End of Year Procedure

R20 and Above

Temenos PACS

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 End of Year Procedure – R20 and Above

Table of Contents
Table of Contents ....................................................................................................................................................................................2
Document History...................................................................................................................................................................................4
Introduction ..............................................................................................................................................................................................5
PL.CLOSE.PARAMETER ..........................................................................................................................................................................5
Reports .................................................................................................................................................................................................. 5
Year End ................................................................................................................................................................................................ 6
Exclude Types ...................................................................................................................................................................................... 6
Field TYPES.TO.EXCLUDE:........................................................................................................................................................... 6
Grouping ............................................................................................................................................................................................... 7
Halt Process ......................................................................................................................................................................................... 7
PL Close Out Account ............................................................................................................................................................................8
Profit and Loss close out .......................................................................................................................................................................9
PL.MOVE.TO.AL .......................................................................................................................................................................................9
AC.HVT.MERGE ............................................................................................................................................................................ 12
PL.CLOSE.PRE.PROCESS ........................................................................................................................................................... 12
PL.CLOSE.OUT ............................................................................................................................................................................. 12
PL.MOVE.TO.AL ........................................................................................................................................................................... 13
RE.BUILD.SLC.WORK .................................................................................................................................................................. 13
EOD.UPDATE.CATEG.ENT.MONTH ......................................................................................................................................... 13
PL.CLOSE.DATES.UPDATE ........................................................................................................................................................ 13
EOD.CRF.PL.UPDATE & EOD.CRF.AL.UPDATE..................................................................................................................... 13
EOD.MERGE.XREF.ENT.KEY ...................................................................................................................................................... 13
RE.RECALC.REP.WORK: ............................................................................................................................................................. 13
RE.CLEAR.RECALC.ENTRY ......................................................................................................................................................... 13
RE.UPDT.STAT.LINE.CONT ........................................................................................................................................................ 13
RE.UPDATE.LINE.BAL.MVMT .................................................................................................................................................... 13
RE.BUILD.LINE.MVMT ................................................................................................................................................................ 13
B.BUILD.JOURNAL.SUMMARY ................................................................................................................................................. 13
RE.BUILD.SYS.SUMMARY .......................................................................................................................................................... 14
PL.CLOSE.STAT.PRINT................................................................................................................................................................ 14
EB.EOD.REPORT.PRINT .............................................................................................................................................................. 14
PL.CLOSE.HALT.PROCESS ........................................................................................................................................................ 14
RE.CYCLE.PL.CLOSE.PARAMETER ........................................................................................................................................... 14
Start of the year jobs ........................................................................................................................................................................... 14
SA.START.OF.DAY................................................................................................................................................................................. 14
Other end of the year jobs ................................................................................................................................................................ 15
Job to be run during a quiet period in the New Year: .......................................................................... 15

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 End of Year Procedure – R20 and Above

PC.PERIOD ............................................................................................................................................................................................. 16
Updates ................................................................................................................................................................................................... 16
Conclusion ............................................................................................................................................................................................. 17

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End of Year Procedure – R20 and Above

Document History

Author Version Date

Elizebath Thomas V1.0 Oct 13 2020

Elizebath Thomas V2.0 Oct 02 2021

Nikhita Panda V3.0 Sep 22 2022

Yeswanth Raja V4.0 Oct 03 2023

Comments:

EOY Procedure for R20 and Above

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End of Year Procedure – R20 and Above

Introduction
This document outlines the specific, once in a year, activities relating to the financial year-end. This End of Year
procedure relates 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 balances are moved to Asset & Liability
during the first working day of new financial year. This is done as the first JOB of the Batch Processing
so as to move all the PL entries till the previous working day to the PL CLOSE account.
The virtual date is introduced between the last day of the current financial year and the first working day of the
next financial year from R09, 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: 20231231CL. 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

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.

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End of Year Procedure – R20 and Above

Note: When the REPORT.TYPE field value set as CRF, attach the respective RE.STAT.REQUEST id (which is using for
producing daily CRF report) in REPORT field of PL.CLOSE.PARAMETER record.

Year End
The financial period end, usually 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

Non-Contingent Contingent – Contingent Self

Position Type
Types Types Balancing Types

IA IA IP IB

IF PLIF CPIF CBIF

TR PL CP CB

LK PLLK CBLK CPLK

SG SGPL SGCP SGCB

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.

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End of Year Procedure – R20 and Above

For example, If the bank requires to exclude the non-contingent type 'PLIF' for the 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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End of Year Procedure – R20 and Above

PL Close Out Account

It is mandatory to have individual internal local currency account 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
account does not exists, then the system gets fatal out. Ensure the internal account 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 for TR position type

Note: Ensure the PL Close out account exists for each position type defined in PL.CLOSE.PARAMETER

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End of Year Procedure – R20 and Above

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 of closing out will
be 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

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

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End of Year Procedure – R20 and Above

Figure 6 - Batch Jobs to consolidate relevant files

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

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Figure 7 - Batch jobs for reporting

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End of Year Procedure – R20 and Above

Figure 8 - Batch jobs for Halting and Cycling Frequency

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.

AC.HVT.MERGE
This job will be triggered 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 the parameter record not found.

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

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End of Year Procedure – R20 and Above

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.

PL.CLOSE.DATES.UPDATE
This job maintains the historical details of the financial year end in the system. In case, if there occurs two financial
year end in a single year, through this job system updates the Financial Year End dates of the corresponding year
and it will be carried out further.

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

EOD.MERGE.XREF.ENT.KEY
This job will be triggered if the PL close-out internal account is marked as an HVT account, it will merge/update
the records in RE.CONSOL.STMT.ENT.KEY & RE.CONSOL.SPEC.ENT.KEY based on the RE.STMT.ENT.KEY.WORK &
RE.SPEC.ENT.KEY.WORK records.

RE.RECALC.REP.WORK:
Recalculates RE.STAT.LINE.AL.WORK & RE.STAT.LINE.PL.WORK records if any changes on the report line definitions
and it helps to facilitate the report generation

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-20231231CL

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

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

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End of Year Procedure – R20 and Above

RE.BUILD.SYS.SUMMARY
Writes 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., 20231231CL

PL.CLOSE.HALT.PROCESS
This job will halt the COB execution when CLOSE.HLT.PRCSS in PL.CLOSE.PARAMETER is set to "Y" value.

RE.CYCLE.PL.CLOSE.PARAMETER
This job is responsible for updating the fields FINANCIAL.YEAR.END and LAST.YEAR.END in the COMPANY records
and also for cycling the CLOSE.FREQ.DATE in PL.CLOSE.PARAMETER during the first COB of the new financial year.
It is also responsible for resetting the CLOSE.OUT.RUN from “Y” to “N” in PL.CLOSE.PARAMETER.

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 2023 : 29-12-2023
First working Day of 2024: 01-01-2024

Figure 9 - SA.Start.Of.Year.Bal

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End of Year Procedure – R20 and Above

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
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 29 Dec
2023, whereas the savings account year end can be 29 Feb 2024. 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
running 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 2024 say 11 JAN 2024

Figure 11 - IC.Update.Inactive

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End of Year Procedure – R20 and Above

PC.PERIOD
If the POST.CLOSING module is installed and if the POST.CLOSING module is in use, then 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 2023.

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

Strongly
R20 PC_Contract 2 advised POST CLOSING related file creation fixes

Strongly The internal account number with sub-division code should be

R20 RE_YearEnd 2 advised determined to check whether the account is an HVT account.

RE_Report Strongly Performance related fix exists in RE.BUILD.LINE.MVMT job

R20 Generation 6 Advised while running year-end batch PL.MOVE.TO.AL

Strongly
R21 PC_Contract 2 advised POST CLOSING related file creation fixes

RE_Report Strongly Performance related fix exists in RE.BUILD.LINE.MVMT job

R21 Generation 3 Advised while running year-end batch PL.MOVE.TO.AL

System would not raise GL Difference during the year end

Strongly process since the Profits and Loss Close out records are read
R21 RE_YearEnd 1 advised and processed efficiently.

The condition to ERR is called after CHECK.FIELDS to throw

Strongly error properly. So the system does not throw any error when
R22 PC_Contract 4 advised the error variable (E) is set after CHECK.FIELDS in PC.PERIOD

RE_Report Strongly Changes done to pick dates properly when reports are
R22 Generation 11 advised generated through EB.EXTERNALISE.REPORT

Strongly The internal account number with sub-division code should be

R22 RE_YearEnd 1 advised determined to check whether the account is an HVT account.

The condition to ERR is called after CHECK.FIELDS to throw

Strongly error properly. So the system does not throw any error when
R23 PC_Contract 1 advised the error variable (E) is set after CHECK.FIELDS in PC.PERIOD

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End of Year Procedure – R20 and Above

RE_Report Strongly Changes done to pick dates properly when reports are
R23 Generation 3 advised generated through EB.EXTERNALISE.REPORT

*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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