In ‘Account mapping’ you create the rules and decide on which accounts each accounting entry item should be posted to. In simple terms, you just define item by item the Debits/Credits for each realised and unrealised posting item.
You should first create the most general rules applied in your company. This means, for example, that if in most cases your interest cost is posted to account number 23456, you should create this rule first. When you leave all special rule selections unselected (Companies, Instrument and Portfolio) it means that you are creating a general rule.
After that, you can create the exceptions for this rule. This means that Company ABC uses account 34567 ,so you should select Company ABC for that specific rule. Then, in all other cases the interest will be posted to 23456. However, for ABC Company you will use 34567 when posting interest cost.
The rules need to be created separately for each module: Lease, FX and Loan. When you start to create the rules, you can start by going through each item. Items can be then found when you select "Realised" or "Unrealised". Afterwards, a list of the posting items can be found in the dropdown list next to header "Item".
If you have both internal and external transactions in our system, you need to create 4 rules for each item using the pairs: "Internal and Positive", "Internal and Negative", "External and Positive" and "External and Negative". If you only have external transactions, you need rules for External transactions only.
After you have made the selections for that specific item, you can select from "Debit account number" and "Credit account number" the right accounts for this posting item. If the other side of the posting is a bank account, you can also choose "CHOOSE BANK ACCOUNT" in the drop down. This means that the system will take the accounting account information from the Bank account settings given for that specific bank account in ‘Settings -> Bank Accounts’.
All items and the sign of the value coming into accounting are found in ‘Reporting’ in. You can cross check numbers against the reporting. And, you can also check from reporting that the value comes into the accounting either as positive or negative (this is important to know when creating the rules).
If you don´t want some item to go into your reporting, all you need to do is select all possible Rule Pairs and inactivate the item by unticking the "Active" box.
Posting items by module
Lease items
Realised items
Realised Interest
The Value comes from the Lease payments report. If you are doing IFRS adjustment postings, you want to post this away from your rental account into financial expenses. In a normal situation the value comes out as positive.
Repayment of Loan
Value comes from the Lease payments report. If you are doing IFRS adjustment postings, you want to post this away from your rental account into BS to decrease liability value. In a normal situation the value comes out as positive.
Change to liability and asset
The Value comes from the Lease changes report. Positive values are additions into BS values and Negative are the opposite. Example: if the value is positive, the result would be Debit RoU Asset / Credit Lease liability.
Realised difference from change
The Value comes from the lease changes report. The posting is one sided, meaning that if positive, then select both debit/credit inputting the same account where you want to post gain from lease changes situations. If negative, select both debit/credit as the same account where you want to post loss from lease changes situations.
Realised FX result
The Value comes from the Lease changes report or from the Lease payments report. The realised FX result comes when you decrease your liability value either from lease changes or when you are repaying a lease where the entity and the agreement are in different currency. Positive value should be posted as debit BS liability / credit P&L gain. Negative value debit should be debit P&L loss / credit BS liability.
Lease payments made on or before commencement date
The Value comes from Additions to RoU Asset reports. The posting is one sided and is normally positive and should be posted credit rental from your P&L.In general, you use this for a lease with an advance payment style and this is the first payment.Use the same account for both accounts.
Initial direct cost
The Value comes from Additions to RoU Asset reports. The posting is one sided and normally positive and should be posted in your BS. Use both accounts for the same account.
Estimated cost for dismantling restoring asset
The Value comes from Additions to RoU Asset reports. The posting is one sided and normally positive and should be posted in your BS credit account. Use both accounts for the same account.
Incentives received
The Value comes from Additions to RoU Asset reports. The posting is one sided and normally negative, and should be posted in your BS debit account. Use both accounts for the same account.
Unrealised items
Accrued interest
The value comes from the Lease month end report. It comes if the payment is postponed from some month, or if there are less than 12 payments a year; and there is no payment in that month. Normally, the posting is positive and should be to debit your Interest expense in your P&L / accrued expense in your BS.
Unrealised FX result
The value comes from the Lease month end report. This is the FX valuations of your lease liability if your entity and lease agreement are in a different currency. If the value is positive, debit BS liability / credit P&L unrealised FX result(gain). If the value is negative, debit P&L unrealised FX result(loss) / debit BS liability.
Transfer to short term
This item needs to be set instrument by instrument. If you leave some instrument unchosen, this item will not come for this unselected instrument.
The value comes from the Lease’s month end report. This is the short term liability amount in base currency. During the selected reporting date this is the part of your liability that belongs to the short term (less than 12 months).The value is normally positive and should be debit BS long term liability / credit BS short term liability.
Depreciation
Depreciations are run to leases in unrealised sections, but those need to be run separately so in the depreciation file you have only depreciations.
The value comes from the Lease’s month end report. Normally, it comes positive and should be posted credit depreciation P&L / RoU Asset BS.
Loan items
Realised items
Realised Interest
The value comes from the Loan Transaction report. This is the Interest amount in base currency. Paid or received interest. If positive, this is income and normally posted debit bank account / credit P&L interest income. If negative, this is expense and normally debit P&L interest expense / credit bank account.
Capital payment
The value comes from the Loan Transaction report. This is the loan capital payment received or paid. If positive, this is received loan capital and normally posted as a debit bank account / credit BS. If negative this is paid loan capital and normally posted via a debit BS / credit bank account.
Realised FX difference
The value comes from the Loan Transaction report. This comes when you have a loan and you repay debt, or when you have an investment and you receive capital back if your entity and loan are in different currency. If positive, this is a win posted normally to a debit BS / credit P&L realised FX difference (gain). If negative, this is loss posted normally debit P&L realised FX difference (loss) / credit BS.
Fee payment
The value comes from the Loan Transaction report. If you have added single fee payments into some loan payment flow, this value will come into accounting. Positive debit bank / credit P&L income, Negative debit P&L expense / credit bank.
Capitalised interest
The value comes from the Loan Transaction report. If the interest of a certain loan or investment is capitalised, the interest value should be added into the loan/investment BS value. If positive then debit BS Investment / credit P&L interest income. If negative, then debit P&L interest expense / credit BS loan.
Unrealised items
Unrealised interest (accrued interest)
The value comes from the Loan month end report. It comes if there is unpaid interest on the report date that belongs to this report period. If it is a loan and the value is negative, the posting should be to debit your Interest expense in your P&L / accrued expense in your BS.
Unrealised FX difference
The value comes from the Loan month end report or if you are calculating valuation for the loan/investment then it comes from Loan valuations report. This is the FX valuation of your loan or investment, if it is in a different currency. If positive, this is a win posted normally tp a debit BS / credit P&L unrealised FX difference (gain). If negative, it represents a loss posted normally to a debit P&L unrealised FX difference (loss) / credit BS.
Price difference
The value comes from a Loan valuations report if you have loans or investments to which you are calculating the valuation against market value or market interest rates. Then, you will have a price difference and the valuation where we compare the BS value against the market value calculated for the report date. If the gain is posted to P&L, the postings should be made like this: If positive, this is a win posted normally to a debit BS / credit P&L (gain). If negative, this is a loss posted normally debit P&L (loss) / credit BS.
Bond premium
If you have a loan/investment with a bond instrument type and you have received or paid a premium, you need to post the premium accrual during your agreement term. So if it is gain/positive it should be posted normally debit BS / credit P&L (gain). If negative, this is loss posted normally debit P&L (loss) / credit BS.
Transfer to short term
This item needs to be set instrument by instrument. If you leave some instrument unchosen, this item will not come for this unselected instrument.
The value comes from the Loan Breakdown report. This is the short term liability amount in base currency. During the selected reporting date, it is the part of your loan or investment that belongs to the short term (less than 12 months), meaning if the loan debit BS long term liability / credit BS short term liability.
Foreign Exchange items
Realised items
Spot
The value comes from the FX Realised report. This result comes from realised FX deals when we compare deal spot rate and maturity date fixing rate. This posting is one sided, so if positive, put to both debit/credit the same FX gain account. If negative, put to both debit/credit FX loss accounts.
Interest
The value comes from the FX Realised report. This result comes from realised FX deals where there are points included in the deal. This posting is one sided, so if positive put to both debit/credit the same FX interest income account. If negative, put it into both a debit/credit FX interest expense account.
Unrealised items
Spot
The value comes from the FX UnRealised report. The result comes from FX deals when we compare deal spot rate and report date fixing rate. If positive, this is a gain posted normally via a debit BS accrued income / credit P&L (gain). If negative, this is loss posted normally via a debit P&L (loss) / credit BS accrued expense.
Interest
The value comes from the FX UnRealised report. The result comes from the FX deal where there are points included in the deal. Here we post the part of the interest that belongs to this report date period. If positive, this is a gain posted normally debit BS accrued income / credit P&L (income). If negative, this is a loss posted normally debit P&L (expense) / credit BS accrued expense.
Rate difference
The value comes from the FX UnRealised report. This result comes from the FX deal when we compare the interest rate difference between current market interest rates for the deal maturity. You need to have that currency pair forward rates in the system, so that you get this rate difference. If positive, this is a gain posted normally debit BS accrued income / credit P&L (income). If negative, this is a loss posted normally debit P&L (expense) / credit BS accrued expense.