Management Accounting

The Management Accounting module has been successfully operated as part of the ABS SrBank for more than 10 years, it is constantly being improved and expanded, aggregating the best methods of banks. This module is an integrated solution as part of the SFTP technology platform, therefore it can be used both in banks and in financial companies.

In the standard version, all system settings are made at the level of functional subsystems, because ABS SrBank, SrFinance software, which are primarily OLTP systems. Forming management analytics is carried out by parameterizing all financial transactions of accounting for income and expenses individually for each accounting document, account, operation, transaction. A deeper setting of detail is possible, at the level of the amounts of individual documents in the context of analytical components. The management accounting complex works fully in automatic mode with a high level of detail. As an analytical module for storing and presenting analytical data, our analytical data storage system (DWH) is used, on the basis of which all storefronts, OLAP cubes, various types of reports are built, both using standard tools built into the system and using BI systems from various manufacturers.

Each object of the system is positioned in the context of a standard set of flexible hierarchical classifiers of management accounting:

1. A subject of the bank financial structure, derived from organizational, territorial, taking into account client orientation and business areas.
2. An object of the business-functional structure of the bank, which combines the classification of banking products and types of intra-bank income and expenses.
3. Management accounting operations classified according to the principle of income and expenses (interest, commissions of various types, reserves, other types of operating and non-banking income and expenses)
4. Counterparty and its category - reflecting the segmentation of the client base by business areas and priority of clients
5. Currency of operation or contract, allowing to obtain the currency structure of the financial result reflected in financial accounting in the national currency.
6. Business direction - deciphering by projects and areas of responsibility of the bank's business verticals.

The correct compilation of classifiers forms a universal management model for accounting for the bank's financial results, used in planning, analyzing, evaluating the effectiveness of business units and banking products.

This approach allows you to completely unload accounting from analytical functions unusual for it, and at the same time – to reduce costs, improve the quality and depth of analytics:

• To move away from detailed analytics of income and expense accounts, reduce their number by many times
• To simplify the setup of accounting schemes for banking operations
• To receive management analytics of the bank's financial results in real time
• To radically improve the detail and reliability of financial results analytics
• To reduce labor costs at the accounting stage and simplify the formation management reporting

Main functions of management accounting:

• Up to 95% of all postings are subject to fully automatic parameterization due to deep adjustment of the projection of the accounting model on management accounting classifiers.
• Possibility of manual adjustments and parameterization without intervention in accounting, including in archival periods
• Postings that require analytical detailing are split into separate amounts in the context of the relevant sources of external analytical data loaded into the banking system.
• Completeness control of parameterization is carried out automatically during creating and posting invoice documents.
• Analytical transcripts for documents of a consolidated nature can be downloaded from external accounting systems, as well as a special complex for accounting applications for business expenses, which is part of the Management Accounting complex.

For the management accounting of non-banking income and expenses, a special "Electronic Applications for Business Expenses" software package has been developed, performing the following functions:

• Forming applications for payment under business contracts with a detailed management transcript and primary documents in the form of file attachments of scanned copies of originals or any other of primary documents by initiating units
• Setting up and executing a business process for routing and approving applications up to their automatic payment
• Imposing an electronic digital signature, including a “qualified” one, on applications and file attachments
• Controlling the role authority and executive discipline of participants in the business process of application support and payments.
• Reflection of the analytics of the application in management accounting on the documents that form the financial result.
• Forming and managing versions of budget plans and control of limits for their execution during the life cycle of applications.
• Creating "plan-fact" reports according to the budget plans for economic costs.

The results of financial transactions reflection form analytical showcases and multidimensional reporting in the form of OLAP “cubes” in management accounting, bringing the ability to analyze the full financial result of the bank, obtained from both banking and business operations, to a fundamentally new level.

The second derivative of management accounting is the calculation of an internal transfer and the addition of management analytics to the result of transfer accruals, as well as the redistribution of non-banking expenses to business units using special drivers and coefficient matrices in the context of financial entities and functional objects.