29.8 CD External Revaluation Changes

This topic describes the external revaluation changes for CD product and eternal MTM example.

For the portfolios marked for external revaluation below changes are applicable:

• MTM value uploaded through Webservice is applicable.
• OBTR will post the entries online received from webservice under events EXRV and EXRR.
• No revaluation entries under BRVL and RRVL are done at EOD for these portfolios.
• In case OBTR does not receive MTM for a day, the entries for that day are skipped, and the exceptions are logged to a table.

External MTM upload through webservice

External revaluation value are received in XML format for a CD Instrument ID (from DSDTRONL) and Portfolio ID (from DPDPFONL) combination.

• New operation SEExtMTM will be introduced.
• Effective date can be less than or equal to system date.
• MTM value passed can be positive or negative, a positive value would be considered as MTM Income while a negative value would indicate a MTM Loss.
• If the currency of posting is a FCY for the branch, it would be revalued to base currency using the rate at the time in CYDRATEE.
• Validating the below cases, an error is raised.

  Table 29-12 Validations

  Case	Validation Message
  If currency of the record doesn't match Security instrument currency or base currency of branch.	MTM currency should be same as Instrument currency or base currency
  If a combination of Security ID+ Portfolio ID for effective date is repeated.	Record already exists for Security ID+ Portfolio ID for this effective date
  Effective date greater than system date	Effective date cannot be greater than system date
  CDI Instrument ID is not defined in SEDCDONL or is marked as closed under security status	Security ID is not valid
  Portfolio ID is not defined in DPDPFONL	Portfolio ID is not valid
  MTM value passed as 0	MTM value cannot be zero
  If portfolio doesn't belong to branch	Invalid branch code for portfolio
  If security doesn't have position in the mentioned portfolio	Portfolio doesn't have position in the instrument

• On successful upload, external revaluation events are fired at portfolio level in online mode and the respective entries maintained at portfolio product is posted.

External MTM processing

External revaluation processing is as follows:

• If external revaluation flag is checked at portfolio level, revaluation will happen externally, for unchecked flag it will be done by OBTR internally.
• External MTM values would be uploaded for a combination of Security ID+Portfolio ID and would be done via XML upload.
• If Upload is successful, External Revaluation Event EXRV will trigger online and post accounting entries accordingly. All other entity related to accounting and revaluation will work as per existing functionality.
• Reversal under EXRR event would be done as part of next BOD with the same processing logic as RRVL.
• If the BOD processing date happens to be the first date of a financial year, revaluation reversal will happen from the previous year adjustment GL maintained at portfolio product level.
• When OBTR receives back dated External revaluation after year end, Profit and Loss adjustment entries should be posted manually as Journal entry. User should operationally handle the same

• External MTM Example