CFP Data processing - Financial simulation

Through this data process, the system calculates the interest and the shifts between sections for both notional and entity financial simulation. For every entity, the system processes the currencies handled and the entity’s preferred currency.

The system calculates the initial liquidity by entity / currency / section and, day by day, the cumulative balance of the liquidity accounts defined by section. Processes one day at a time and:

  • if the day is a month-end, for every entity / section / currency, the system calculates the accrued interest and the billing of interest, creating the following events:
  • event “$GPL” - Accrual, with the following characteristics:
  • account equal to the interest account
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item
  • reference account for cash flow calculation equal to the interest account
  • currency amount equal to the sum of all the days of the period (previous day liquidity * rate) / (36000 if interest calculation type is commercial or 36500 if it is calendar), reversed in sign
  • origin equal to “CFP_INTEREST_PL” - CFP - P&L interest
  • event “$GPL” - Accrual, with the following characteristics:
  • account equal to the interest accrual account: debit variation (if the interest is receivable) or credit variation (if the interest is payable)
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item
  • reference account for cash flow calculation equal to the interest account
  • currency amount equal to the sum of all the days of the period (previous day liquidity * rate) / (36000 if interest calculation type is commercial or 36500 if it is calendar)
  • origin equal to “CFP_INTEREST_PL” - CFP - P&L interest
  • event “$GBL” - Accounting, with the following characteristics:
  • account equal to the interest accrual account: debit variation (if the interest is payable) or credit variation (if the interest is receivable)
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item or to the entity currency if the section has the “preferred currency” flag active
  • reference account for cash flow calculation equal to the interest account
  • currency amount equal to the interest accrued grouped by applying the rules defined in the section
  • origin equal to “CFP_INTEREST_ACC” - CFP - Interests – Accounting
  • event “$GBL” - Accounting, with the following characteristics:
  • account equal to the bank account: capitalisation variation or debit / credit account for interest: credit or debit if collection / payment is subsequent to the interest capitalisation date
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item or to the entity currency if the section has the “preferred currency” flag active
  • reference account for cash flow calculation equal to the interest account
  • currency amount equal to the interest accrued grouped by applying the rules defined in the section, reversed in sign

  • origin equal to “CFP_INTEREST_ACC” - CFP - Interests – Accounting

  • in cases of deferred collection / payment, event “$GBL” - Accounting, with the following characteristics:

  • account equal to the debit / credit account for interest: debit (if the interest is payable) or credit (if the interest is receivable)
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item or to the entity currency if the section has the “preferred currency” flag active
  • currency amount equal to the interest accrued grouped by applying the rules defined in the section

  • origin equal to “CFP_INTEREST_DEFERRED_PAYMENT” - CFP - Interests - Collection / Deferred payment

  • in cases of deferred collection / payment, event “$GBL” - Accounting, with the following characteristics:

  • account equal to bank account: capitalisation variation
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item or to the entity currency if the section has the “preferred currency” flag active
  • reference account for cash flow calculation equal to the interest account
  • currency amount equal to the interest accrued grouped by applying the rules defined in the section, reversed in sign

  • origin equal to “CFP_INTEREST_DEFERRED_PAYMENT” - CFP - Interests - Collection / Deferred payment

  • the system also updates the day’s liquidity resulting from the capitalisation of the interest

  • the system calculates shifts between sections by entity / sequence / currency as follows:

  • based on the frequency of calculation, it checks whether the condition itself should be checked, in which case, if the condition is true, it creates a shift equal to the value of the “amount for condition verified”; however, if it is false, it creates a shift equal to the value of the “amount for condition not verified”
  • if the amount thus calculated is not zero, then the system creates the following events:
  • event “$GBL” - Accounting, with the following characteristics:
  • account equal to the primary account: debit variation for section shift (if debit) or credit variation for section shift (if credit) of the “section from”
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item
  • event date equal to the shift date
  • reference account for cash flow calculation equal to the Primary account: debit variation for section shift (if debit) or credit variation for section shift (if credit) of the “section to”
  • currency amount equal to the shift amount, reversed in sign
  • origin equal to “CFP_FINANCIAL_RULE” - CFP - Financial policy
  • event “$GBL” - Accounting, with the following characteristics:
  • account equal to the primary account: debit variation for section shift (if debit) or credit variation for section shift (if credit) of the “section to”
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item
  • event date equal to the shift date
  • reference account for cash flow calculation equal to the Primary account: debit variation for section shift (if debit) or credit variation for section shift (if credit) of the “section from”
  • currency amount equal to the shift amount
  • origin equal to “CFP_FINANCIAL_RULE” - CFP - Financial policy
  • event “$GBL” - Accounting, with the following characteristics:
  • account equal to the primary account: debit variation for section shift (if debit) or credit variation for section shift (if credit) of the “section from”
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item
  • event date equal to the shift reversal date
  • reference account for cash flow calculation equal to the Primary account: debit variation for section shift (if debit) or credit variation for section shift (if credit) of the “section to”
  • currency amount equal to the shift amount
  • origin equal to “CFP_FINANCIAL_RULE” - CFP - Financial policy
  • event “$GBL” - Accounting, with the following characteristics:
  • account equal to the primary account: debit variation for section shift (if debit) or credit variation for section shift (if credit) of the “section to”
  • custom dimensions equal to the elements of the default custom dimensions specified for the entity
  • currency equal to the currency of the original data item
  • event date equal to the shift reversal date
  • reference account for cash flow calculation equal to the Primary account: debit variation for section shift (if debit) or credit variation for section shift (if credit) of the “section from”
  • currency amount equal to the shift amount, reversed in sign
  • origin equal to “CFP_FINANCIAL_RULE” - CFP - Financial policy
  • the system also updates the liquidity for the current day and for the day of the reversal resulting from the shift
  • in cases of cash pooling, the CTP entity is defined for events created from the interest calculation and from section shifts with the CTP entity indicated in the execution plan or sections definition.

If the process being performed involves the calculation of the financial policy by counterparty entity, the interest calculation for section shift it takes place by counterparty entity and not by entity. Moreover, if exceptions to interest rates are being managed for the counterparties, the system uses those values for the calculation of the interest on the liquidity for those counterparties.