[Extension] Bookkeeping - Deferrals

Deferral processes generate deferral transactions for bookkeeping purposes. The "Deferrals" package contains separate processes for handling deferral of accrued interests, deferral of bond purchase price (with linear approach and contact yield method) and deferrals of other securities' purchase values based on the market value. Find more detailed descriptions of the processes below.

These deferral processes create transactions for bookkeeping purposes. You can map these transactions to appropriate bookkeeping accounts through posting rules - when these transaction are generated, appropriate postings are generated for accounting purposes. See also required transaction types for deferrals below.

This process calculates profits and losses for your currency accounts. It creates Cashflow in (Internal) and Cashflow out (Internal) transactions whose value equals the entire account balance, and which use the latest FX rate. The Cash out transaction realizes all profits on the cash account, and the Cash in adds back the account balance with the latest FX rate. The created transactions can then be used in accounting to handle account profits and losses.

This process calculates accruals for your bonds' accrued interests for bookkeeping purposes. The generated transactions can be used in bookkeeping to handle accrued interest properly, allowing you to book accrued interests of bonds for the period you have earned them, prior to the actual interest payment.

The deferral transactions created by this process contains the sum of accrued interests between the selected dates. You can select to either create one transaction per each bond, or a single combined transaction per portfolio (i.e. sum of all deferrals in the portfolio). In addition, you can configure the process to "reverse" the deferrals (or create counter-transactions to reverse the effect of the deferral) either with the same or a different transaction type - this allows you to book deferrals of accrued interest flexibly.

This process calculates deferrals for your bonds' purchase price for bookkeeping purposes. The generated transactions can be used in bookkeeping, allowing you to book purchase prices of your bonds periodically between purchase and maturity.

This process supports two methods for calculating the deferral transactions: linear method calculates deferral based on the bond purchase price versus its price at maturity, and constant yield method (also know as "amortized costs") calculates the deferral based on the bond's yield at the time of purchase versus its yield on the day of the deferral.

This process calculates deferrals for any kinds of securities for closing the portfolio at the end of the accounting year for bookkeeping purposes. The generated transactions can be used in bookkeeping, allowing you to re-valuate the booked purchase value of other types of securities based on the market value at year-end.

The deferral transactions created by this process re-valuate your open positions' booked purchase value based on the market value of the position at year-end. This allows you "close the books" on your portfolios at year-end. You can also calculate separate adjustments for changes in currency and security prices, and configure how the re-valuation affects your portfolio's booked purchase value.

This process supports creating a single adjustment, or creating separate adjustments due to currency and security changes. In the single adjustment mode, the logic compares the current booked purchase value against the market value and updates the booked purchase value:

If the process is configured to create separate adjustments due to currency and security changes, the logic is more complicated:

These processes create transactions, that can be mapped to appropriate bookkeeping accounts using posting rules. Follow the configurations below to set up the transaction types used by the processes: