DEPT - Departments
What is
DEPT is the department code maintenance program. It is used to create, amend and delete. Department codes allow for the segregation of business sectors, a significant operational feature in ITAS, the code can represent company divisions, profit centres, types of trading, etc. Departments can be grouped using category codes, which enables reporting by Dept Group (Category) and then Dept code to provide the heirarchy needed by the organisation.
All codes are used for a combination of the following:
1) validation of entries, to ensure correct data entry, This includes a FREEZE action to block further new use of that code.
2) grouping of accounts, for reporting or credit/risk analysis
3) indication for calculations, to define how entered values are to be used.
The information to be maintained is
a) Narrative,
b) Country code (Optional),
c) Category code (optional),
d) flag to indicate if the dept reflects joint business with a 3rd Party and the CLI code of the 3rd party, if applicable
e) The default liquidation account for WIP accounts that have referenced the department code (WIP, SETT)
f) For Hedge based trading companies, there are optional fields needed for automated trade record creation and automated TRS/TERM settlement
g) Spec Dept to indicate that the Dept code is operating as Speculation/Risk style in the F&O system with the specialist Strategy F&O subsystem.
h) Phys in Parallel System to indicate the Physicals in this dept are being operated in a parallel system e.g. domestic operation where local trades are maintained in a local system and international trades in ITAS. The summary local position is maintained in ITAS for completeness. These (non internal) trades will be excluded from Physicals M2M in EOMPO. GPLREP/Realised will use the contract value instead of invoiced value.
i) Purchase & Sale Prefix, optional. Enables different TRADE prefix for this Depts' entries
j) Status flag/tickbox to indicate that code is no longer in use i.e. excluded from active pick lists
When an ITAS entity is using departments as Profit centre and need to track/monitor Intra Comapny trading i.e. Dept X buys from Thirdparty and sells to Dept Y which sells to Thirdparty; there is a need to carefully follow the internal transfer price which is handled in ITAS (see topic Intra Company trading)