters of Accounting

18 = Product
888 = Subclassification

Application to be picked

Unique value for alternate

identification

102
Workshop –14 Category Codes
Accounting Introduction > Basic Parameters of Accounting

 Use Admin Menu > Framework Parameter >Core > Category

 Create suitable category codes for

Special savings account

Computer software purchased

Festival loan (Use LD range)

Interest on Fixed Deposits

Staff salary

103
Workshop - Solution
Accounting Introduction > Basic Parameters of Accounting

104
Workshop - Solution
Accounting Introduction > Basic Parameters of Accounting

105
Workshop – 15 Category Codes
Accounting Introduction > Basic Parameters of Accounting

 Use Admin Menu > Framework Parameter > Core > Category

 Search for live file and have a look at Customer account category
codes

 Search for live file and have a look at Internal account category codes

 Search for live files and have a look at the some contract application
category codes

 Search for live files and have a look at the following Profit and Loss
category codes

1. Product related
2. Non product related

106
Workshop - Solution
Accounting Introduction > Basic Parameters of Accounting

107
Workshop - Solution
Accounting Introduction > Basic Parameters of Accounting

108
Workshop - Solution
Accounting Introduction > Basic Parameters of Accounting

109
Asset Types in T24
Accounting Introduction > Basic Parameters of Accounting

 No GL heads in virtual accounting

 Principal, nominal, accrual, amortised balances are under Asset types
no payables and receivables
 Entries are posted between Category codes and Asset types
 Asset types are hardcoded except IFRS, AA
 Accrual, amortisation asset types takes the same value as PL category,
with no PL prefix
 Both contingent and Non contingent Asset types
 Balances are held under Asset types or Balance types and move from
one asset type to another in respective ECB records

110
ACCOUNT.CLASS
Accounting Introduction > Basic Parameters of Accounting

Automatic creation of Id is the hard coded Code words

Suspense Account to or User definable ‘U-Code’
debit/credit Suspense 3 types of records - Account,
entries raised in
various modules Class and P&L
Records used by wide range of
applications

Validations for specific Advised to check during

class of accounts implementation

Normally will not change unless

enhancements affect this
Generation of
CATEG.ENTRY records
by some modules Feature available in
T24 – Flexible to
choose the Category or
Sector.

111
ACCOUNT.CLASS – Account Type Records
Accounting Introduction > Basic Parameters of Accounting

Field Name Some Valid entries Purpose

ID BROKER Crediting brokerage if account not held

CUSDEBIT SP discounting in LC without debiting Customer
DIFFERENCE Data Capture application self balancing a batch
LCAMORT LC commission collected pending amortisation
SUSPENSE Data Capture application posting INAU records
SUSPLMMCR LD / MM automatic credit and debit pending settlement
SUSPLMMDR instructions from Customer
RESFWDCR
RESFWDDR Internal accounts used for revaluation of FX products
EXCHADJ under different methods of revaluation

CATEGORY 10000 – 19999 Only one Category code per record allowed
Mandatory Internal account in local currency to be opened for the
category code defined

SECTOR No Value

112
ACCOUNT.CLASS – Class Type Records
Accounting Introduction > Basic Parameters of Accounting

Field Name Some Valid entries Purpose

ID BANK To identify Counterparty as valid Bank (FT, AGENCY)

MGDEPOSIT To handle deposit accounts in MG
MORTGAGE To handle repayment accounts in MG
SAVINGS For issuing pass book instead of statements
NOSTRO To identify Nostro and Vostro accounts for various
VOSTRO purposes – Opening Accounts, NOSTRO.ACCOUNT,
Standard settlement instructions etc

CATEGORY Optional Associated multi value fields. Either field may be null,
but not both at the same time.

SECTOR Mandatory if Category and Sector can be defined together also.

CATEGORY not Duplications not allowed
defined

113
ACCOUNT.CLASS – P&L Type Records
Accounting Introduction > Basic Parameters of Accounting

Field Name Some Valid entries Purpose

ID DXCSNDUE Used by DX module for debiting and crediting a PL

DXCSNEARN head for commissions
DXCSNPAID
DXCSNRCVD

MKTEXCHCR Used by applications for debiting and crediting a PL

MKTEXCHDR head for marketing exchange profit and loss of the
Marketing Department
(Due to difference in exchange rate from Treasury
rate)
CATEGORY Above 50000 Only one Category code per record allowed
Mandatory

SECTOR No entry

114
Workshop – 16 - Account Class
Accounting Introduction > Basic Parameters of Accounting

 Use Command Line to list the ACCOUNT.CLASS records of your database

and have a look at the settings for the following record types:

 Account

 Class

 P&L

115
 Workshop- -Solution
Workshop Solution5
Accounting Introduction > Basic Parameters of Accounting

116
ACCOUNT.PARAMETER – an introduction
Accounting Introduction > Basic Parameters of Accounting

 Account Parameter is one of the

important parameter table set as part of
account and accounting.

 CASHFLOW For the cashflow the

number of days for the cashflow window
is stored in the field CASH.FLOW.DAYS

 Value Dated accounting and related

suspense account category codes are
set in this table

 Contingent Account Category range –

customer and internal accounts is
defined in this table

117
Key Learning Points
Accounting Introduction

In this course you have learnt

Overview on accounting & dependency on reporting

Core Dependencies in T24 Accounting

Impact of Dates used in T24 transactions

Overview of Accounting Setup in T24

Accounting Entries generated in T24

Basic Parameters in Accounting

118
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