See the NOVUS Walkthrough Guide for further information.
The TAKEREV program enables revenue items in the IBA to be batched up, settled and matched in a single operation.
The program makes suitable cashbook entries as if cash had been entered through the appropriate IBA cashbook, matched against the revenue records in the IBA, and then transferred to the office (target) account for that bank, along with the necessary NL (nominal ledger) journals.
Bank charges and write-offs are both supported, which are both offset against the revenue amounts. parallel processing of revenue and charges is also supported.
- Check that a suitable office account has been set up. There are no distinguishing features in an office account - except that it will not be used for IBA purposes.
- Check that each IBA bank account has got this (or any other) office account defined in the 'Office' column.
- Check that one bank account for each currency has the default field set to 'Y'. If there are more than one bank accounts for the same currency, ensure that only one of these is set to 'Y', the others being 'N'.
The program processes revenue records up to a particular date as entered. All transactions for this account that match the selection criteria are batched up by bank account and then processed together.
The program is divisionalised. The date to which revenue and bank charges are required is displayed on the right in the take revenue up to (date) field.
The revenue selection criteria and the revenue processing mechanisms depend on whether the program is run on a cash or a booked basis.
On a cash basis, it is assumed that there has been some cash matching on the opposite side which has caused funding to be generated on the revenue lines. The program will match the lines to the extent of the funding.
When matching the opposite side, the revenue lines are tagged with the cashbook associated with the opposite side match. In this way, the program will ascertain which originating cashbook will receive an appropriate cashbook entry.
If the program is used on a booked basis, the program must use the default bank account for the currency concerned in the BANK program. In the BANK program only one bank account may be set up as the default for each currency. The amount matched on a booked basis is the outstanding amount which causes the outstanding to be reduced to zero.
Revenue lines can be 'caught' more than once if part matching on the opposite side has occurred, whereas a revenue line can only be taken once on a booked basis.
For example, a premium of USD 100 might carry 12% brokerage. In this case, the transaction will show a credit line against the brokerage revenue account (XBK) of USD 12.00. If the client pays USD 80.00 through the CB1 cashbook, once the client line has been matched against the transaction in question, the XBK line will be tagged with the CB1 cashbook ID and will carry a negative funding amount of USD 9.60. On a paid basis, USD 9.60 will be taken, whereas on a booked basis the full USD 12.00 will be taken.
Once the USD9.60 is taken (paid basis) the funding on that line will be reduced to zero (and the outstanding reduced to USD 2.40), allowing this line to be negatively funded again on receipt of further cash from the client.
The use of the program is not restricted to brokerage - any (3-character) revenue account can be handled in exactly the same way. For example: if stamp duty applies on premiums, the system will produce transactions in the IBA ledger comprising a debit to the client for the duty, and a credit to a suitable IBA revenue account e.g. XBS. On a paid basis, payment of the stamp duty by the client will trigger TAKEREV to take the XBS negative funding.
Using the program
The program will take the appropriate revenue elements up to the date specified on the screen. If the reset field is set to 'Y' then the program will match all the transactions concerned but will NOT complete the cashbook and nominal ledger entries. In the case of bank charges and write_offs, the reset field has the effect of setting the date when charges should start to be taken.
As this program is designed to collect and move monetary amounts incrementally it is most important that the initial startup situation is addressed properly.
To move all revenue amounts and bank charges since the system was implemented, this can be achieved without any special care. If, however, revenue has been moved 'manually' with /without bank charges, such movements must be excluded i.e. to 'draw a line in the sand' as to where to start.
In this case, please read the following carefully and refer to Morning Data if further clarification is necessary.
Program function overview
This program determines: a) How much revenue (brokerage etc) can be moved from the IBA (client) bank account to the office account and (with the ‘offset charges’ option set to ‘Y’)
b) What bank charges and write-offs should be offset from the above revenue calculations.
The rate of exchange (IBA currency to Office account currency) acts as the trigger to run TAKEREV. It is, therefore, possible to run TAKEREV for only those bank records for which a rate of exchange has been entered. Rates of exchange are not required for the revenue report because the report is in IBA currency for each bank respectively.
This is the negative funding on the brokerage (XBK) lines caused by cash matching up to the specified date on the screen. The process of taking these revenue amounts sets the funding figures to zero and makes the appropriate entries in the cashbooks and Nominal ledger.
Subsequent cash matching on such items will cause additional negative funding to be created which will then become available to the TAKEREV program later.
Note that running TAKEREV twice for the same date will have no ill-effect – there will be no new items in the second run (assuming no historical cash matching has taken place between each run).
Bank Charges and Write-offs
This mechanism is different from the revenue mechanism. In the case of bank charges, TAKEREV will identify those charges/write-offs which have taken place since the last time TAKEREV was run with the offset bank charges option.
In the case of revenue, it does not matter about the date; Records will not be lost because cash matching has not yet taken place. If the revenue was not collected on this occasion it will be the next time the program is invoked.
Charges, on the other hand, are caught on a strict date basis. Only charges made through the cash book (or written off in the case of write-offs) between the last date TAKEREV was run and the current cut-off date will be caught.
Running this program for the first time
In the general case, it is assumed that prior to running TAKEREV, an external manual system has been in operation to move funds from the IBA to the office accounts. For ease of use, the program has currently been designed to allow revenue and bank charges to be handled separately.
The program supports the reset option which effectively allows revenue and bank charge movements made prior to running this program for the first time to be excluded. Without this function, the program would pick up all historical revenue and charges known to the system.
The recommended operation is:
Establish the date prior to which revenue is to be ignored (revenue date), and the date prior to which charges are to be ignored (charges date).
R: Revenue processing
Run the program with the ‘revenue’ option set ‘Y’, the ‘offset charges’ option set to ‘N’, the ‘reset’ option set to ‘Y’ and the date set to the revenue date you established above. This will set the known funding to zero on the brokerage lines affected by matching prior to the revenue date but there will no corresponding movement of cash. At this stage, the REVENUE part of the program has been initialised and is now ready to accept further cash matching which will be caught in a subsequent run of TAKEREV (With the reset flag set to ‘N’) for a later revenue date.
C: Charges processing
Run the program with the ‘revenue’ option set ‘N’, the ‘offset charges’ option set to ‘Y’, the reset option set to ‘Y’ and the date set to the charges date you established above. This will pick up the appropriate bank charges and set the last processed date to the charges date. There will no corresponding movement of cash. At this stage the charges part of the program has been initialised and is now ready to accept subsequent charges which will be caught in a subsequent run of TAKEREV with the offset charges set to ‘Y’ (with the reset flag set to ‘N’).
Once initialization for both revenue and charges has been accomplished the program should then be used normally with both the revenue and charges options set to ‘Y’ and the reset option set to ‘N’. Do not use the reset option set to ‘Y’ unless certain there are revenue or charges that must be ignored. In case of doubt contact Morning Data.
In normal running it is anticipated that a single run of TAKEREV will be made every month with the ‘revenue’ and ‘offset charges’ options both set to ‘Y’ and the reset option set to ‘N’.
|Revenue A/C:||Revenue accounts must be set up in the PARTNER program and tagged as 'revenue'. They must comprise of 3 characters only.|
|Reset:||In normal use, this should be 'N'. Only set this flag to 'Y' to establish a starting point in the process i.e. 'draw a line in the sand'. Only revenue accounts determined by the PARTNER record Revenue = Y should be accepted - either typed or from a list of values drop-down menu. To check the values in the drop-down menu are accurate run EPARTLIST including stopped accounts.|
|Div Code:||Only transactions against this division will be affected.|
|Take Revenue up to (date):||Enter the date (inclusive) to which records should be taken. This should be the previous date. Where the date is entered as todays date please note that write offs and bank charges of the same day will not be picked up on a later run of TAKEREV.|
The program first finds the transactions and reports the totals against the various bank accounts. At this stage, no database changes have taken place.
Enter the rates of exchange (ROX) in the main body of the screen. These are ascertained by contacting the bank(s) concerned and by making arrangements for the funds to be transferred. The rates of exchange will depend on the amount of money to move. By tabbing away from the main body of the screen and, clicking the run TAKEREV button, the program will process those cashbooks for which exchange rates have been entered.
The program will return folio numbers for the transfers which should be noted and used to investigate the source and target bank account and the NL journals via the currency conversion account if appropriate.
An available revenue report for all banks is produced when the Fire off Revenue Report radio button is selected. The report goes directly to the printer, it does not display on the screen.
When TAKEREV is processed a revenue taken report is sent directly to the printer as an audit trail. This report is for the selected banks only (i.e. records where an exchange rate has been entered).
v4.2.0 – Updated to the latest version
V31K URM 3723 - taken revenue report fired off on Process for processed banks only
V30M Bank interest added. cut off date must be in blocked period.
V29M Cut off date must be yesterday or erlier. report produced in Explorer.
V28K Cashbook.cur set to office_bank.dcur (was base_cur).
V27M Bank charges and write-offs implmented and processing separated from Revenue.
V21M Bank charges added (nominal ledger module required)
v19T First version of this form to use the new style. No other updates except the restyle.