6.1.3 External Revaluation

This topis describes the external MTM upload through web service, GI, and external revaluation process.

Here the revaluation is done based on the external values which is provided as the input (revaluated profit or loss) to the system.

Once the External revaluation option is enabled at branch parameter, the EOD batches in the system does not calculate any profit or loss for the contracts, the accounting entries which is given to the system is posted and the revaluation event is triggered.

Note:

If the option external revaluation is enabled and if the MTM value is not received, the system skips the revaluation for the particular contract and the system logs exception into a table.

External MTM upload through Webservice

The External MTM value received is in XML format for a contract.

An Operation CreateExtMTMValue is used to upload DV External MTM Value for a contract through the gateway.

The following fields are mentioned in the XML:

Table 6-2 XML Fields

Field	Description
Source	Code Source Code of the upload
Upload Date	Date when XML is uploaded
Upload time	Time of the upload
Effective Date	Revaluation/Value Date used in accounting
Branch Code	Branch Code of the bank.
Contract Ref No	Reference Number of the contract for which MTM value upload is being done.
In Leg CCy	In Leg CCY
Out Leg CCY	Out Leg CCY
Base CCY	Base CCY
In Leg P&L	Calculated In Leg P&L (External System)
Out Leg P&L	Calculated Out Leg P&L (External System)
Net P&L	Calculated Net P&L (External System)

An error is raised when:

• The Contract reference number is not valid.
• Duplicate record exists for the contract reference number and revaluation date.
• Revaluation date is greater than the application date.
• Contract is not active.
• If Netting required flag is checked and Net P&L, Base CCY is not there in XML.
• If Netting required flag is unchecked and In Leg P&L, Out Leg P&L, In Leg and Out Leg CCY is not there in XML.

External MTM upload through GI

The Bulk Upload of external MTM value is supported though GI.

User can define properties, formats and components associated with interface file in the Interface Definition GIDIFTDF screen. For uploading rate fixed contracts from external system into OBTR select interface type as Incoming, interface code as DVDETMTM.

When an Incoming Interface Definition is saved, a dynamic package and external tables for each component is created in the Database. The generated dynamic package consists of fn_process_file and fn_upload for maintenance functions.

External tables per component is created on the file name mentioned in the Interface Maintenance, which is used for reading the corresponding component's data from the file.

The processing of the incoming interface takes place in:

• File process (FP): This process transfers data from file to upload tables.
• Data process (DP): This process transfers data from upload table to the base tables.

The following fields are mentioned in the incoming files:

Table 6-3 Fields in the Incoming file

Field	Description
Source Code	Source Code of the upload
Upload Date	Date when XML is uploaded
Upload time	Time of the upload
Effective Date	Revaluation/Value Date used in accounting
Market Date	MTM fair Value date
Branch Code	Branch Code of the bank.
Contract Ref No	Reference Number of the contract for which MTM value upload is being done.
In Leg CCY	In Leg CCY
Out Leg CCY	Out Leg CCY
Base CCY	Base CCY
In Leg P&L	Calculated In Leg P&L (External System)
Out Leg P&L	Calculated Out Leg P&L (External System)
Net P&L	Calculated Net P&L (External System)

• For the error validation refer to the error validation of the Web Services in the above section.
• The Job DV_MTMUPLOAD is defined and scheduled to pick the records from external system though GI for processing.
• User can trigger the process of Generic Interface using the Interface Trigger screen (GIDIFPRS).
• For more information on the GI process, refer to the Generic Interface User Manual.
• Move the incoming file to the DB server 'Read' folder manually or through file upload feature.
• Before starting the file upload, ensure that user has sufficient access permissions/grants to move and copy the files in the following folders inside file path specified while defining the interface.
• ready
• wip
• file_processed
• processed
• error
• On successful upload of external MTM Value, the external revaluation event is triggered and system will post accounting entries will trigger online.

External Revaluation Process

• External Revaluation is done based on DV Branch Parameter. If External Revaluation is at Branch Level, the branch revaluation is always executed externally.
• If External Revaluation is at Product Level, system checks the External Revaluation Required flag at Product. If the flag is checked, the revaluation happens externally and if the flag is Unchecked revaluation happens internally on EOD batch processing.
• If the MTM value is uploaded for only one contract, the data is received using Webservice, and on successful acknowledgment, the external revaluation (EXRV) event is triggered online to perform the revaluation entries online.
• In case of the bulk upload, the data is received though Generic Interface, and on successful acknowledgment the external revaluation (EXRV) event is triggered online to perform the revaluation entries online.
• All other entity related to accounting and revaluation works as per existing functionality.
• If the Revaluation Reversal is along with Revaluation at branch parameter level, the reversals of entries for a particular revaluation is performed at the time of the next revaluation with EXRR Event.
• If the Revaluation Reversal is Next Day in BOD at branch parameter level, any revaluation gain or loss is reversed the very next day during the BOD process with EXRR Event.
• If the BOD processing date is the first day of the financial year, revaluation reversal is done from the previous Year adjustment GL maintained on upload External Revaluation table is populated with respective values.
• If External revaluation parameter is enabled, and is the revaluation level is branch, the DV batch does not execute the internal revaluation.
• In case OBTR does not receive any MTM value for any particular day, the system skips the revaluation for the particular contract on that day.

  Note:

  The System supports the back dated External revaluation.

• When OBTR receives back dated External revaluation after year- end, Profit and Loss adjustment entries are posted manually as Journal entry. User operationally handle the same.

Example for External Revaluation:

Consider the contract is booked on 15th July with external revaluation required.

Scenario 1:

On 17th receiving P&L amount as 150 GBP for 16th July.

Table 6-4 Event EXRV (External Contract Revaluation)

Accounting Role	Amount Tag	Dr/Cr	Amount	CCY	Transaction Date	Value Date
CONT_FAIR_VAL	CUR_NETRVL_INC	Dr	150	GBP	17-Jul-20	16-Jul-20
NET_RVL_INC	CUR_NETRVL_INC	Cr	150	GBP	17-Jul-20	16-Jul-20

On 18th receiving P&L amount as 75 GBP for 17th July

1st Revaluation reversal is triggered.

Table 6-5 Event EXRR (External Contract Revaluation reversal)

Accounting Role	Amount Tag	Dr/Cr	Amount	CCY	Transaction Date	Value Date
NET_RVL_INC	PRV_NETRVL_INC	Dr	150	GBP	18-Jul-20	18-Jul-20
CONT_FAIR_VAL	PRV_NETRVL_INC	Cr	150	GBP	18-Jul-20	18-Jul-20

Table 6-6 Event EXRV (External Contract Revaluation)

Accounting Role	Amount Tag	Dr/Cr	Amount	CCY	Transaction Date	Value Date
CONT_FAIR_VAL	CUR_NETRVL_INC	Dr	150	GBP	18-Jul-20	17-Jul-20
NET_RVL_INC	CUR_NETRVL_INC	Cr	150	GBP	18-Jul-20	17-Jul-20

Scenario 2 - Next Day in BOD:

On 17th receiving P&L amount as 150 GBP for 16th July.

Table 6-7 Event EXRV (External Contract Revaluation)

Accounting Role	Amount Tag	Dr/Cr	Amount	CCY	Transaction Date	Value Date
CONT_FAIR_VAL	CUR_NETRVL_INC	Dr	150	GBP	17-Jul-20	16-Jul-20
NET_RVL_INC	CUR_NETRVL_INC	Cr	150	GBP	17-Jul-20	16-Jul-20

On 18th BOD during batch revaluation reversal is triggered.

Table 6-8 Event EXRR (External Contract Revaluation reversal)

Accounting Role	Amount Tag	Dr/Cr	Amount	CCY	Transaction Date	Value Date
NET_RVL_INC	PRV_NETRVL_INC	Dr	150	GBP	18-Jul-20	18-Jul-20
CONT_FAIR_VAL	PRV_NETRVL_INC	Cr	150	GBP	18-Jul-20	18-Jul-20

On 18th receiving P&L amount as 75 GBP for 17th July.

Table 6-9 Event EXRV (External Contract Revaluation)

Accounting Role	Amount Tag	Dr/Cr	Amount	CCY	Transaction Date	Value Date
CONT_FAIR_VAL	CUR_NETRVL_INC	Dr	150	GBP	18-Jul-20	17-Jul-20
NET_RVL_INC	CUR_NETRVL_INC	Cr	150	GBP	18-Jul-20	17-Jul-20

On 19th BOD during batch revaluation reversal is triggered.

Table 6-10 Event EXRR (External Contract Revaluation reversal)

Accounting Role	Amount Tag	Dr/Cr	Amount	CCY	Transaction Date	Value Date
NET_RVL_INC	PRV_NETRVL_INC	Dr	150	GBP	19-Jul-20	19-Jul-20
CONT_FAIR_VAL	PRV_NETRVL_INC	Cr	150	GBP	19-Jul-20	19-Jul-20

On 19th OBTR does not receive revaluation from external system, then the revaluation event is not triggered and revaluation is skipped.