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The Accounting Rules Engine (ARE) :
- Identifies the applicable accounting event for accounting transactions related to financial instruments and non-financial instruments.
- Organises subsequent, periodical measurement of assets and liablities
- Generates a set of debit/credit entries for each accounting event at individual transaction level for each configured GAAP in parallel and feeds these journal entries into data marts.
- Considers a specific chart of accounts and accounting logic while generating debit/credit entries for each GAAP. Chart of accounts and accounting logic can be individually defined for each GAAP, nonetheless the Accounting Rules Engine comes with a standard chart of accounts and accounting logic which can be used out of the box.
- Calculates general ledger account balances and feeds them into data marts specific for accounting in the result layer
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- In a first steps, the set of entries and related individual debit/credit entries are identified for an accounting transaction.
- In a second step, the general ledger account to which entries are to be posted is identified for each indiivdual debit/credit entry.
For both steps, the individual configuration of accounting logic and general ledger account assignment rules is supported. This enables an entity to consider the individual accounting policy and to use an individual chart of accounts.
Figure: Functional process steps of the accounting rules engine
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Accounting transactions can be:
- Imported from any third-party tool
- Derived on the basis of information provided by the estimated cash flow plan, taking
- Delivered payments,
- Maturities of the estimated cash flow plan and
- Periodical valuation events as well as
- Hedge information
into account.For details about supported types of accounting transactions, please read more in the manual: Accounting Transaction.
Accounting logic
The accounting logic links the accounting transaction with the set of entries.
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The account number assignment process selects all general ledger accounts for the configured group of general ledger accounts. Such a group can consist of one or more individual general ledger accounts. For the posting process, the general ledger account that fulfills the account assignment rule and has the highest number of hits will be selected.
FlexFinance Jabatix provides special templates for the set of entries for every financial product, every event, every GAAP. These standard sets of entries can optionally be adapted individually to each customer requirement.