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GLOBUS USER GUIDE
APPLICATION ACCOUNTING
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CHAPTER 38
Ref. : APPACCT
July 1999
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TABLE OF CONTENTS
3
APPLICATION ACCOUNTING..........................................................................3-1
3.1
Introduction..............................................................................................................................3-1
3.2
Overview ...................................................................................................................................3-1
3.3 Main Accounting Files/Entries................................................................................................3-1

3.3.1
STMT.ENTRY .................................................................................................................3-1
3.3.2
CATEG.ENTRY ..............................................................................................................3-1
3.3.3
RE.CONSOL.SPEC.ENTRY ...........................................................................................3-2
3.4 CRB Keys/Files.........................................................................................................................3-2
3.4.1
CONSOLIDATE.ASST.LIAB file ...................................................................................3-3
3.4.2
CONSOLIDATE.PRFT.LOSS file...................................................................................3-4
3.5 CRB Examples..........................................................................................................................3-5
3.5.1
Account based example ....................................................................................................3-5
3.5.2
Transaction based example...............................................................................................3-6
3.6
Fiduciary Accounting...............................................................................................................3-7
3.7 Letters of Credit .......................................................................................................................3-9

3.7.1
Detailed Trade Finance accounting entries.......................................................................3-9
3.7.2
Import letters of credits...................................................................................................3-10
3.7.2.1 Issue of an import letter of credit ...............................................................................3-10
3.7.2.2 Amendment of an import letter of credit....................................................................3-11
3.7.2.3 Sight payment under an import letter of credit ..........................................................3-11
3.7.2.4 Usance Acceptance ....................................................................................................3-12
3.7.2.5 Sight collection - paid ................................................................................................3-13
3.7.2.6 Sight collection - not paid ..........................................................................................3-13
3.7.2.7 Usance collection - accepted or paid..........................................................................3-14
3.7.2.8 Usance collection - not accepted or paid ...................................................................3-15
3.7.2.9 Maturity of letter of credit..........................................................................................3-15
3.7.3
Export letters of credit ....................................................................................................3-15
3.7.3.1 Request to advise only ...............................................................................................3-16
3.7.3.2 Request to confirm.....................................................................................................3-16
3.7.3.3 Request to open..........................................................................................................3-16
3.7.3.4 Request to change an export letter of credit from advised to confirmed....................3-17
3.7.3.5 Amendment of an export letter of credit ....................................................................3-17
3.7.3.6 Sight payment under an export letter of credit...........................................................3-18
3.7.3.7 Usance acceptance of an export letter of credit .........................................................3-18
3.7.3.8 Discount of own acceptance (without a load amount) ...............................................3-19
3.7.3.9 Discount of own acceptance (with a load amount) ....................................................3-21
3.7.3.10
Sight collection - paid ...........................................................................................3-24
3.7.3.11
Sight collection - not paid .....................................................................................3-24
3.7.3.12
Sight collection - paid and payment made under reserve......................................3-25
3.7.3.13
Sight collection - not paid .....................................................................................3-26
3.7.3.14
Usance collection - accepted or paid.....................................................................3-27
3.7.3.15
Usance collection - not accepted or paid...............................................................3-28
3.7.3.16
Payments under reserve.........................................................................................3-28
3.7.3.17
Maturity of letter of credit.....................................................................................3-28
3.7.4
CHARGES .....................................................................................................................3-28
3.7.4.1 Charges applied immediately and not accrued...........................................................3-28
3.7.4.2 Charges applied immediately and amortised .............................................................3-29
Ref. : APPACCT
July 1999
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3.7.4.3 Charges claimed from beneficiary and paid...............................................................3-30

3.7.4.4 Charges claimed from beneficiary and not paid ........................................................3-30
3.7.5
Notes for charges accounting..........................................................................................3-31
3.8
Teller Accounting ...................................................................................................................3-32
3.9 Accounting for revaluation....................................................................................................3-35

3.9.1
Asset and Liability revaluation .......................................................................................3-35
3.9.2
Deal revaluation..............................................................................................................3-35
3.9.2.1 REVALUATION.PARAMETER..............................................................................3-35
3.9.3
Accounting entries for revaluation. ................................................................................3-36
Ref. : APPACCT
July 1999
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3 APPLICATION ACCOUNTING
3.1
Introduction
This section covers the basic of the accounting for each GLOBUS module in order to provide
an overview in a centralised place. This document will be expanded upon for new and
existing applications and feedback from users would be appreciated.
3.2
Overview
In order to understand the accounting details in each application it is necessary to understand

the concept of accounting in GLOBUS; accordingly the next few sections will provide a short
explanation.
3.3
Main Accounting Files/Entries
As bankers are used to the concept that for each credit or credits there is a balancing debit or
debits we shall proceed on that premise. In balancing the system GLOBUS uses a few key
accounting entry files and some database type balancing files. these are:
3.3.1 STMT.ENTRY
The STMT.ENTRY file contains the debit/credit entries that are passed over any accounts that
are entered in the ACCOUNT application. If you check a record in ACCOUNT you will see
several balances; such as OPEN.ACTUAL.BAL and OPEN.CLEARED.BAL , this concept could be
called a database type balance in that the amounts are affected by entries.
3.3.2 CATEG.ENTRY
All P/L entries are posted to the CATEG.ENTRY file and are amalgamated into the
CONSOLIDATE.PRFT.LOSS file. There is no actual General Ledger account for these entries,
the virtual account this uses is explained below.
Ref. : APPACCT
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3.3.3 RE.CONSOL.SPEC.ENTRY
The RE.CONSOL.SPEC.ENTRY file is so named as it contains the special entries used to
update the balances on the consolidation files. These entries are comprised of entries that are
not passed through the CATEG.ENTRY or STMT.ENTRY files.
3.4
CRB Keys/Files
As mentioned earlier GLOBUS does not require General Ledger accounts, so how does it
maintain a General Ledger system? In order to understand this let us consider the problems in
systems that use General Ledger accounts. An account must be opened in each currency you
deal in, for transactions such as loans you may have many different types such as corporate
loans, inter-bank loans, personal loans, to name just a few. If you need these broken down by
residence, nationality and industry that would mean for a basket of 12 active currencies there
would need to be at least 108 accounts! Obviously you may not open these all at once, but
over a period you will accumulate many accounts and their administration would require a lot
of effort.
In GLOBUS the transaction data is used to feed the General Ledger, this is accomplished by
telling GLOBUS how you wish to analyse the data. One of the first files set-up on
implementation is the CONSOLIDATE.COND, which has just two records viz. ASSET&LIAB
and PROFIT&LOSS. Here you specify where GLOBUS search for the required data such as
Industry code, Nationality, and Residence.
Once this file and the application parameters are in place GLOBUS is ready to create and
maintain a General Ledger. See the Reporting section of the User Guide for more details on
setting up the CRF system in GLOBUS.
Ref. : APPACCT
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3.4.1 CONSOLIDATE.ASST.LIAB file

This is easier to explain in an example, as the examples below should prove, but in essence
consider this as a record in a simple database. The key is decided by GLOBUS when the
underlying transaction is entered. In its simplest form it could represent just one ACCOUNT
where the conditions for the ACCOUNT are unique (e.g. you only have one Albanian Lek
current account for a Mexican national who is a resident of Australia).
The record has details of the debit balance or credit balance in the ACCOUNT currency
together with the local equivalent and the last movements and the total accruals for the
matching ACCOUNTs.
Now consider we want to report all debit balances for accounts we can simply sum the
records in local currency or by ACCOUNT currency. In reality we would report them by
ACCOUNT type; industry; sector and so on.
The same concept is used when the transaction is a Money market deal instead of an
ACCOUNT.
Figure 3-1 An AC record on CONSOLIDATE.ASST.LIAB
Ref. : APPACCT
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Note:
Some asset types are contingent and reported off balance sheet, others are non-contingent.
The CRF types, which we will be referring to, are detailed in the Reporting chapter of the
User Guide
3.4.2 CONSOLIDATE.PRFT.LOSS file
Similar in concept and use to the CONSOLIDATE.ASST.LIAB, this file records the balance
and movements based on the P/L categories.
Again when building the General Ledger we can sum records or report them based on our
required decisions. For example income earned on current accounts by industry.
Figure 3-2 Example CONSOLIDATE.PRFT.LOSS record
Ref. : APPACCT
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3.5
CRB Examples
3.5.1 Account based example

An ACCOUNT is opened and an entry is passed creating a debit balance, several days pass
and daily accruals are passed to reflect the overdraft interest being calculated.
The entries would be:
Value 21 Apr 1997
STMT.ENTRY
STMT.ENTRY
Credit Nostro Account

Debit Customer Account
USD 100,000.00cr
USD 100,000.00dr
After the first few days

During the EOD process GLOBUS will create two records with CRF types of CREDIT (for the
Nostro account) and DEBIT (for the customer account) respectively. Accruals for the
overdrawn customer account are raised by GLOBUS creating
CATEG.ENTRY
Credit to P/L category Interest earned

USD 10.00cr
RE.CONSOL.SPEC.ENTRY Debit to Interest Earned not Collected

USD 10.00dr
At Month end
At application of interest and charges the following entries are raised:
STMT.ENTRY
Debit Customer Account
USD 100.00dr
RE.CONSOL.SPEC.ENTRY Credit to Interest Earned not Collected
USD 100.00cr
So during the accrual period the CONSOLIDATE.ASST.LIAB record will show the balance as
a DEBIT with the accrual increasing from USD 10.00 up to USD 100.00 at application time when
it will be cleared by the payment from the client, thus making the new debit balance USD
100,100.00. The P/L balance will be reflected on the CONSOLIDATE.PRFT.LOSS increasing
from day one until it is left with the USD 100.00 as actual income received.
Ref. : APPACCT
July 1999
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3.5.2 Transaction based example

We agree (on the 20 April) to take on deposit a USD 1million Money Market contract from 21
April to 25 April 1997.
On the transaction date 20 April 1997
RE.CONSOL.SPEC.ENTRY Credit to Contingent, type FORWARDCR for
USD 1million cr
On Value Date 21 April 1997
RE.CONSOL.SPEC.ENTRY Debit to Contingent, type FORWARDCR for
USD 1million cr
Now the contingent is cleared we raise the liability entry.
STMT.ENTRY
Debit client account
USD 1million dr
RE.CONSOL.SPEC.ENTRY Credit to liability, type LIVECR for
USD 1million cr
During the life of the contract accruals will be created.
CATEG.ENTRY
Debit to P/L category Interest Paid (52000)

USD 1000.00 cr
RE.CONSOL.SPEC.ENTRY Credit to Interest Payable

USD 1000.00 dr
The same each day until maturity when the accruals will be cleared and the interest paid to the
customer.
Maturity Date
STMT.ENTRY
STMT.ENTRY
Credit client account (prin.) USD 1million cr

Credit client account (int.) USD 4000.00 cr
RE.CONSOL.SPEC.ENTRY Debit to liability, type LIVECR for

USD 1million dr
RE.CONSOL.SPEC.ENTRY Debit to liability, type 52000 for
USD 4000.00 dr
At the end of the process we have paid interest of USD 4000 which is reflected on the
CONSOLIDATE.PRFT.LOSS record.
Ref. : APPACCT
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3.6
Fiduciary Accounting
Accounting entries are generated at various stages throughout the life of the contract. These
are all contingent as the deposit and placement are off balance sheet items for the bank.
1) Order Unplaced
Only forward entries are raised i.e.
Dr
Cr
Dr
Cr
Drawdown A/C
(principal)
Principal Liquidation A/C
(principal)
Commission Liquidation A/C (commission)
Interest Liquidation A/C
(interest)
2) Order Placed
Forward Valued Order
Cr
CRF type FWDCONTCR
(principal)
Forward Valued Placement

Dr
CRF type FWDCONTDB
(principal)
3) Drawdown
Drawdown Order
Dr
Cr
Drawdown A/C
CRF type CONTCR
(principal)
(principal)
Commission in Advance
Dr
Cr
P&L PL Accr Comm
(commission)
Note: PL Accr Comm is a user defined category on FD.PARAMETER.
Drawdown Placement
Dr
CRF type CONTDB
Cr
Drawdown A/C
4) Commission in Arrears Accrual
Order
Dr
CRF type PL Accr Comm
Cr
P&L PL Accr Comm
(principal)
(principal)
(accrued commission)
(accrued commission)
5) Interest Payment
Order
Cr
(interest)
Commission in Arrears on Interest

Dr
Ref. : APPACCT
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Placement
Cr
CRF type PL Accr Comm
(commission)
Dr
(interest)
Dr
Cr
CRF type CONTCR

(principal)
(principal)
6) Maturity
Order
Commission in Arrears
Dr
Cr
CRF type CONTDB
(commission)
Placement
Ref. : APPACCT
Dr
Cr

CRF type CONTDB
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(principal)
(principal)
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3.7
Letters of Credit
3.7.1 Detailed Trade Finance accounting entries

This section outlines the accounting entries that can be passed for each event. The section has
been split into three. The first covers import letters of credit, the second covers export letters of
credit and the third covers charges.
Charges may be taken at any time but are shown here in a separate section to avoid repeating the
information against each transaction.
For each entry the following details are shown
The sign followed by the account group being updated

Entry type - Stmt, Categ or Special (see note below)
Amount
Transaction code (see note below)
Asset type for Special entries
The codes shown in the entry type column are as follows:

Stmt - statement entries on the STMT.ENTRY application
Categ - P&L entries on the CATEG.ENTRY application
Special - direct CRF entries on the RE.CONSOL.SPEC.ENTRY application.
Under the transaction code column the following is shown: If the entry type is Special the transaction code is shown.
If the entry type is Stmt or Categ then one of the codes below will be shown. This indicates
where the actual numeric transaction code will be obtained.
For the following, the transaction code will be taken from the LC.PARAMETER file :PAYDR
PAYCR
RESDR
RESCR
DISPY
DISPL
LOADPL
AMRT
CENCPY
CENCPL
CENCNP
Transaction code for debit settlement entries.

Transaction code for Credit settlement entries.
Transaction code for Reclaiming of a payment under reserve when payment not
received.
Transaction code for Payment under Reserve advance.
Transaction code for discount payment to customer.
Transaction code for discount accrual entry to P/L.
Transaction code for load accrual entry to P/L.
Transaction code for accrual of charges.
Transaction code for payment of claimed charges.
Transaction code for P/L entry for claimed charges.
Transaction code for P/L entry when claimed charges not paid.
Ref. : APPACCT
July 1999
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For the following, the transaction code will be taken from the FT.CHARGE.TYPE or
FT.COMMISSION.TYPE record :FTDR
FTCR
Transaction code for customer payment entry.

Transaction code for the P/L or Internal account entry.
For the contingent entries. the single sided entry is shown. This has been done so that when the
option for single sided contingent is used the entry shown will be the one raised.
Where the option to have self balancing contingents is taken then the opposite signed entry will
be raised. The sign will be different and the asset type will have BL at the end otherwise the
details will be the same.
Special entries will be always be raised as part of the end of day processing.
The Stmt and Categ Entries will either be raised online or as part of the end of day.
Detailed below are examples of the accounting movements the system generates in respect of the
various types of letter of credit and documentary collection transactions.
The examples only indicate the basic ACCOUNT movements. Credit entries to "Profit and Loss"
account have not been shown. However, to give an illustration of a transaction incorporating
profit and loss entries please refer to export credit item "Sight Payment".
3.7.2 Import letters of credits
Detailed below are the entries generated for the various types of imports in the date of input or
value date.
3.7.2.1
Issue of an import letter of credit
An LC is issued for 1 million: Credit "Outstanding Credit Unused"

Special
1,000,000
Ref. : APPACCT
NEW
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ISSUE
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3.7.2.2
Amendment of an import letter of credit
A letter of credit LC value is increased by 125,000:Credit "Outstanding Credit Unused"

Special
125,000
INC
ISSUE
DEC
ISSUE
110,000 decrease an LC value: Debit "Outstanding Credit Unused"

Special
110,000
3.7.2.3
Sight payment under an import letter of credit
On the value date a drawing for 300,000 is paid:Debit "Outstanding Credit Unused"
Special
300,000
LIQ
ISSUE
The following entries will always be raised online.

Credit nostro for payment to the remitting bank, beneficiary or customer
Stmt
300,000
PAYCR
Debit customer account for whom letter of credit was opened.
Stmt
300,000
PAYDR
Ref. : APPACCT
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3.7.2.4
Usance Acceptance
A drawing for 100,000 payable in 90 days is accepted.

On day of notification of acceptance received :Debit "outstanding credit unused".
Special
100,000
Debit "customers liabilities for acceptance".

Special
100,000
LIQ
ISSUE
NEW
ACPTCONTRA
Credit "outstanding acceptances"

Special
100,000
NEW
or
"Acceptances executed by Head Office & branches"
Special
100,000
NEW
or
"Acceptances executed by subsidiaries"
Special
100,000
NEW
ACPTBANK
ACPTHO
ACPTSUBS
On the expiry date of 90 Days :Credit "Customers liabilities for acceptance".

Special
100,000
MAT
Debit "Outstanding acceptances"

Special
100,000
NEW
or
Special
100,000
NEW
or
Special
100,000
NEW
ACPTCONTRA
ACPTBANK
ACPTHO
ACPTSUBS
The following entries will be raised online if the status is changed to MA online. Otherwise
entries will be raised as part of the end of day processing.
Credit nostro through which payment will be made to the other bank.
Stmt
100,000
PAYCR
Debit customer account for whom the letter of credit was opened.
Stmt
100,000
PAYDR
Ref. : APPACCT
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3.7.2.5
Sight collection - paid
A drawing for 350,000 payable at sight sent for collection/acceptance by the customer for whom
the letter of credit was opened.
On day sent for collection :Credit Items sent for collection"
Special
350,000
NEW
COLL
Debit "Outstanding credit unused".

Special
350,000
LIQ
ISSUE
Debit "Items sent for collection"

Special
350,000
PAY
COLL
On day payment received :-

Stmt
350,000
PAYCR
Stmt
350,000
PAYDR
3.7.2.6
Sight collection - not paid
A drawing for 225,000 payable at sight is sent for collection to the customer for whom the letter
of credit was opened and it is not paid.
On day sent for collection :Credit "Items sent for collection"
Special
225,000
NEW
COLL
NCP
COLL
On day notice of non payment is received :Debit "Items sent for collection"
Special
Ref. : APPACCT
225,000
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3.7.2.7
Usance collection - accepted or paid
A drawing for 150,000 payable in 90 days is sent for collection to the customer for whom a letter
of credit was opened and is accepted or paid.
Special
150,000
NEW
COLL
If only payment received on after payment date the process as for a sight collection paid.
Otherwise if acceptance received before payment date then process as follows.
On day acceptance received :Debit "Items sent for collection"
Special
150,000
PAY
COLL

Special
150,000
LIQ
ISSUE
NEW
ACPTCONTRA
Debit "Customers liabilities for acceptance".

Special
150,000
Credit "Outstanding acceptances"

Special
150,000
NEW
or
Special
150,000
NEW
or
Special
150,000
NEW
ACPTBANK
ACPTHO
ACPTSUBS
On the expiry date of 90 Days :Credit "Customers liabilities for acceptance".

Special
150,000
MAT

Special
150,000
NEW
or
"Acceptances executed by Head Office & Branches"
Special
150,000
NEW
or
"Acceptances executed by Subsidiaries"
Special
150,000
NEW
Ref. : APPACCT
July 1999
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ACPTCONTRA
ACPTBANK
ACPTHO
ACPTSUBS
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The following entries will be raised online if the status is changed to MA online, otherwise
Stmt
150,000
PAYCR
Stmt
150,000
PAYDR
3.7.2.8
Usance collection - not accepted or paid
A drawing for 175,000 payable in 90 days is sent for collection to the customer for whom the
letter of credit was opened and it is not accepted or paid.
Special
175,000
NEW
COLL
On day notice of non payment/acceptance is received:Debit "Items sent for collection"

Special
3.7.2.9
175,000
NCP
COLL
Maturity of letter of credit
When a LC matures with a balance of 250,000 yet to be drawn, then on the maturity date:Debit "Outstanding credit unused".
Special
250,000
MAT
ISSUE
3.7.3 Export letters of credit

The split for Head Office or subsidiaries will be obtained from the sector code of the customer
for bank for whom we are processing the letter of credit.
Ref. : APPACCT
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3.7.3.1
Request to advise only
Requested to advise a letter of credit which has been opened for 2 million. On the day the letter
of credit is input to GLOBUS: Credit "LC advised"
Special
3.7.3.2
2,000,000
NEW
ADVICE
Request to confirm
Requested to confirm a letter of credit which has been opened for 1.5 million. On the day the
letter of credit is input to GLOBUS:Credit "Outstanding credit unused"
Special
1,500,000
3.7.3.3
NEW
CONFIRM
Request to open
A letter of credit is issued for 1 million. On the day it is input to GLOBUS:Credit "Outstanding credit unused"
Special
1,000,000
Ref. : APPACCT
NEW
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OPEN
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3.7.3.4
Request to change an export letter of credit from advised to confirmed
We are originally requested to advice a letter of credit for 2.5 million. We are subsequently asked
to confirm the same letter of credit.
On the day the original letter of credit is input to GLOBUS:Credit "LC advised"
Special
2,500,000
NEW
ADVICE
On the day the letter of credit is changed to confirmed: Debit "LC advised"
Special
2,500,000
CON
ADVICE
Credit "Outstanding credit unused"

Special
2,500,000
ADV
CONFIRM
3.7.3.5
Amendment of an export letter of credit
A letter of credit is increased by 125,000. On the day of increase:Credit "LC advised" or "Outstanding credit unused"
Special
125,000
INC
ADVICE/CONFIRM/OPEN
A letter of credit is decreased by 110,000. On the day of decrease:Debit "LC advised" or "Outstanding credit unused"
Special
110,000
D
Ref. : APPACCT
July 1999
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ADVICE/CONFIRM/OPEN
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3.7.3.6
Sight payment under an export letter of credit
A drawing for 300,000 payable at sight is made then on the day payment is made :Debit "Outstanding credit unused"
Special
300,000
LIQ
ISSUE
These entries will always be raised online.

Credit account of customer requesting payment.
Stmt
300,000
PAYCR
Debit nostro through which payment will be received from the other bank.
Stmt
300,000
PAYDR
Note: A message (Swift, telex, etc.) will be sent to this bank to advise that payment has been
made under a letter of credit and requesting reimbursement.
3.7.3.7
Usance acceptance of an export letter of credit
A drawing for 100,000 payable in 90 days is accepted.

On day of acceptance :Debit "Outstanding credit unused".
Special
100,000
LIQ
ISSUE

Special
100,000
NEW
ACPTCONTRA

Special
100,000
NEW
ACPT
Credit "Customers liabilities for acceptance".

Special
100,000
MAT
ACPTCONTRA

Special
MAT
ACPT
On the expiry date of 90 Days :-
Ref. : APPACCT
100,000
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Stmt
100,000
PAYCR
Stmt
100,000
PAYDR
3.7.3.8
Discount of own acceptance (without a load amount)
A drawing for 200,000 is accepted payable in 90 days and is then presented for discount.
Special
200,000
LIQ
ISSUE

Special
200,000
NEW
ACPTCONTRA

Special
NEW
ACPT
200,000
On day of discounting assume this to be the same as acceptance day and that the amount for
discount is 75 per day which gives a total of 6,750 over the 90 days :The special entries will be raised as part of the end of day, but the Stmt entry will be raised
online.
Note, for the "Own acceptances discounted" and "Discount received not yet earned" the CRF
key will need to be created using the customer to whom the discount has been given.
Debit "Own acceptances discounted".
Special
200,000
NEW
LIVEDB
Credit "Discount received not yet earned".

Special
6,750
CAP
Discount category from LC Parameter.
Credit Account of customer request discount or suspense account.

Stmt
193,250
DISPY
Ref. : APPACCT
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At the first month end as part of the end of day run an accrual will be made for the current month
assuming 10 days in month 1. :Debit "Discount received not yet earned".
Special
750
ACC
Credit profit and loss for discount earned using the discount category code from LC.PARAMETER.
Categ
750
DISPL
At the other two month ends as part of the end of day run an accrual will be made for the current
month assuming 31 days in each of the months:Debit "Discount received not yet Earned".
Special
2,325
ACC
Credit Profit and loss for discount earned using the discount category code from LC.PARAMETER.
Categ
2,325
DISPL
On day expiry of 90 Days :These entries will be raised as part of the end of day run :Credit "Customers liabilities for acceptance".
Special
200,000
MAT
ACPTCONTRA

Special
200,000
MAT
ACPT
Debit "Discount received not yet earned".

Special
1,350
ACC
Credit P&L for discount earned using the category code from LC.PARAMETER.
Categ
1,350
DISPL
Credit "Own acceptances discounted".
Special
200,000
MAT
LIVEDB
Stmt
200,000
PAYDR
Ref. : APPACCT
July 1999
3-20
Release G10.0
GLOBUS USER GUIDE
3.7.3.9
Discount of own acceptance (with a load amount)
A drawing for 400,000 is accepted payable in 90 days and is then presented for discount.
Special
400,000
LIQ
ISSUE

Special
400,000
NEW
ACPTCONTRA

Special
NEW
ACPT
400,000
On day of discounting assume this to be the same as acceptance day and that the amount for
discount works out at being 150 per day giving a total of 13,500 over the 90 days and the extra
load amount is 50 per day giving a total of 4,500 over the 90 days :The special entries will be raised during end of day, but the Stmt entry will be raised online.
Note for the "Own acceptances discounted" and "Discount received not yet earned" the CRF
key will need to be created using the customer to whom the discount has been given.
Debit "Own acceptances discounted".
Special
400,000
NEW
LIVEDB
Credit "Discount received not yet earned".

Special
13,500
CAP
Discount Category from LC Parameter.
Credit "Discount(load) received not yet earned".

Special
4,500
CAP
Load Category from LC Parameter.
Credit account of customer request discount or suspense account.

Stmt
382,000
DISPY
Ref. : APPACCT
July 1999
3-21
Release G10.0
GLOBUS USER GUIDE
At the first month end as part of the end of day run an accrual will be made for the current month
assuming 10 days in month 1. :Debit "Discount received not yet earned".
Special
1,500
ACC
Credit profit and loss for discount earned using the discount category code from LC Parameter.
Categ
1,500
DISPL
Debit "Discount (load) received not yet earned".
Special
500
ACC
Load category from LC Parameter.
Credit profit and loss for discount (load) earned using the load category code from LC Parameter.
Categ
500
DISPL
At the other two month ends as part of the end of day run an accrual will be made for the current
month assuming 31 days in each of the months:Debit "Discount received not yet earned".
Special
4,650
ACC
Credit Profit and loss for discount earned using the discount category code from LC Parameter.
Categ
4,650
DISPL
Special
1,550
ACC
Credit Profit and loss for discount (load) earned using the load category code from LC Parameter.
Categ
1,550
DISPL
Ref. : APPACCT
July 1999
3-22
Release G10.0
GLOBUS USER GUIDE
On day of expiry, of 90 Days, these entries will be raised as part of the end of day run:Credit "Customers liabilities for acceptance".
Special
400,000
MAT
ACPTCONTRA

Special
400,000
MAT
ACPT
Debit "Discount received not yet earned".

Special
2,700
ACC
Credit profit and loss for discount earned using the discount category code from LC Parameter.
Categ
2,700
DISPL
Special
900
ACC
Credit profit and loss for discount (load) earned using the load category code from LC Parameter.
Categ
900
DISPL
Credit "Own acceptances discounted".
Special
400,000
MAT
LIVEDB
Stmt
400,000
PAYDR
Ref. : APPACCT
July 1999
3-23
Release G10.0
GLOBUS USER GUIDE
3.7.3.10 Sight collection - paid
A drawing for 350,000 payable at sight sent for collection to the Bank that opened the LC and
payment is made.
Special
350,000
NEW
COLL

Special
350,000
LIQ
ISSUE

Special
PAY
COLL
On day payment received :-
350,000

Stmt
350,000
PAYCR
Debit nostro through which payment was received from the other bank.
Stmt
350,000
PAYDR
3.7.3.11 Sight collection - not paid
A drawing for 225,000 payable at sight is sent for collection to the bank that opened the letter of
credit but it is not paid.
Special
225,000
NEW
COLL
NCP
COLL
On day notice of non payment is received:Debit "Items sent for collection"

Special
Ref. : APPACCT
225,000
July 1999
3-24
Release G10.0
GLOBUS USER GUIDE
3.7.3.12 Sight collection - paid and payment made under reserve
A drawing for 350,000 payable at sight sent for collection to the bank that opened the letter of
credit. Payment is made to the exporter under reserve and payment is received from the opening
bank.
Special
350,000
NEW
COLL
Debit "Payments made under reserve"

Special
350,000
NEW
PAYRES
The following entry will always be raised online.

Credit customer presenting the drawing.
Stmt
350,000
RESCR
On day payment received :Debit "Outstanding credit unused".

Special
350,000
LIQ
ISSUE

Special
350,000
PAY
COLL
Credit "Payments made under reserve"

Special
350,000
PAY
PAYRES

Stmt
350,000
PAYDR
Ref. : APPACCT
July 1999
3-25
Release G10.0
GLOBUS USER GUIDE
3.7.3.13 Sight collection - not paid
A drawing for 225,000 payable at sight is sent for collection to the bank that opened the LC.
Payment is made to the exporter under reserve and the payment is not received from the opening
bank.
Special
225,000
NEW
COLL
Debit "Payments made under reserve"

Special
225,000
NEW
PAYRES

Credit customer presenting the drawing.
Stmt
225,000
RESCR
On day of notice of non-payment is received:Debit "Items sent for collection"

Special
225,000
NCP
COLL
Credit "Payments made under reserve"

Special
225,000
NCP
PAYRES

Debit customer presenting the drawing.
Stmt
225,000
Ref. : APPACCT
RESDR
July 1999
3-26
Release G10.0
GLOBUS USER GUIDE
3.7.3.14 Usance collection - accepted or paid
letter of credit was opened and is accepted or paid.
Special
150,000
NEW
COLL
If the payment is received on or after the payment date then accounting is the same as for a sight
collection paid. Otherwise if the acceptance is received before payment date then process as
follows.
On day acceptance received :Debit "Items sent for collection"
Special
150,000
PAY
COLL

Special
150,000
LIQ
ISSUE

Special
150,000
NEW
ACPTCONTRA

Special
150,000
NEW
ACPT
Credit "Customers liabilities for acceptance".

Special
150,000
MAT
ACPTCONTRA

Special
NEW
ACPT
On the expiry date of 90 Days :-
150,000
Credit customer requesting payment.
Stmt
150,000
PAYCR
Stmt
150,000
PAYDR
Ref. : APPACCT
July 1999
3-27
Release G10.0
GLOBUS USER GUIDE
3.7.3.15 Usance collection - not accepted or paid
letter of credit was opened and is not accepted/paid.
Special
175,000
NEW
COLL
On day notice of non payment/acceptance is received :Debit "Items sent for collection"
Special
175,000
NCP
COLL
3.7.3.16 Payments under reserve
For export letter of credit it is possible that payment can be made to the customer at the time the
documents are presented. This payment is made under reserve meaning that if there are any
problems the money can be claimed back.
For sight collections the entries that will be raised are shown.
Similar processing can happen in Usance collections.
3.7.3.17 Maturity of letter of credit
When a letter of credit matures with a balance of 250,000 yet to be drawn, then on the maturity
date :Debit "Outstanding credit unused".
Special
250,000
MAT
ISSUE
3.7.4 CHARGES
3.7.4.1
Charges applied immediately and not accrued
Where a charge for 500 is applied directly and not accrued then the following entries are raised
on the date of the charge. These entries will be raised online, when the charges are entered.
Debit Customer paying
Stmt
500
FTDR
Credit profit and loss using the category code from the charge (see note 1)
Categ
500
FTCR
Ref. : APPACCT
July 1999
3-28
Release G10.0
GLOBUS USER GUIDE
3.7.4.2
Charges applied immediately and amortised
Where a charge for 600 is applied directly and accrued over 3 months then the following entries
are raised.
At time of charge (stmt entry raised online, special entry raised as part of the end of day run):Debit Customer paying
Stmt
600
Credit "Charges received not yet earned".

Special
600
FTDR
CAP
Category code from charge (see note 2)
At each month end, as part of the end of day run, assuming charges accrued over three equal
months:Debit "Charges received not yet earned".
Special
200
ACC
Category code from charge (see note 2)
Credit profit and loss for charges using the category code from the charge (see note 2)
Categ
200
AMRT
Ref. : APPACCT
July 1999
3-29
Release G10.0
GLOBUS USER GUIDE
3.7.4.3
Charges claimed from beneficiary and paid
Where charges for 700 are claimed from some one else then the following entries are raised.
At time of claiming charge (Categ raised online, special during end of day ):Debit "Charges claimed"
Special
700
CLM
Category code for claiming charges

(LC.PARAMETER.)
Credit profit and loss for the charges using the category code for charge (see note 1)
Categ
700
CENCPL
When charges are paid (Stmt raised online, special during end of day):Credit "Charges claimed"
Special
700
PAY
Category code for claiming charges (LC.

PARAMETER)
Debit customer paying charge

Stmt
700
CENCPY
Customer paying charge.
3.7.4.4
Charges claimed from beneficiary and not paid
Where charges for 800 are claimed from some one else but are not paid.
At time of claiming charge (Categ raised online, special during end of day):Debit "Charges Claimed"
Special
800
CLM
Category code for claiming charges

(LC.PARAMETER)
Credit profit and loss for the charges using the category code for charge (see note 1)
Categ
800
CENCPL
Category code for charge
When charges are paid (Categ raised online, special in end of day):-.
Credit "Charges claimed"
Special
800
NOP
Category Code for claiming Charges

(LC.PARAMETER)
Debit profit and loss for the charges using the category code for charge (see note 1)
Categ
800
CENCNP
Customer paying charge.
Ref. : APPACCT
July 1999
3-30
Release G10.0
GLOBUS USER GUIDE
3.7.5 Notes for charges accounting

Note 1.
The FT.CHARGE.TYPE and FT.COMMISSION.TYPE allow for either a CATEGORY

(P/L) or an internal ACCOUNT to be issued. This document has shown the
CATEGORY being used, but it can easily be an internal ACCOUNT in which case a
Stmt type of entry will be raised but the amount, sign and TRANSACTION code will
be the same.
Note 2.
The FT.CHARGE.TYPE and FT.COMMISSION.TYPE allow for either a CATEGORY

(P/L) or an internal ACCOUNT to be issued. Where charges are being accrued then
only the CATEGORY option can be used for the particular charge.
Ref. : APPACCT
July 1999
3-31
Release G10.0
GLOBUS USER GUIDE
3.8
Teller Accounting
It is possible to raise entries through the TELLER application that have exposure splits on them.
This has been illustrated with an example shown below:
Customer A makes a deposit for $12,000 of which $4,000 in cash and a $1,000 Cashiers
Check is made immediately available. The transactions made are described as under:
Transaction
Type
Cash
Cashier
Cheque
Cheque
(Local)
Cheque (Out
of State)
Cheque
(Foreign)
Ref. : APPACCT
Transaction
Amount
4,000.00
1,000.00
Amount
of Float
0
0
Number of
days float
0
0
500.00
500.00
5,000.00
2,000.00
3,000.00
1,500.00
4
8
13
1,500.00
July 1999
3-32
Release G10.0
GLOBUS USER GUIDE
The value date on all above transactions must be set to the same value. Let us assume that the
value date for all of the transactions made is the 29/06/98, the same as the booking date for
the transactions. Assuming that these are the only deposits made to the account, this would
cause the following balances on the account for the following days:
Date
29/06/98
30/06/98
01/07/98
02/07/98
03/07/98
04/07/98
05/07/98
06/07/98
07/07/98
08/07/98
09/07/98
10/07/98
11/07/98
12/07/98
13/07/98
14/07/98
15/07/98
16/07/98
Day of
the
Week
Mon
Tues
Wed
Thurs
Fri
Sat
Sun
Mon
Tues
Wed
Thurs
Fri
Sat
Sun
Mon
Tues
Wed
Thurs
Ref. : APPACCT
Float
Days
Actual
Days
0
1
2
3
4
5
6
7
8
9
10
11
12
13
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Total
amount of
Float
7,000
7,000
6,500
6,500
4,500
4,500
4,500
4,500
4,500
4,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
0
July 1999
3-33
Available
Balance
5,000
5,000
5,500
5,500
7,500
7,500
7,500
7,500
7,500
7,500
10,500
10,500
10,500
10,500
10,500
10,500
10,500
12,000
Ledger
(Book)
Balance
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Value
Balance
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
Release G10.0
GLOBUS USER GUIDE
If on Monday (the 5th business day from the first deposit) a deposit is made for 15,000 value
dated the 06/07/98 of which all checks are drawn locally and all items are floated for 3 days
as shown under:
Transaction
Type
Cheque
(Local)
Transaction
Amount
15,000
Amount
of Float
15,000
Number of
days float
3
The above table would be amended to as show under:

Date
29/06/98
30/06/98
01/07/98
02/07/98
03/07/98
04/07/98
05/07/98
06/07/98
07/07/98
08/07/98
09/07/98
10/07/98
11/07/98
12/07/98
13/07/98
14/07/98
15/07/98
16/07/98
Day of
the
Week
Mon
Tue
Wed
Thurs
Fri
Sat
Sun
Mon
Tue
Wed
Thurs
Fri
Sat
Sun
Mon
Tue
Wed
Thurs
Ref. : APPACCT
Float
Days
Actual
Days
0
1
2
3
4
5
6
7
8
9
10
11
12
13
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Total
amount
of Float
7,000
7,000
6,500
6,500
4,500
4,500
4,500
19,500
19,500
19,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
0
July 1999
3-34
Available
Balance
5,000
5,000
5,500
5,500
7,500
7,500
7,500
7,500
7,500
7,500
25,500
25,500
25,500
25,500
25,500
25,500
25,500
27,000
Ledger
(Book)
Balance
12,000
12,000
12,000
12,000
12,000
12,000
12,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
Value
Balance
12,000
12,000
12,000
12,000
12,000
12,000
12,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
27,000
Release G10.0
GLOBUS USER GUIDE
3.9
Accounting for revaluation.
3.9.1 Asset and Liability revaluation

The total current asset and liability position for each foreign currency is revalued at spot rate.
and the profit or loss is posted as specified in the AL section of the
REVALUATION.PARAMETER record.
3.9.2 Deal revaluation
Revaluation of Foreign Exchange deals is covered in the Foreign Exchange section.
Where contracts other than Foreign Exchange generate forward FX positions and consequent
revaluation profit and loss they can be revalued separately. The requirements can be specified
in REVALUATION.PARAMETER.
3.9.2.1
REVALUATION.PARAMETER
Figure 3-3 REVALUATION.PARAMETER non-FX deals
Ref. : APPACCT
July 1999
3-35
Release G10.0
GLOBUS USER GUIDE
3.9.3 Accounting entries for revaluation.

The revaluation is calculated on spot or rebate basis as specified for the application in the parameter record.
Asset/Liability revaluation is specified in the revaluation parameters as a special application.
ENTRY
Revaluation Loss
DR P&L Exchange
CR Exchange Adjustment
Revaluation Profit
DR Exchange Adjustment
CR P&L Exchange
SOURCE
STAT ENTRY
CATEG ENTRY
PRODUCT
CATEGORY
TXN
CODE
N/A
ACCOUNT.CLASS
= ExchAdj
N/A
LCYCATEGNNNN
LOSS.CATEG
N/A
LOSS.PROD.CATEG
N/A
LOSS.DR.TXN.CD
LOSS.CR.TXN.CD
ACCOUNT.CLASS
= ExchAdj
LCYCATEGNNNN
N/A
N/A
PRFT.DR.TXN.CD
N/A
N/A
PRFT.CATEG
PRFT.PROD.CATEG
PRFT.CR.TXN.CD
Table 3-1 Revaluation accounting entries
Ref. : APPACCT
July 1999
3-36
Release G10.0
GLOBUS USER GUIDE
Index of Tables & Figures

Figure 3-1 An AC record on CONSOLIDATE.ASST.LIAB ..........................................................................3-3
Figure 3-2 Example CONSOLIDATE.PRFT.LOSS record ...........................................................................3-4
Figure 3-3 REVALUATION.PARAMETER non-FX deals ...........................................................................3-35
Table 3-1 Revaluation accounting entries .....................................................................................................3-36
Ref. : APPACCT
July 1999
3-37
Release G10.0

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GLOBUS USER GUIDE

GLOBUS USER GUIDE

3.3 Main Accounting Files/Entries................................................................................................3-1

3.7 Letters of Credit .......................................................................................................................3-9

GLOBUS USER GUIDE

3.7.4.3 Charges claimed from beneficiary and paid...............................................................3-30

Teller Accounting ...................................................................................................................3-32

3.9 Accounting for revaluation....................................................................................................3-35

GLOBUS USER GUIDE

In order to understand the accounting details in each application it is necessary to understand

Main Accounting Files/Entries

GLOBUS USER GUIDE

GLOBUS USER GUIDE

3.4.1 CONSOLIDATE.ASST.LIAB file

Figure 3-1 An AC record on CONSOLIDATE.ASST.LIAB

GLOBUS USER GUIDE

Figure 3-2 Example CONSOLIDATE.PRFT.LOSS record

GLOBUS USER GUIDE

3.5.1 Account based example

Credit Nostro Account

After the first few days

Credit to P/L category Interest earned

RE.CONSOL.SPEC.ENTRY Debit to Interest Earned not Collected

GLOBUS USER GUIDE

3.5.2 Transaction based example

Debit to P/L category Interest Paid (52000)

RE.CONSOL.SPEC.ENTRY Credit to Interest Payable

Credit client account (prin.) USD 1million cr

RE.CONSOL.SPEC.ENTRY Debit to liability, type LIVECR for

GLOBUS USER GUIDE

Forward Valued Placement

Interest Liquidation A/C

Commission in Arrears on Interest

GLOBUS USER GUIDE

CRF type PL Accr Comm

Interest Liquidation A/C

CRF type CONTCR

Principal Liquidation A/C

GLOBUS USER GUIDE

3.7.1 Detailed Trade Finance accounting entries

For each entry the following details are shown

The sign followed by the account group being updated

The codes shown in the entry type column are as follows:

Transaction code for debit settlement entries.

GLOBUS USER GUIDE

Transaction code for customer payment entry.

Issue of an import letter of credit

An LC is issued for 1 million: Credit "Outstanding Credit Unused"

GLOBUS USER GUIDE

Amendment of an import letter of credit

A letter of credit LC value is increased by 125,000:Credit "Outstanding Credit Unused"

110,000 decrease an LC value: Debit "Outstanding Credit Unused"

Sight payment under an import letter of credit

The following entries will always be raised online.

GLOBUS USER GUIDE

A drawing for 100,000 payable in 90 days is accepted.

Debit "customers liabilities for acceptance".

Credit "outstanding acceptances"

On the expiry date of 90 Days :Credit "Customers liabilities for acceptance".

Debit "Outstanding acceptances"

GLOBUS USER GUIDE

Sight collection - paid

Debit "Outstanding credit unused".

Debit "Items sent for collection"