Accounting & Evaluation / Interest Accruals

The Accounting Module serves two primary purposes. The first is to evaluate the Firm's inventory and trading profit and loss; the second is to create the interface to the General Ledger system.

Bookkeeping

The Bookkeeping Matrices are the primary drivers for the interface to the General Ledger. Based on the matrices, all accounting journals are created. The system design provides the ability to generate accounting entries at the three levels of the settlement / accounting process, namely: trade date, settlement date, and payment date.

On-line entry and validation of a trade in the db trader system is the first step in processing a securities trade. The trading system creates detailed accounting entries using accounting matrices. The accounting matrices were designed as a highly flexible interface between db trader and any General Ledger. The creation of new matrices that may be necessary for new business transactions does not require programming. New matrices can be added by users with the appropriate access rights. The matrices specify the General Ledger account to which the trade amounts have to be debited or credited.

General Ledger

The General Ledger is a multi-currency system facilitating automated consolidation into one or more currencies, companies or branches. When the end-of-day process is run, all data is passed from db trader to the General Ledger. Other features are budgeting and variance analyses, multiple calendars, input verification on-line, and transactions / historical data viewing. Both the Fixed Assets and the Accounts Payable Modules are fully integrated.

The Fixed Assets Module provides the capability to amortized each asset under all internationally accepted methods and to override scheduled entries.

The Accounts Payable Module facilitates cross currency processing, adherence to local tax requirements (i.e., UK VAT), and automatic processing of recurring entries.

Evaluation / Interest Accruals

Evaluation methods are geared both to mark-to-market and a lower-of-cost-or-market environments. The interest accrual programs calculate the accrued interest and evaluate the accrual and the interest purchased or sold to determine actual periodic interest income.

Tax Lot Assignment

When securities are sold, gain or loss amounts for tax purposes are automatically calculated on a FIFO, LIFO, or Average Cost basis. The Tax Lot Assignment module can be used for capital gains reporting to customers.