14.7.1.2 Process Details
The Restatement Process works similar to the Daily Movement and Period Balance Computation on the basis of the Legal Entity, As of Date, Data Origin and GL Type. The process runs for each posting date which lies between the earliest posting date for all journals of the specific GL Type. The process re-computes the Daily Movement and (or) the Period Balances for each journal entry identified as backdated for each date lying in the above specified range. The difference in treatment between GL Types is as follows:
- Balance Sheet GL Types
The balances are added on the basis of Credit or Debit Vector of the journal entries and the process impacts the Daily Movements and Period Balances for all the dates lying within the above specified range.
- Profit and Loss GL Types
The balances are summed up on the basis of the Credit or Debit Vector of the journal entries and the process impacts the Daily Movements for the specific dates for which backdated journals are identified. The process re-computes the period balances for all dates which lie within the above specified range.
The preceding process adds a new version of the existing record with the re-computed balances. This record also shows a difference in terms of the As of Date versus Posting Date (Effective Date) in the processing entities.
For an institution that does daily processing of the instrument-level balance, for illustration, a current- dated journal entry extracted and provided to OFSAA 15-August-2020 to be processed as of the same date, bears the following date values in the Example of Column Values, as supplied into the Accounting Entries Entity.
Table 14-6 Details of the Date Fields in the Stage Accounting Entries Table
| Logical Column Name | Column Description | Example of Column Values |
|---|---|---|
| Extraction Date | This column stores the date as on which the snapshot of source data extracted for processing. | 15-Aug-20 |
| Transaction Date | This is the date of the transaction, which will always be the system date along with timestamp | As assigned by Systems of Record (Data Origin) |
| Value Date | This column stores the value date of the contract. Value date is the date on which the contract becomes effective. | As assigned by Accounting System |
| Transaction Posting Date | The date on which this transaction was posted against the associated account for monetary instruments and checks. | 15-Aug-20 |
| Processing Date | This is the process date of the transaction, which will be populated with current date of Branch Code. | 15-Aug-20 |
| Transaction Reversal Date | This column stores date of the transaction which is a reversal entry that made to cancel out a specific entry. These reversal entries are the entries that can be passed as a result of a cancelled transaction. | NULL |
Balance Computation Management Ledger Process identifies prior-dated journal entries from the comparative combination of As of Date and Posting Date. When Posting Date is prior to As of Date, Balance Computation Management Ledger Pipeline Processes Balance Sheet and Income Statement Ledger Account-types as follows:
- The Restatement Process works similar to the Daily Movement and Period
Balance Computation Processes, by Legal Entity, As of Date, Data Origin and GL Type.
Restatement is performed for each Posting Date between the earliest one for any
journal entry of a specific GL Type and the present As of Date. The process
re-computes the Daily Movement and (or) the Period Balances based on journal entries
thus identified as back-dated for each As of Date in the aforementioned date-range.
The treatment of Balance Sheet and P&L:
- Balance Sheet Ledger Accounts: The balances are summed up on the basis of Credit/Debit Vector of the journal entries and the process impacts the daily movements as well as period balances for all the dates lying within the above specified horizon.
- Profit & Loss Ledger Accounts: The balances are summed up on the basis of the Credit/Debit Vector of the journal entries and the process impacts the daily movements for the specific dates for which backdated journals are identified. The process re-computes the period balances for all dates which lie within the above specified horizon.