Reconciling Inventory Positions

From the Calypso Navigator, navigate to Processing > Reconciliation > BO Position Reconciliation to reconciling inventory positions against each other (menu action reporting.ReportWindow$BOReconciliation).

Any combination of the following types of positions can be reconciled: Client positions, Internal positions, and External positions.

You can reconcile real-time inventory positions computed by the Inventory engine, or inventory snapshots generated by the INVENTORY_SNAPSHOT scheduled task.

You can also run the RECONCILE_INVENTORY scheduled task to perform reconciliation on a regular basis.

 

1. Importing External Positions

Calypso allows importing MT950 messages for realized balances – They are identified as external positions and can be reconciled with internal positions.

See Integrating Payment Messages and Statements for details.

 

2. Sample BO Position Reconciliation Report

» You can check / uncheck View > Show Frame > Criteria to display / hide the search criteria.
» Specify search criteria as applicable and click to load the corresponding positions. The selection criteria are described below.
» You can select a template and click to display the number of objects that will be loaded from the database before loading the report.
» You can click to print the report results.

Note that for the Pivot view and the Aggregation view, the print icon is disabled.

You can use [Ctrl+P] or [Ctrl+L] to print the report, or you can export the report to Excel and print it from there.

 

Criteria Details

Criteria

Description

Report Date

Enter a report date. Positions on or before that date will be selected.

Agent

Select an agent (the owner of a settlement account).

Processing Org

Select a processing organization (the holder of a settlement account).

Aggregation

Select an aggregation level: Book/Agent/Account, Agent/Account, Agent, Book, Global, or Margin Call.

Use Issuance Underlying

Check to allow reconciling an internal Issuance position with an external Security position on the same security by converting the Issuance Product id to the Underlying Security id.

Position Date

Select a position date:

• TRADE — To load a position by trade date.
• SETTLE — To load a position by settlement date.
• AVAILABLE — Only applies to Client positions. Its purpose is to maintain the amount of cash or security available for trading in real-time, based on the client operations, The available position is computed based on the available date specified in the transfer.

Position Class

Select a position class:

• EXTERNAL — To load external positions.
• INTERNAL — To load internal Calypso-generated positions, which reflect the positions of the processing organizations.
• CLIENT — To load client Calypso-generated positions, which reflect the accounts of the clients.

Client positions are calculated on transfers with a given legal entity, for which the processing org and the agent are the same.

• MARGIN_CALL — To load margin call positions. Refer to the Calypso Collateral Management User Guide for details.

Position Type

Select a position type:

• ACTUAL — To load actual positions that contain transfers that have settled.
• THEORETICAL — To load theoretical positions that contain all transfers regardless of their status.
• FAILED — To load failed positions that contain transfers for which the settlement has failed. Status codes corresponding to failed transfers should be set in the transferFailedStatus domain.

You can also define a domain transferSettledStatus that contains all settled status codes, and remove the domain transferFailedStatus. All status codes not in transferSettledStatus will be considered not settled.

Note that the behavior described here is the out-of-the-box behavior. You can customize the inventory engine to build positions based on any status or any date, including new types of positions.

Label

Enter a label for identifying each position. The labels default to Base and Target. They will appear in the reconciliation results for the dates and totals columns.

Use SnapShot

Check to load the positions from an inventory snapshot, you will be prompted to select a snapshot.

Inventory snapshots generated by the INVENTORY_SNAPSHOT scheduled task.

Please refer to Calypso Scheduled Tasks documentation for details.

Otherwise, real-time positions are loaded.

Show Differences Only

Check to only display positions where there is a difference.

Include Cash

Check to display cash positions.

Include Security

Check to display security positions.

Reconcile Payments

Check to load actual payments. To reconcile the payments, right-click a row and choose Process > Reconcile Payments – Payments will appear in the Payment panel.

Filter Matured Security

Check to select the securities having Maturity Date > Report Run Date. Checkbox enabled only when “Include Security” checkbox is checked.

Filter Zero Balance

Check to filter zero positions from both sides of the reconciliation.

 

3. Reconciliation Results

 Ⓘ   [NOTE: The columns can be configured. Sort columns, subheadings and subtotals have to be explicitly specified. Choose Help > Menu Itemsfor details]

The default columns are described below.

You can click any column heading to sort the results based on that column.

You can right-click any row to invoke the functions of the report menus. Menus common to all reports are described under Help > Menu Items. The Process menu is described below.

 

3.1 Default Columns

The default columns are the following.

Columns

Description

Account

Position's account.

Book

Position's book.

Product

Position's currency.

<Base-Label> Date

Base position's date.

<Base-Label> Total

Base position's amount.

<Target-Label> Date

Target position's date.

<Target-Label> Total

Target position's amount.

Difference

=Target Total - Base Total.

Since Break

Number of days since the position has not been reconciled. The first time it is not reconciled, Since Break = 1.

Note that this column will only be populated if a reconciliation run for this position has been previously saved using Process > Save Run.

Since Change

Number of days since the position has had movements. The first time it has a movement, Since Change = 1.

Note that this column will only be populated if a reconciliation run for this position has been previously saved using Process > Save Run.

Key

The key is the product id for a security position and the currency for a cash position.

Comment

You can select a comment from the drop-down list. The default choices are “Match Found” and “No Match”. You can specify additional comments as applicable in the domain "ReconcileInventoryComment".

Assigned

You can enter a user name in this column.

 

3.2 Process Menu

The menu items of the Process menu are described below.

Menu Items

Description

Show Quantity

Show Nominal

Show Nominal (Unfactored)

These menu items operate as a checkbox - You can check only one at a time.

Check "Show Quantity" to display the quantity for position-based trades, or check "Show Nominal" to display the actual nominal amount, or check "Show Nominal (Unfactored)" to display the unfactored nominal amount.

Load Run

To load an existing reconciliation. You will be prompted to select a previously saved reconciliation.

New Run

To clear the selection criteria.

Save Run

To save the current reconciliation results. You will be prompted to enter a reconciliation name.

Save As New Run

To save the current reconciliation results as a new reconciliation. You will be prompted to enter a reconciliation name.

Delete Run

To delete an existing reconciliation. You will be prompted to select a previously saved reconciliation.

Reconcile Payments

When the “Reconcile Payments” checkbox is checked, you can right-click a position and choose Process > Reconcile Payments. The payments will be displayed in the Payment panel.

Position Detail

To bring up the Inventory Position report for a given position. You will be prompted to select a position label.

Explain Difference

Only applies if one of the positions is a snapshot, and if there is a difference between the base and target positions.

The Explain Difference report will be displayed.

Generate Difference

To generate a Simple Transfer for a given position for which there is a difference.

This only applies if the target position is of type EXTERNAL.

The legal entity attributes DEFAULT_BOOK and DEFAULT_CTPY can be set on the PO of the selected position.

Simple Transfer for Cash Position

• Type = Cash
• PO = PO of the BOOK
• BOOK = LE Attribute DEFAULT_BOOK
• Counterparty = LE Attribute DEFAULT_CTPY
• Direction = Deducted from the sign of the difference (negative=PAY/positive=RECEIPT)
• Principal = Absolute value of the difference
• Trade keyword TradeSource = MT950_ADJUSTMENTS
• Trade and Settlement date = Base Date in BO Reconciliation Report

Simple Transfer for Security Position

• Type = Security
• Transfer Type = Security
• PO = PO of the BOOK
• BOOK = LE Attribute DEFAULT_BOOK
• Counterparty = LE Attribute DEFAULT_CTPY
• Direction = Deducted from the sign of the difference (negative=PAY/positive=RECEIPT)
• TradeKeyword TradeSource = BORecon_MANUAL_SEC_ADJUST
• Quantity = Absolute value of the difference (follow current logic for Principal)
• Security = Selected security
• Trade and Settlement date = Base Date in BO Reconciliation Report

 

4. Troubleshooting

If you have the error, "Cannot find bucket RepoTrackingIn", when performing a BO Reconciliation on Security positions, you need to add RepoTrackingInventorySec to the domain "InventorySecBucketFactory".