End of Year Procedure

R12 and above

Temenos PACS

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 End of Year Procedure_R12 and above

Table of Contents
Introduction ..................................................................................................................................................................... 4
PL.CLOSE.PARAMETER ................................................................................................................................................ 4
Reports ......................................................................................................................................................................... 5
Year End ....................................................................................................................................................................... 5
Exclude Types ............................................................................................................................................................. 5
Field TYPES.TO.EXCLUDE: .................................................................................................................................... 5
Grouping....................................................................................................................................................................... 6
Halt Process ................................................................................................................................................................. 6
PL Close Out Account .................................................................................................................................................... 7
Profit and Loss close out ............................................................................................................................................... 8
PL.MOVE.TO.AL .............................................................................................................................................................. 8
AC.HVT.MERGE ..................................................................................................................................................... 10
PL.CLOSE.PRE.PROCESS .................................................................................................................................... 10
PL.CLOSE.OUT ...................................................................................................................................................... 10
PL.MOVE.TO.AL ..................................................................................................................................................... 10
RE.BUILD.SLC.WORK ........................................................................................................................................... 10
EOD.UPDATE.CATEG.ENT.MONTH ..................................................................................................................... 10
EOD.CRF.PL.UPDATE & EOD.CRF.AL.UPDATE ................................................................................................. 10
RE.CLEAR.RECALC.ENTRY ................................................................................................................................. 10
RE.UPDT.STAT.LINE.CONT .................................................................................................................................. 10
RE.UPDATE.LINE.BAL.MVMT ............................................................................................................................... 10
RE.BUILD.LINE.MVMT ........................................................................................................................................... 10
B.BUILD.JOURNAL.SUMMARY ............................................................................................................................ 11
RE.BUILD.SYS.SUMMARY .................................................................................................................................... 11
PL.CLOSE.STAT.PRINT ......................................................................................................................................... 11
EB.EOD.REPORT.PRINT ....................................................................................................................................... 11
PL.CLOSE.OUT.HALT ................................................................................................................................................... 11
PL.CLOSE.OUT.FINISH ................................................................................................................................................. 12
Start of the year jobs .................................................................................................................................................... 12
SA.START.OF.DAY ........................................................................................................................................................ 12
Other end of the year jobs ............................................................................................................................................ 13
Job to be run during a quiet period in the New Year: ........................................................................................ 13
PC.PERIOD..................................................................................................................................................................... 14
Updates .......................................................................................................................................................................... 14
Conclusion ..................................................................................................................................................................... 14

Document History

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 End of Year Procedure_R12 and above

Author Version Date

Poorni V1.0 Dec 10 2011

Sandhya V2.0 Dec 08 2012

Divyalakshmi V3.0 Dec 07 2013

Julian Titus V4.0 Oct 21 2014

Amrita V5.0 Nov 06 2015

Yogesh V6.0 Nov 11 2015

Gomathi V7.0 Oct 17 2016

Gomathi V8.0 Sep 21 2017

Comments:

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 End of Year Procedure_R12 and above

Introduction

This document outlines the specific, once in a year, activities relating to the financial year-end. These End of Year
procedures relate mainly to close out the Profit and Loss accounts and a few other accounting updates.
The Profit and Loss close out process is where PL of previous year is moved to Asset & Liability during the first
working day of new financial year. This is done as the first JOB of the Batch Processing to move all the PL entries till
the previous working day to the PL CLOSE account.
Here the virtual date is introduced between the last day of the current financial year and the first working day of the
next financial year, so that the opening figures for the new financial year can be cleared. The virtual date is formed
with a suffix CL added to the last date of the financial year. Ex: 20171231CL. Reports and journal pertaining to year-
end is formed with this virtual date. This document outlines the settings and the process involved in the
END.OF.YEAR process.

Caution: Please test the procedure in test environment and on confirming implement the same in live.

PL.CLOSE.PARAMETER
The parameter file PL.CLOSE.PARAMETER, with a record for each lead company is used to set the financial year for
a company and few other settings related to END.OF.YEAR process can also be done as follows.

Figure 1: PL.CLOSE.PARAMETER

The PL.CLOSE.PARAMETER has 5 settings.

 Reports

 Year End

 Excluded Types

 Grouping

 Halt Process

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Reports
The reports section has three related fields, REPORT.TYPE, REPORT & REPORT.DATA which control the reports
that are produced during the PL close out process. The reports can be ENQUIRY, REPGEN.CREATE or program
driven. In REPORT.TYPE the user can specify the type of the report required (CRF, RTN, RPG or ENQ). REPORT
contains the key to REPGEN.CREATE, ENQUIRY.REPORT, RE.STAT.REQUEST or a valid compiled program name.
Lastly, the REPORT.DATA field allows the program driven routines to be passed as a parameter

Year End
The financial period end, usually be yearly but it can be defined as Monthly, Quarterly, Semi-Annual or Annual. This is
set in CLOSE.FREQ.DATE as a month end date and the frequency to cycle.

Exclude Types
Please be noted that because of introducing the new functionality called "Multi GAAP (Multiple Position types)" in R10
and above release the below changes are made at the application PL.CLOSE.PARAMETER setup to run End of year

Field TYPES.TO.EXCLUDE:

By default, all the contingent types will be by-passed by the system automatically during the End Of Year process. On
top of it, any non-contingent types can also be skipped for closing out; those had to be mentioned in the field
TYPES.TO.EXCLUDE. The below explanation will give a better understanding to set up PL.CLOSE.PARAMETER.
Refer the application RE.PL.PREFIXES to view contingent and non-contingent PL types.

Figure 2: FX.POS.TYPE PL Prefixes

Position Type Non-Contingent Types Contingent – Types Contingent Self Balancing Types

IA
IA IP IB
IF
PLIF CPIF CBIF
TR
PL CP CB

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If multiple position types are in use, during the EOY process, by default the contingent types (IP, CPIF, CPTR, IB,
CBIF and CBTR) will be by-passed automatically.
Suppose, if non-contingent type 'PLIF' needs to be excluded for closing out process, then the
PL.CLOSE.PARAMETER needs to be setup like below,

Figure 3: PL Close Out Parameter

Note: Ensure that at least one internal account should persist in the system for the respective company (lead as well
as branch) pertaining to the closing category, which is defined in the PL.CLOSE.PARAMETER.

Grouping
PL entries produced will be based on CATEGORY/CURRENCY and one entry will be passed to internal account.
Each of these entries will be the sum of all the CONSOLIDATE.PRFT.LOSS records matching the combination of
CATEGORY & CURRENCY.
To produce entries summed at different group levels the additional elements can be added from the PROFIT&LOSS
key. So that, for example the entries are summed for all records matching the same
PLCATEGORY/CURRENCY/PLSECTOR or whatever local settings defined.

Halt Process
This is a flag, which allows the cob process to be halted just after the close out process. This allows the users to
access reports or files to extract key financial data they require pertaining to year-end. If left unchecked the process
will run without halting.
Set field PL.CLOSE.HLT.PRCSS as required.

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PL Close Out Account

It is mandatory to have individual internal accounts for the PL Close Out category and for each POSITION TYPE (TR,
IF, IA) defined in the PL.CLOSE.PARAMETER for all LEAD and BRANCH companies. If internal accounts does not
exists, then the system gets fatal out. Ensure the internal accounts created before proceeding the year-end COB.
Sample Account in Multi-company environment for TR position type, with the category 18045.

Figure 4:PL Close out Account

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Profit and Loss close out

PL.MOVE.TO.AL

Unlike in earlier releases the jobs in PL.MOVE.TO.AL runs on Daily basis but the actual process is done only on the
first day of the new financial year.
Below given screen shot depicts the initial part of the batch record “PL.MOVE.TO.AL” with relevant jobs, which does
the main closing out process.

Figure 5:PL.Move.To.AL

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The below jobs under the batch will do the consolidation of the relevant files

Figure 6: Batch Jobs to consolidate relevant files

The rest of the jobs under the batch record which does the reporting are portrayed below.

Figure 7: Batch jobs for reporting

Screenshot given above is for BNK Company, which is a lead company. Ensure to have/create the BATCH
records for corresponding lead companies in the system.

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AC.HVT.MERGE
This job triggers if the PL close out internal account is marked as a HVT account, it will merge the balances and
update accordingly during the process.

PL.CLOSE.PRE.PROCESS
This job runs before the PL.CLOSE.OUT process. It will check every day one week before the year-end for the
existence of the record in PL.CLOSE.PARAMETER and ACCOUNT.CLASS, otherwise posts an EB.EOD.ERROR. On
the day of PL.CLOSE.OUT run, the system will fatal out if it is not found.

PL.CLOSE.OUT
Generates CATEG.ENTRY for each currency to offset the PL balance and according to the AL.GROUPING defined in
PL.CLOSE.PARAMETER. For each combination of the grouping, the CPL balance accumulates and is written into the
work file PL.CLOSE.OUT.WORK

PL.MOVE.TO.AL
Reads the work file PL.CLOSE.OUT.WORK and posts STMT.ENTRY for the net amount to be booked in the internal
account (PL CLOSE Internal Account). Thus the PL of previous year is moved to Asset & Liability.

RE.BUILD.SLC.WORK
P&L keys from RE.STAT.LINE.CONT will be removed. Last year CPL keys with zero balances are deleted later in the
batch EOD.UPDATE.PL.YTD.

EOD.UPDATE.CATEG.ENT.MONTH
Updates the CATEG.ENT.MONTH for the categ entries posted in the above process.

EOD.CRF.PL.UPDATE & EOD.CRF.AL.UPDATE

Updates CAL and CPL of the last year with the processing date as in PL.CLOSE.PARAMETER, deletes
CONSOL.UPDATE.WORK and PL.CONSOL.UPDATE.WORK.

RE.CLEAR.RECALC.ENTRY
Clears all line movement CAL keys and its link in RE.STAT.LINE.CONT.

RE.UPDT.STAT.LINE.CONT
Rebuilds RE.STAT.LINE.CONT for the existing CAL and CPL records to facilitate the report generation pertaining to
year-end.

RE.UPDATE.LINE.BAL.MVMT
Creates RE.STAT.LINE.BAL records for the virtual date as PERIOD.END date.

Ex: MBGL-0330-LOCAL-20171231CL

RE.BUILD.LINE.MVMT
Updates the RE.STAT.LINE.BAL for the current day and posts RCA entries if any mismatch between the virtual date
record and today’s record.

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B.BUILD.JOURNAL.SUMMARY
Builds the EB.JOURNAL.SUMMARY for the PL.CLOSE.OUT process with the processing date from the
PL.CLOSE.PARAMETER.

RE.BUILD.SYS.SUMMARY
Updates a special EB.SYSTEM.SUMMARY record for PL.CLOSE.OUT process.

PL.CLOSE.STAT.PRINT
The reports to be generated as part of the PL.CLOSE.OUT process are attached in the PL.CLOSE.PARAMETER and
this job takes care of generating them.

EB.EOD.REPORT.PRINT
The reports generated in the above job are printed by this job.

**All updates done and reports generated by the jobs in PL.MOVE.TO.AL will have the processing date from
PL.CLOSE.PARAMETER. i.e., 20171231CL

PL.CLOSE.OUT.HALT
The field CLOSE.HLT.PRCSS in PL.CLOSE.PARAMETER is set to ‘Y’ in order to initiate the batch halt. As said
earlier, during this halt the users can access reports or files to extract key financial data they require pertaining to
year-end.
In a multi-company environment, the halt happens only once after the PL.CLOSE.OUT process completed for all
companies.

Figure 8:PL.Close.Out.Halt

Screenshot given above is for BNK Company, which is a lead company. Ensure to have/create the BATCH
records for corresponding lead companies in the system.

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PL.CLOSE.OUT.FINISH
Cycles the CLOSE.RUN.FREQ in the PL.CLOSE.PARAMETER also cycles FINANCIAL.YEAR.END and
LAST.FINANCIAL.YEAR.END in the company record.

Figure 9:PL.Close.Out.Finish

Screenshot given above is for BNK Company, which is a lead company. Ensure to have/create the BATCH
records for corresponding lead companies in the system

Start of the year jobs

SA.START.OF.DAY

(Job/ Program name: SA.START.OF.YEAR.BAL)

This job should only be run if savings accounts exist. This is an end of day job, runs at the START of the year, to
move the open cleared balance to the start of year balance field in the account records, runs as the first 'financial' job
during start of day.
Example:
Last working Day of 2017: 29-12-2017
First working Day of 2018: 02-01-2018

Figure 10:SA.Start.Of.Year.Bal

Screenshot given above is for BNK Company, which is a lead company. Ensure to have/create the BATCH
records for corresponding lead companies in the system

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SA.START.OF.DAY job does the following process:

 The job SA.START.OF.YEAR.BAL is a start of day job. This means that it needs to be executed by the time
the bank starts to work on the first working day of the new financial year. This in turn means that this should
be triggered on the last T24 working day of the previous financial year.
 This job should only be run if savings accounts exists.
 The Saving account year can be different to the financial year-end, i.e., say, financial year-end is 31 Dec
2017, whereas the savings account year end can be 28 Feb 2018. This needs to be taken into account when
running the savings account job.

Other end of the year jobs

Job to be run during a quiet period in the New Year:

The following job also needs to be run, but during a quiet period of the New Year.

Batch Record ID : ONLINE

Job Name : IC.UPDATE.INACTIVE & IC.UPDATE.INACTIVE.POST

Run Date : Any quiet period in the New Year.

Program Name : UPDATE.INACTIVE.MARKER

This subroutine will be executed as part of the end of day procedure and is an optional process; i.e., it will not be run
every night. Its function is to identify those accounts on the ACCOUNT file, which have been inactive for a period of
time. i.e., no movement for a user defined number of months. A select list will be used to obtain the appropriate
accounts.

Example: Quiet working day of 2018 say 11 JAN 2018

Figure 11:IC.Update.Inactive

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PC.PERIOD
If the POST.CLOSING module is installed and if the POST.CLOSING module is in use, create PC.PERIOD record
for the date present in the PERIOD.END.DATE field of the DATES record on the last working day. This has to be
created for all the companies

Note: Please refer to the PERIOD.END.DATE field in DATES record during the last working day of 2017.

Figure 12: PC Period

Updates
The following critical updates related to PL Close Out are recommended to be installed

Release Component Version Priority Fix Nature

GL difference only for the close out day when there is
R12 RE_YearEnd 6 Strongly Advised actually no difference

R12 4 POST CLOSING related fixes

PC_Contract Strongly advised
GL difference only for the close out day when there is
R13 RE_YearEnd 2 Strongly Advised actually no difference

R13 5 POST CLOSING related fixes

PC_Contract Strongly advised
GL difference only for the close out day when there is
R14 RE_YearEnd 1 Strongly Advised actually no difference

R14 3 POST CLOSING related fixes

PC_Contract Strongly advised
GL difference only for the close out day when there is
R15 RE_YearEnd 1 Strongly Advised actually no difference
Views are created at the database level while PC files
R15 PC_Contract 1 Strongly advised created in TAFJ environment
GL difference only for the close out day when there is
R16 RE_YearEnd 1 Strongly Advised actually no difference
Validation added to re-initialise account ID after statement
Strongly advised entry processing of every PC.PERIOD.END date such that
R16 PC_Contract 2
no Fatal Error is thrown

*Please make sure to have the strongly advised updates version or above in the respective release.

*PC updates can be installed, if PC module is being used

Conclusion
Special care needs to be taken with regard to these End of Year jobs. In case you require any further clarifications,
please do not hesitate to contact us.

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