e2gen Account Reconciliations

Financial Institutions face the daily challenge of reconciling transactional items with the aim of reducing risks and manage the cash and commodities position profitably. However, this essential business requirement is often complicated by manual, error prone and time intensive processes; including rekeying of data and manually initiated import/export and matching activities. These labour intensive methods lead to potential financial risks by incorrect or untimely reporting information.

e2gen Account Reconciliations (AR) provides automatic reconciliation of cash or commodity items using matching rules, across an enterprise of all sizes and complexity from a single general ledger and statement system through to a fully integrated multiple business requirement.

AR significantly reduces the workload of reconciliation departments and achieves automatic matching well in excess of 90%. It allows users to concentrate on exceptions using the exception processing functionality, which includes automatic routing of referrals and proposed matching by other business areas. CR ensures that institutions can readily manage integrated cash and commodities reconciliation processing more efficiently, at a lower cost with significant reductions in risk and manpower.

Integrated Solution

AR installs on the IBM iSeries (i5) to provide a high performance, resilient and a fully scalable processing solution. Standard, end of day and intra-day ledger extraction is available for popular back office solutions including:

· Equation

· Globus

· G3

· IBIS

· ICBS

· MIDAS

· OLYMPIC

Standard and configurable extraction routines allow rapid deployment and return on investment. Unix and proprietary systems are also supported.

AR can also be configured to provide intraday matching of messages and ledger items.

Reconciliation Formatting Flexibility

The solution is typically configured for matching SWIFT MT940, MT950 or MT970 statements against the ledger items for cash and MT608 statements for commodities.

Message Type	Description
MT940	Customer statements
MT950	Nostro statement
MT970	Netting statement

If required the system can reconcile internal ledger accounts from one or more back office systems either directly from ledger extraction or from statement details created by those systems.

AR can accept data in any structured electronic format. Typical examples include LCH files, Excel spreadsheets, CSV and proprietary files.

KEY FEATURES

Exception Processing

AR provides an exception processing environment that monitors the following problems:

· Incomplete statement sets that have multiple pages.

· Inconsistencies between statement numbers

· Inconsistencies between the opening and closing balances on

· Statements where the sum of the entries isn’t equal to the difference between the opening and closing balances.

· Unidentified statements

Specific users notified immediately of these issues either via the e2gen user desktop or email.

Matching Rules

Matching rules are configurable by the users and are automatically applied at either a global or account level. Maintaining these rules ensures consistently high levels of automatic matching that minimises the need for manual matching activities. The matching rules include:

· Search String Matching

· Date Range Matching

· Date and Amount Matching

· Zero Balance Matching

· Group Item Matching

· Reversal Matching

Referral Management

The reconciliations users have the ability to electronically refer an item to a specific individual or department with optional notes and an overdue date by which the query should be answered. Users assigned to answer referrals can view them electronically, add additional notes, set the query to answered and optionally refer items to another department if they are permitted.

Proposed Matching

This feature reduces the need for using printed paper copies and phone calls of proposed matched items for the reconciliations dept. Proposed matching allows the referral user to propose a matching scenario with other outstanding items online to the reconciliations dept for review and acceptance or if authorised perform the actual matching themselves.

Automatic Referrals

The system has the ability to automatically refer unmatched transactions based on detecting scan strings within the statement or ledger items. This ensures that all supporting referral users can action their allocated entries immediately.

Compliance, User Security & Audit

User profile and static data changes are managed under dual control. Users can be allocated to, or prevented from handling specific functionalities and multi-currency processes. Comprehensive audit logs of all changes are available for the appropriate staff. Key benefits of this feature are:

· Configurable compliance & audit control

· User profile management

· Static data management

· User limits

· The matching difference limits

· Un-matching

· Dual control (4 eyes)

· Audit & message change audit

Other benefits include: Referral authority, External query authority, Query reassignment authority, User notes authority, Matching authorities, Account reconciliation authorities, Proposed match authorities.

All data changes are date and time stamped. All processing events (system and user) are logged on the audit trails and attached to each message.

GENERAL FEATURES

User Processing

Users review account positions and manage any exceptions highlighted by the solution. Items that could not be automatically matched by the system are analysed and where applicable used to augment the matching rules to achieve greater automatic matching rates.

Some of the functionalities provided for users are:

· Exception management

· Overdrawn account notifications

· Account status notifications

· Work panels & match difference displays

· Statement host ledger item detail look up

· Host ledger & message search look up

· Statement item & message search look up

· Advanced search facilities

· Grouping of items

· Referrals

· Proposed match processing

· SWIFT query & answer management

· User notes

· Paper statement input

External Queries

The ability to mark individual statement entries, select a query template and automatically format an external query message (via SWIFT MTn95) to the counterparty that sent the original statement is provided. Answers received (e.g. MTn96) are automatically linked to the original query and an optional notification sent to the appropriate users.

Comprehensive reporting

AR has a number of reports that can be printed manually or automatically as part of a normal daily cycle. These reports include:

· Unmatched Items

· Matched Items

· Matched Items with Value Date Differences

· Referral Report

· Unsettled Items Report

· Late and Non Receipts Report

· Unknown Payments Report

· Unsettled Items (excel export)

· Balance Control Report

· Nostro Positions Report

· Statistics Report

· Long Form Report (Luxembourg Statutory Reporting)

Other general features include:

· Multi entity processing

· Automatic statement and data file loads

· Automatic reconciliation

· Statement items to ledger Items reconciliation

· Ledger items to statement items reconciliation

· Ledger items to ledger items reconciliation

· Statement items to statement items reconciliation

· Statement validation & checking

· SWIFT compliant

· Multiple format support

· Export & import

· Exception processing & notifications

· Reporting & statistics

Appears on these sections

Nostro Reconciliation Systems

Reconciliation / Matching Systems

Product and service specifications

Database	• DB2
Language used	• Other
Operating system	• IBM i (i5/OS) • Windows 2003 • Windows Vista • Windows XP
Pricing structure	• Per seat • Volume-based
User interface	• GUI

Tags:

Account Reconciliations, iseries, SWIFT, automatic, matching, reference, workflow, process, solution, reduction, exceptions, lower cost, efficient

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