This section contains details of the suggested accounting entries that can be set up, for the FX module of Oracle FLEXCUBE. The details of the suggested accounting entries are listed event-wise.
This chapter contains the following sections:
The following is an exhaustive list of events that can take place during the lifecycle of an MM contract. In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below.
| Event Code | Event Description | Remarks | |||
|---|---|---|---|---|---|
| BOOK | Booking | All Types | |||
| AMND | Amend | All forward contracts before settlement messages are generated. | |||
| CONF | Confirmation | All Types | |||
| CANC | Cancellation | All Types | |||
| LIQD | Liquidation | All Types | |||
| REAS | Reassign User | All Types | |||
| REVR | Reversal | All Types | |||
| ROLL | Rollover | All forward contracts. | |||
| REVL | Revaluation | Spot and forward contracts. | |||
| RRVL | Deal level revaluation reversal | Spot / Forward contracts with Rebate / NPV revaluation methods and Forward contracts with Straight Line revaluation method. | |||
| SGEN | Settlement Messages | All Types. | |||
| FIXG | NDF Forward Contract Fixing | This event is processed for a NDF Forward Contract when the NDF Fixing contract is booked against it. | |||
| UFIX | NDF Forward Contract Unfixing | This event is Processed for NDF Forward Contract To Reverse All Accounting Entries On Reversal Of NDF Fixing Contract. | |||
| LINK | FX Contract Linkage | Computes the value of linked amount/utilization | |||
| DLINK | FX Contract De-Linkage | Computes the value of linked amount/utilization | |||
| PLIQ | Partial Liquidation | Posts reverse contingent entries based on the PC/FT contract amount | |||
| DELE | Delete Linkage | Computes the value of linked amount/utilization | |||
| AFRM | Affirmation of a deal | When affirmation status is changed from unaffirmed to Affirmed manually, this event will be fired for the deal. | |||
| UAFR | Unaffirm a deal | When affirmation status is changed from affirmed to Unaffirmed manually, this event will be fired for the deal. | |||
| CNWV | Confirmation Waiver | The confirmation waiver status will be by default un waived for a deal. When the Confirmation waiver status is changed from Unwaived to Waived CNWV event will be fired. | |||
| UCNW | Unmarking of confirmation waiver | When the Confirmation waiver status is changed from Waived to Unwaived UCNW event will be fired. |
The amount tags listed below are hard-coded in Oracle FLEXCUBE.
| Amount Tag | Description | ||
|---|---|---|---|
| AMORTEXP | Premium/Discount Expense | ||
| AMORTINC | Premium/Discount Income | ||
| BOTAMT | Bought Amount | ||
| CONTLCYAMT | Contract LCY Equivalent Amount | ||
| REVLOSS | Revaluation Loss | ||
| REVLOSS_PY | Revaluation Loss (Previous Year) | ||
| REVPROFIT | Revaluation Profit | ||
| REVPROFIT_PY | Revaluation Profit (Previous Year) | ||
| ROLLBOTAMT | Rollover Bought Amount | ||
| ROLLSOLDAMT | Rollover Sold Amount | ||
| SETBOTAMT | Bought Settlement Amount | ||
| SETSOLDAMT | Sold Settlement Amount | ||
| SOLDAMT | Sold Amount | ||
| UNAMORTEXP | Prem/Disc Expense Amortization | ||
| UNAMORTEXP_PY | Unamortized Expense (Previous Year) | ||
| UNAMORTINC | Prem/Disc Income Amortization | ||
| UNAMORTINC_PY | Unamortized Income (Previous Year) | ||
| NDF_LOSS | NDF Loss | ||
| NDF_PROFIT | NDF Profit |
In addition to these you can define amount tags as per your requirements for the ICCF and tax components that will be attached to the product.
The following list contains the accounting roles that are applicable to the FX deals you can process at your bank.
| Accounting Role | Description | Role Type | |||
|---|---|---|---|---|---|
| CONTINGENT BOT | Contingent Bought Account | Contingent Asset | |||
| CONTINGENT SOLD | Contingent Sold Account | Contingent liability | |||
| EXCHANGE PROFIT | Exchange Profit | Income | |||
| EXCHANGE LOSS | Exchange Loss | Expense | |||
| UNRLZ FWD PNL | Unrealized Forward Profit And Loss | Asset | |||
| PRE_DIS INCOME | Premium Discount Income | Income | |||
| PRE_DIS EXPENSE | Premium Discount Expense | Expense | |||
| INC EXP AMORTZN | Income Expense Amortization | Asset /Liability | |||
| BROK_PAID | Brokerage Paid | Expense | |||
| BROK_PAYABLE | Brokerage Payable | Liability | |||
| FATAX1_EXP | Tax Expense Role Forfatax1 | Expense | |||
| FATAX1_PAD | Tax Paid In Adv Role Forfatax1 | Asset | |||
| FATAX1_PAY | Tax payable for FATAX1 | Liability | |||
| NDF_SET | NDF Settlement | Customer Role | |||
| NDF_INC | NDF Income | Income Role | |||
| NDF_EXP | NDF Expense | Expense Role |
Note
Accounting roles - PRE_DIS INCOME, PRE_DIS EXPENSE, and INCEXPAMORTZN are used only for Straight Line revaluation products.
In this section we will discuss the suggested accounting entries and advices that should be generated for each event in the life cycle of an FX deal.
Note
Some of the Amount Tag’s linked to the Accounting Roles are user defined.
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CONTINGENT BOT | BOTAMT | Debit | |||
| CONTINGENT SOLD | SOLDAMT | Credit | |||
| BROK_PAID | BROKAMT | Debit | |||
| BROK_PAYABLE | BROKAMT | Credit |
Advices
| Advice Name | Description | ||
|---|---|---|---|
| FX_DEALSLIP | Deal Slip | ||
| FX_DEALRMTLX | Dealing Room Confirmation Advice | ||
| FX_BROKERAGE | Brokerage Advice | ||
| FX_CONFIRMN | Confirmation Advice | ||
| NDF_CONF_ADVICE | NDF Confirmation Advice on BOOK event of NDF Forward Contract |
The following new tags are introduced for NDF Contracts for advice generation:
Advices
| MSG_TAG | Remarks | ||
|---|---|---|---|
| _NDFCUR_ | NDF Currency | ||
| _NDFBASIS_ | NDF Fixing Basis | ||
| _NDFSETCCY_ | NDF Settlement Currency | ||
| _NDFFIXINGDATE_ | NDF Fixing Date | ||
| _NDFACTFIX_DATE_ | Booking Date of NDF Fixing Contract | ||
| _NDFSETAMOUNT_ | NDF Settlement Amount | ||
| _NDFFIXINGSTATUS_ | NDF Fixing Status | ||
| _NDFSETAMTDR_ | Debit Indicator | ||
| _NDFSETAMTCR_ | Credit Indicator | ||
| _RECEIVER_ | Receiver information | ||
| _RECEIVER1_ | Receiver information 1 | ||
| _RECEIVER2_ | Receiver information 2 | ||
| _RECEIVER3_ | Receiver information 3 | ||
| _SENDNAME_ | Sender Name | ||
| _SENDER1_ | Sender Address 1 | ||
| _SENDER2_ | Sender Address 2 | ||
| _SENDER3_ | Sender Address 3 | ||
| _SYSDT_ | System Date | ||
| _PRODDESC_ | Product description | ||
| _CONTREFNO_ | Contract Reference number | ||
| _BOOKDT_ | Booking Date | ||
| _EVENTDT_ | Event Date | ||
| _BOTCCY_ | Bought Currency | ||
| _NDFSETAMTCR_ | Credit Indicator | ||
| _BOTAMT_ | Bought Amount | ||
| _BOTVALDT_ | Bought Value Date | ||
| _EXCHRATE_ | Exchange Rate | ||
| _SOLDCCY_ | Sold Currency | ||
| _SOLDAMT_ | Sold Amount | ||
| _SOLDVALDT_ | Sold Value Date | ||
| _SENDACINSTN1_ | Acct with Institution 1 | ||
| _SENDACINSTN2_ | Acct with Institution 2 | ||
| _SENDACINSTN3_ | Acct with Institution 3 | ||
| _SENDACINSTN4_ | Acct with Institution 4 |
Accounting Entries
Nil.
Advices
| Advice Name | Description | ||
|---|---|---|---|
| FX_BROKAMND | Brokerage Amendment Advice | ||
| FX_AMENDMENT | Amendment Advice |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CONTINGENT BOT | BOTAMT | Credit | |||
| CONTINGENT SOLD | SOLDAMT | Debit |
Advices
| Advice Name | Description | ||
|---|---|---|---|
| FX_CONFIRMN | Confirmation Advice |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CONTINGENT BOT | BOTAMT | Credit | |||
| CONTINGENT SOLD | SOLDAMT | Debit | |||
| BROK_PAID | BROKAMT | Debit | |||
| BROK_PAYABLE | BROKAMT | Credit | |||
| SETTLEMENT BOT | SETBOTAMT | Debit | |||
| SETTLEMENT SOLD | SETSOLDAMT | Credit | |||
| NDF_SET | NDF_PROFIT | Debit | |||
| NDF_INC | NDF_PROFIT | Credit | |||
| NDF_EXP | NDF_LOSS | Debit | |||
| NDF_SET | NDF_LOSS | Credit |
Advices
Nil.
Accounting Entries
No accounting entries allowed for this event. The system does an automatic reversal of all entries booked for the contract till date.
Advices
| Advice Name | Description | ||
|---|---|---|---|
| FX_REVERSAL | Transaction Reversal Advice | ||
| FX_BROKREVR | Brokerage Reversal Advice | ||
| REVSWIFT | Generation of MT292 on reversal of a contract |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CONTINGENT BOT | BOTAMT | Credit | |||
| CONTINGENT SOLD | SOLDAMT | Debit | |||
| CONTINGENT BOT | ROLLBOTAMT | Debit | |||
| CONTINGENT SOLD | ROLLSOLDAMT | Credit | |||
| SETTLEMENT BOT | SETBOTAMT | Debit | |||
| SETTLEMENT SOLD | SETSOLDAMT | Credit |
Advices
| Advice Name | Description | ||
|---|---|---|---|
| FX_ROLLOVER | Transaction Rollover Advice |
Accounting Entries for NPV/Rebate
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| UNRLZ FWD PNL | REVLOSS | Credit | |||
| EXCHANGE LOSS | REVLOSS | Debit | |||
| EXCHANGE PROFIT | REVPROFIT | Credit | |||
| UNRLZ FWD PNL | REVPROFIT | Debit |
Accounting Entries for Straight Line Revaluation
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| PRE_DIS EXPENSE | AMORTEXP | Debit | |||
| EXCHANGE LOSS | AMORTEXP | Credit | |||
| PRE_DIS INCOME | AMORTINC | Credit | |||
| EXCHANGE PROFIT | AMORTINC | Debit | |||
| EXCHANGE LOSS | REVLOSS | Debit | |||
| UNRLZ FWD PNL | REVLOSS | Credit | |||
| EXCHANGE LOSS | UNAMORTEXP | Credit | |||
| UNRLZ FWD PNL | UNAMORTEXP | Debit | |||
| EXCHANGE PROFIT | REVPROFIT | Credit | |||
| UNRLZ FWD PNL | REVPROFIT | Debit | |||
| EXCHANGE PROFIT | UNAMORTINC | Debit | |||
| UNRLZ FWD PNL | UNAMORTINC | Credit |
Advices
No Advices allowed for this event.
Accounting Entries
For Spot and Forward Contracts with NPV / Rebate method of Revaluation
| Accounting Role | Type | Amount Tag | Debit / Credit Indicator | ||||
|---|---|---|---|---|---|---|---|
| EXCHANGE PROFIT (Exchange Profit) | Income | REVPROFIT (Revaluation Profit) | Debit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | REVPROFIT (Revaluation Profit) | Credit | ||||
| EXCHANGE PROFIT (Exchange Profit) | Income | REVPROFIT_PY (Revaluation Profit – Previous Year) | Debit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | REVPROFIT_PY (Revaluation Profit – Previous Year) | Credit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | REVLOSS (Revaluation Loss) | Debit | ||||
| EXCHANGE LOSS (Exchange Loss) | Expense | REVLOSS (Revaluation Loss) | Credit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | REVLOSS_PY (Revaluation Loss – Previous Year) | Debit | ||||
| EXCHANGE LOSS (Exchange Loss) | Expense | REVLOSS_PY (Revaluation Loss – Previous Year) | Credit |
For Forward Contracts with Straight Line Revaluation
| Accounting Role | Type | Amount Tag | Debit / Credit Indicator | ||||
|---|---|---|---|---|---|---|---|
| EXCHANGE PROFIT (Exchange Profit) | Income | REVPROFIT (Revaluation Profit) | Debit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | REVPROFIT (Revaluation Profit) | Credit | ||||
| EXCHANGE PROFIT (Exchange Profit) | Income | REVPROFIT_PY (Revaluation Profit – Previous Year) | Debit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | REVPROFIT_PY (Revaluation Profit – Previous Year) | Credit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | REVLOSS (Revaluation Loss) | Debit | ||||
| EXCHANGE LOSS (Exchange Loss) | Expense | REVLOSS (Revaluation Loss) | Credit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | REVLOSS_PY (Revaluation Loss – Previous Year) | Debit | ||||
| EXCHANGE LOSS (Exchange Loss) | Expense | REVLOSS_PY (Revaluation Loss – Previous Year) | Credit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | UNAMORTINC (Unamortized Income) | Debit | ||||
| EXCHANGE PROFIT (Exchange Profit) | Income | UNAMORTINC (Unamortized Income) | Credit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | UNAMORTINC_PY (Unamortized Income – Previous Year) | Debit | ||||
| EXCHANGE PROFIT (Exchange Profit) | Income | UNAMORTINC_PY (Unamortized Income – Previous Year) | Credit | ||||
| EXCHANGE LOSS (Exchange Loss) | Expense | UNAMORTEXP (Unamortized Expense) | Debit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | UNAMORTEXP (Unamortized Expense) | Credit | ||||
| EXCHANGE LOSS (Exchange Loss) | Expense | UNAMORTEXP_PY (Unamortized Expense – Previous Year) | Debit | ||||
| UNRLZ FWD P&L (Unrealized Fwd P&L) | Asset / Liability | UNAMORTEXP_PY (Unamortized Expense – Previous Year) | Credit |
Accounting Entries
No accounting entries allowed for this event.
Advices
| Advice Name | Description | ||
|---|---|---|---|
| PAYMENT_MESSAGE | Payment Message |
Accounting Entries
Nil.
Advices
| Advice Name | Description | ||
|---|---|---|---|
| NDF_Fixing_Advice | On FIXG event of NDF Forward Contract |
Accounting Entries
Nil.
Advices
| Advice Name | Description | ||
|---|---|---|---|
| NDF_Reversal_Advice | On UFIX event of NDF Forward Contract |
Accounting Entries
| Accounting Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| CONTINGENT BOT | BOTAMT | Cr | |||
| CONTINGENT SOLD | SOLDAMT | Dr |