MERAP - Month End Reporting and Accruals
What is MERAP
The user has a choice of Current tables or any Frozen month-end from which to report.
The month end accrual/reporting pack will consist of 6 accruals/reports.
Each accrual/report will be run separately.
Only when reporting from a Frozen table will the proposed accounting entries be displayed on a grid ready for editing after the report is viewed, printed etc. The postings are then created from the grid, if requested. If the fiscal period has been closed, NO accounting entries can be produced but you can view the reports. It is the user responsibility to ensure that the formal MERAP is not duplicated, i.e. do not rerun and create accounting unless entries are required. If there is a need to rerun a formal MEARP, use DOCENT/EJL to reverse the previous posted documents for that period. If the user has sufficient access rights (CMP- GENERAL/AUTHORISE), the accounting documents can be authorised to update the ledgers immediately.
Report styles 3 & 4 will show the results in a grid first where adjustments may be effected. The adjustments are then incorporated in the report.
When the accounting documents are produced, a copy of the report is placed in the company OPRINT directory.
1. Unrealised Mark to Market
Includes Purchase contracts which are not invoiced (PI’d), afloat or warehoused and sales contracts which are not invoiced (SI’d)
Report as M2M Valuation with total of APs and ARs at the end.
Each contract’s forecast will be accumulated into total AP or AR.
Accrual amount is Forecast column.
Accrue to PLR unrealised physicals by dept.
Accrue from S01 nominated unrealised accounts payable (AP) or unrealised accounts receivable (AR) accounts.
2. Unrealised Mark to Market Inventory
Includes purchase contracts which are not SI’d but are partially or fully PI’d or have afloat or warehoused TRADE Shipping status.
Report as M2M Valuation.
Accrual amount is Forecast column.
Accrue to PLR unrealised physicals by dept.
Accrue from S01 nominated Inventory Mark to market account.
3. Inventory Accrual Adjustment
Includes purchase contracts which are not SI’d but are partially or fully PI’d or have afloat or warehoused status.
Reports full value, invoiced amount, difference and proposed accrual.
Reports by cost type by contract by dept with dept totals and report totals. Costs that are marked in PHYSCODES/Cost Types as ‘Not in Aged Stk’ are EXCLUDED from this report, consistent with TRAFREP/Aged Stocks
e.g.
Full Invoiced Difference Accrue
Value Amount amount
Dept A
Cn1 Purchase 1,000 800 200 200
Freight
Financing
Cn2 Purchase 500 500 0 0
Freight 90 0 90 90
Total Dept A
Purchase 1,500 1,300 290 290
Freight
Dept B
Cn3 Purchase 100 90 10 10
Total Dept B
Purchase 100 90 10 10
Grand Totals
Purchase 1,600 1,390 300 300
Freight
The accrual will go from the accrued liability accounts nominated per cost code (+ S01 nominated for purchases, sales and commission) to the S01 nominated accrual WIP A/c.
e.g. If invoice $90,000 of a $100,000 purchase, the WIP control will be $90,000DR, after the accrual it will be $100,000DR
4. Realised P&L
Includes only sales invoiced contracts. The report will be as inventory accrual adjustment but includes purchases and sales.
Accrue to PLR realised physicals by dept.
Accrue from the accrued liability accounts nominated per cost code (+ S01 nominated for purchases, sales and commission)
5. Open Futures and Options
‘This Month’ Includes all open futures and options, the variation margin for futures and premium held (London) options and market value for premium paid (NY) options by trade type by market by department.
‘Last month’ is the PLR unrealised futures & options values from the previous month.
‘Monthly Mvmnt’ is ‘This month’ – ‘Last month’
e.g.
Dept A This Month Last Month Monthly Mvmt
Open futures 10,000CR 2,000CR 8,000CR
Open options 7,000CR 0 7,000CR
Dept B
Open futures 20,000CR 5,000CR 15,000DR
Grand Totals
Open futures 30,000CR 7,000CR 23,000CR
Open options 7,000CR 7,000CR
The posting value is the monthly movement.
Post to PLR unrealised futures and unrealised options by dept
Post from open equity by broker. I.e. each broker will have its own ‘Ppen Equity N/L Account’ in the nominal ledger as entered in CLI/Trading details.
6. Broker Commissions
Commission will be paid on new business so no accruals will be necessary, so this is just a report.
The report will include all F&O with a trade date in the month.
It will show commission value, number of lots and average commission rate for F&O by broker by market by department.
Commission No. of Average Commission
Dept A Value lots Rate
NY11
PRU.T Futures 5,000 500 10
Options 2,000 100 10
ABN.T Futures 12,000 6,000 2
Total NY11 19,000 6,600 2.88
Total Dept A 19,000 6,600 2.88
Dept B
. NY11
PRU.T Futures 1,000 100 10
Total NY11 1,000 100 10
Total Dept B 1,000 100 10
NOTES
1) All 6 reports and postings will be in USD equivalent, converted using month end rates of exchange.
2) A/c nominations are by DEPT, PHYSCODES/Cost types
Tech note: Use S01...View Accrual nominations. This option is only visible for specific Accrual styles (Document Entry tab).