| Accounting Highlights |
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| Unwind and Replay
Functionality |
| The Primatics Ēvolv Loan accounting engine
has full back-end support for unwinding business and accounting
events and to replay transactions due to changes such
as data corrections or to process older accounting events
received after month end close usually due to operational
timing differences. A loan can be replayed individually
based on any given date going forward while subsequently
processing all changes with an “as of date”
concept. The “as of date” concept allows a
view of the past based on old data and a view of the past
based on new data received. This allows full audit traceability
in an event of a correction or loan modification and
a resulting adjustment entry details the difference. |
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| Data Timeliness and
Dependency Data Management |
Ēvolv includes automatic
data management features that allow it to operate in environments where
upfront data quality functions are either absent or low.
Due to the quality and availability
of data in most financial institutions (usually a result
of archaic and non-integrated systems), new accounting
rules for exception processing are introduced. These accounting
rules are immediately under accounting audit microscope
due to their deviance from GAAP and hence materiality
questions are raised to management. Most commercial accounting
systems are unable to either stop the transaction when
critical supporting data is missing or even have the ability
to catch-up when the correct information is received.
More so, none of these systems have a “generic”
way to solve this complex problem.
Ēvolv has this concept built
into the core framework. The functionality is inherited
when new accounting events and modules are introduced
without any additional complex development. The design
and architecture supports any transaction to wait for
other transactions or for new correction events before
proceeding for accounting. Results of open transactions
are available on a real-time basis and can be corrected
in operations for successful backoffice processing. Once
data correction events or new events are sent, the accounting
engine will replay all pending events related to the loan
and process the loan from the very beginning of the lifecycle
until the current accounting period close. |
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| Cost Basis Tracking
and General Ledger Roll-forward |
| Ēvolv
tracks cost basis positions at any point through a loan
lifecycle on a daily basis. Tracking of the loan positions
and cost basis allows one central point for the organization
to maintain book values for loans that are subsequently
used for accounting entries. The results are stored at
a transaction level, where any activity such as amortization
would relieve the book value by a certain amount. The
cost basis is simply computed using the initial book value
and the subsequent changes to the book value at an activity
level. Given the way cost basis is booked and how the
change in cost basis is reflected, the positions by definition will always roll-forward. |
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| Accounting Daily
Close |
| Ēvolv accommodates to the users close cycle and includes support
for daily closes.
All transactions, including new loans and modifications to existing loans
can be brought in, processed and be booked on a daily basis.
The resulting accounting entries
provide management with an accurate accounting picture based on the data that is available
at that time.
Any operational timing difference will subsequently trigger
the unwind and replay functionality and adjusting entries are booked
in the current period to adjust for differences. |
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| General Ledger |
| Ēvolv has a very flexible "rule-based"
General Ledger posting engine that allows the user to configure the booking logic for each
transaction. Since the Ēvolv sub-ledger tracks all activity/transactions at the lowest level (loan or even fee type level) it allows the user to develop comprehensive accounting posting logic to accommodate institutional needs. |
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| Data Versioning |
| Ēvolv remembers
all transactions and provides an “as of date”
view of every accounting period close whether it is daily,
monthly or quarterly. Hence, no records are either deleted
or updated in the system to retain the audit trail required
to re-produce any numbers that were run historically.
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