{"id":545,"date":"2021-12-23T02:19:57","date_gmt":"2021-12-23T02:19:57","guid":{"rendered":"https:\/\/www.varshabi.com\/hoc\/?p=545"},"modified":"2023-03-30T16:27:28","modified_gmt":"2023-03-30T16:27:28","slug":"automated-reporting-of-balance-sheet-nettings-for-hedge","status":"publish","type":"post","link":"https:\/\/www.varshabi.com\/hoc\/automated-reporting-of-balance-sheet-nettings-for-hedge\/","title":{"rendered":"Automated Reporting of Balance Sheet Nettings for Hedge"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"545\" class=\"elementor elementor-545\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cee8cb7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cee8cb7\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;_ob_glider_is_slider&quot;:&quot;no&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-acbe6f8\" data-id=\"acbe6f8\" data-element_type=\"column\" data-settings=\"{&quot;_ob_column_hoveranimator&quot;:&quot;no&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ed09791 elementor-widget elementor-widget-heading\" data-id=\"ed09791\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Client\u2019s Business<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4711120 elementor-widget elementor-widget-text-editor\" data-id=\"4711120\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p class=\"home-font\">The customer is an American global hedge fund and financial services company. It is one of the world\u2019s largest alternative asset managers, with more than US$35 billion in assets under management (as of October 1, 2020).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-261626d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"261626d\" data-element_type=\"section\" data-settings=\"{&quot;_ob_glider_is_slider&quot;:&quot;no&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f83f2ea\" data-id=\"f83f2ea\" data-element_type=\"column\" data-settings=\"{&quot;_ob_column_hoveranimator&quot;:&quot;no&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3e202dd elementor-widget elementor-widget-heading\" data-id=\"3e202dd\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Challenge<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae7b779 elementor-widget elementor-widget-text-editor\" data-id=\"ae7b779\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p class=\"home-font\">The Trading Subledger data was manually copied from the eGlue report to the Derivative Netting Excel template file for the specific Accounting Period and Business Unit. The account details were then pulled manually into the Excel template. These details had to be maintained manually and often had manual errors. Account numbers were hardcoded in the template file to categorize the Financial Statement line items. Reclass account mapping was also maintained in the Excel template. All validations were done manually. The report had no ability to drill down to the raw data level for easy analysis. The adjustment records for all business units were not consolidated in any file or database. Finally, adjustment entries were manually uploaded to the ERP system.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b528f4c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b528f4c\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;_ob_glider_is_slider&quot;:&quot;no&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0415ae4\" data-id=\"0415ae4\" data-element_type=\"column\" data-settings=\"{&quot;_ob_column_hoveranimator&quot;:&quot;no&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-06c0f26 elementor-widget elementor-widget-heading\" data-id=\"06c0f26\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Solution<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8058c84 elementor-widget elementor-widget-text-editor\" data-id=\"8058c84\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p class=\"home-font\">The Fund Accounting team met with HOC&#8217;s team and mapped out multiple areas of the businesses where they could leverage process automation. With a strong focus on understanding the client, their process flow and the interaction of the systems and the files, HOC probed deeply to understand the internal function of the process in order to bring a stable solution.<\/p><p class=\"home-font\">To tackle the problem of manual maintenance and calculations, HOC directly interfaced with the Client\u2019s Trading Subledger SSAS model and Account Mapping databases and pulled in the required data with the latest version on-demand in ePic. The data was archived in ePic in the raw form and, after performing validations, used to generate the Reporting Base Data in ePic. With ePic&#8217;s highly configurable business rule engine, HOC generated the journal entries for FIN 39 and FIN 41 netting adjustments, populating them in the Staging Area.<\/p><p class=\"home-font\">Numerous validations were applied to the data in staging to ensure that the journal entries prepared are correct. Also, a detailed report was generated for the given accounting month and sent out to the users in an email. A \u201cValidate\u201d button was made available to the user in the staging area, which applied all the validation, once again, before finalizing the journal entries. An \u201cApprove and Post\u201d button made accessible to the user in the staging area in order to approve the journal entries and post them directly to the Adjustment Tool using REST API calls.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-14523e4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"14523e4\" data-element_type=\"section\" data-settings=\"{&quot;_ob_glider_is_slider&quot;:&quot;no&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9add5b3\" data-id=\"9add5b3\" data-element_type=\"column\" data-settings=\"{&quot;_ob_column_hoveranimator&quot;:&quot;no&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c5b6945 elementor-widget elementor-widget-heading\" data-id=\"c5b6945\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Result<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f9aceb0 elementor-widget elementor-widget-text-editor\" data-id=\"f9aceb0\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>By leveraging HOC\u2019s industry expertise and ePic platform, the client was able to streamline and automate the Balance Sheet Netting process. The maintenance of the Excel file and mapping data was discarded. Users did not have to interact with the Adjustment Tool to post the entries as the ePic application was configured to interface with the Adjustment Tool. The man-hours spent on the Netting Process were reduced from weeks to days.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-00f3be7 elementor-widget elementor-widget-heading\" data-id=\"00f3be7\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Outcomes & Benefits<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-187e7bc elementor-widget elementor-widget-text-editor\" data-id=\"187e7bc\" data-element_type=\"widget\" data-settings=\"{&quot;_ob_allow_hoveranimator&quot;:&quot;no&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li class=\"home-font\">Fixed the inefficient manual process of calculating the netting adjustments in Excel<\/li><li class=\"home-font\">Automated the calculation and posting of the netting adjustments directly to the client\u2019s Adjustment Tool from ePic<\/li><li class=\"home-font\">Reduced the reporting numbers from 20+ Business Entity reports to a single consolidated report with the ability to generate Entity specific reports<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Client\u2019s Business The customer is an American global hedge fund and financial services company. It is one of the world\u2019s largest alternative asset managers, with more than US$35 billion in assets under management (as of October 1, 2020). The Challenge The Trading Subledger data was manually copied from the eGlue report to the Derivative Netting [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1909,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[6,9],"tags":[],"class_list":["post-545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","category-case-studies"],"_links":{"self":[{"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/posts\/545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/comments?post=545"}],"version-history":[{"count":10,"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/posts\/545\/revisions"}],"predecessor-version":[{"id":2967,"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/posts\/545\/revisions\/2967"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/media\/1909"}],"wp:attachment":[{"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/media?parent=545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/categories?post=545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.varshabi.com\/hoc\/wp-json\/wp\/v2\/tags?post=545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}