MEPACCRUE - Month End Un-Realised P&L Accrual


What is MEPACCRUE

MEPACCRUE is designed to calculate Trading un-realised Profit & Loss using the management values in TRADE/TERM/TRS and the month-end valuations. The result of this procedure is a full report (placed in OPRINT) and the production of a Temporary Adjustment journal that will post the total result between a balance sheet accrual account and the trading results in the PLR.

The procedures to produce the Accrual are as follows:

1. Save Data for P&L Accrual / Report
An Informal version of the data can be saved for either the current data or a frozen month end database. The data can be filtered by department so that only certain department’s data is saved.  Informal versions are REMOVED when the Formal is saved.  A formal version of the data can only be saved for a month end database and cannot be filtered.
No accounting documents are produced at this stage.
After 6 months, current saved data is moved to the archive, except for Year-end tables which always remain in current. The archive is tidied (i.e. tables removed completely) according to the system control for Number of Frozen tables to keep.

2. The data saved can be checked using the option ‘Report Saved Data’. If any adjustments are made (e.g. using TRADEV) the MEPACCRUE data will need to be re-freshed, using the Save Data process.

3. The Sales Invoiced P&L accrual can be run to produce the accrual accounting documents.

If the accrual is run, using an informal version of the data, the report of the unrealised values is produced but no accounting documents are produced.
If a formal version of the data is selected, accounting documents will be created to post the unrealised P&L from the WIP ledger to the nominal ledger.
If TAs are selected the document will be reversed in the following month. If JLs are selected the P&L will be moved permanently (i.e. it is not reversed out the following month).
The P&L is analysed down by department and by Physicals, Futures, Options, Commissions and FX.
The WIP leg of the accounting document will be posted to the dept.MEP account for the department e.g. (5100.MEP)
The nominal leg of the accounting document will be posted to the account specified in the MEPACCRUE ‘Nominate Accounts’ process. This can be either a four character suffix (e.g. SUGAR) in which case the department prefix will be used or a full nominal account if the company nominal ledger is not split into department accounts (e.g. COCOA).
The interest and miscellaneous accounts only used in the Management P&L report.
There is no control in MEPACCRUE to stop the accrual being run multiple times. If the accrual is run more than once the documents generated by the first run are NOT reversed
A dept.MEP WIP type account will need to be set up for each department before the accrual documents are generated.
Nominal ledger accounts will need to be set up for Physicals, Futures, Options, Commissions and FX in the ‘Nominate Accounts’ screen.
The FREEZE for the accounting period must have been completed before any formal MEPACCRUE can be saved.

Stock Accrual

There is a separate function of MEPACCRUE to accrue stock values from the WIP ledger (dept.MEP) to the nominal stock account(nominated in S01/View/Physicals/page2 /ctrl30_accrueto).
This is a single stage process so accounting documents are produced when a formal run is selected.
The MEPACCRUE transfer-to NOM accounts are coded as DEPT + ‘.’+ EXP suffix e.g. 5130.5100, the transfer-from WIP accounts are coded as DEPT+’.WIP e.g. 5130.WIP, 5140.WIP’

Single Currency Operation


Sales
If a sale is completely invoiced the single currency amounts are used.
If not invoiced the value used will be as per the Financial Calc.
If partially invoiced the financial calc value will be pro rata’d and the single currency amount added.
The amount to be accrued will be the single currency amount.

Purchases
If a purchase is completely purchase invoiced the single currency amounts are used.
If not purchase invoiced the value will be as per the Financial Calc.
If partially invoiced the financial calc value will be pro rata’d and the single currency amount added.
The amount to be accrued will be this value multiplied by the sales invoice percentage.

Costs
If a cost is completely invoiced the single currency amounts are used.
If not invoiced the value will be calculated.
If partially invoiced the calculated value will be pro rata’d and the single currency amount added.
The amount to be accrued will be this value multiplied by the sales invoice percentage.
The Costs values using the single currency amounts are calculated in McCalcConval by setting the flag Phys.SingleCcyCosts = True.

Reports
The detail and summary reports will show the values as calculated above i.e. including the single currency amounts for the invoiced percentage.

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