12.5. Entry Code Maintenance

Entry Code Maintenance icon

Entry Code Maintenance is used to register and inspect entry codes that are used for accounting. For example, in order to manually book or automatically calculate various premium reserves, you must define the necessary booking codes for these premium reserves, e.g. Original Reserves, Financial Premium Reserves and Unearned Premiums. For automatically calculation of these premium reserves you must also define the necessary entry code groups needed as basis for these calculations.

When you click the Entry Code Maintenance icon, you see the Entry Code Maintenance window.

You see the Category and Sub Category columns that are system defined. For example, if you click the category Deposit, you see list of the sub categories, which are Loss Deposits and Premium Deposits.

The Category values are from a static reference table (165) and is parents of the Sub Category values from a non static reference table (223). It is possible to define new sub category values and assign these to one of the parent category values. But be aware that entry codes in a user defined sub category can not be used in any automatic calculations or functions in SICS, but these entry codes can be used in manual bookings.

As examples of automatic bookings;

Entry Codes defined in the the system defined sub category Interest On Premium Deposit under category Non-Technical, is available as Entry Codes to be selected for Interest On Premium Deposit in the Accounting Function Retrocession Accounting Proportional Treaty

Entry Codes defined in the the system defined sub category Unearned Reserves under category Reserve, is available as Entry Codes to be selected for Unearned Premium in the Accounting Function Unearned Premium Calculation.

The Entry Code display shows any entry codes that you have defined. (You must select a category and a sub category in order to see entry codes within that category.) When you click the right mouse button in the display, you see a pop-up menu with the following options:

• NewEntry Code for selected Sub Category, which lets you create a new entry code.
• Copy, which lets you copy a selected code in the list.
• Properties, which lets you view and edit the details of a selected code in the list. (Click the Edit button to change from View to Edit mode.)
• Display, lets you select All, Active, or Inactive codes to display in the list.
• Copy including EC Group assignment, which lets you copy a selected code in the list, including the Entry Code Group assignment of the selected Entry Code.
• View Entry Code Groups, opens the Entry Code Groups window where you can view, edit, remove or create new entry code groups.

Create New Entry Code #

When you select NewEntry Code for selected Sub Category from the pop-up menu, you see the New Entry Code window.

In the upper part of the window, you must enter the Name and Code for the new entry code. The rest of the window is divided into four tabs: Properties, Flags, Restrictions, Groups, Advanced, Usage Detail and Note.

The Properties tab is where you add the following information for the entry code you are creating: Description, Former Code(if any), Category(such as Deposit, or Cash Claim, for example), and Sub Category.

You can also indicate the status of the new entry code by selecting the Active box if it is active (meaning that it is allowed to be used when booking new accounts.) By default, the status is Active.

The Flags tab lets you indicate how the bookings are stored in the system, which makes reporting easier.

For example, you can indicate that premiums should be stored as positive, while losses are to be stored as negative on inward business. When the entry codesare used in booking on outward business, they are stored with the opposite arithmetic sign. You can also indicate whether the code is payable or receivable.

Also note that the “Is VAT Code” flag enables the calculation of Loss VAT and Reinstatement VAT on true net figures: That is the “Loss” part in the reinstatement calculation will not consider the “VAT on Loss” entry code, and also the “previous reinstatement will not consider the “VAT on Reinstatement premium”. The flag is only impacting these two entry codes, and only when the parameter “Calculate Loss VAT and Reinstatement/Reinstatement VAT on Net” has been activated.

Behaviour Group Box

Affects Liquid Balance: is always disabled and shows if the entry code, when used in booking, has an affect on the liquid balance or not.

Is Positive on Assumed Business: if this check box is selected, all amounts with this entry code booked on assumed business will be shown and stored as positive amount unless the user overwrites it.

Exception: In some cases, e.g. when calculating a deduction and the basis is a negative amount e.g. another deduction, then to get the deduction as a negative amount, you have to define the entry code as “Is Positive on Assumed Business”.

Is Excluded From Retrocession Estimation Calculation: select this if you want the entry code booked as estimate to be excluded from Retrocession Estimation Calculation order and Multi GAAP Retrocession order.

Note! This box must be selected if the code is to be included in Normal Retrocession Calculations!

Loss Related: select this option if the entry code is loss related. It is used to group loss related entry codes together in documents and reports.

Premium Related: select this option if the entry code is premium related. It is used to group premium related entry codes together in documents and reports.

Is Excluded from Retrocession: can be used to prevent a code from being automatically booked on the Outward Cedent’s contract as Original when a worksheet on an assumed business including this code is closed.

Is Positive on Outward Business: if this check box is selected, all amounts with this entry code booked on outward business will be shown and stored as positive amount unless the user overwrites it.

As default, this check box has the opposite value of the one for assumed business when the assumed business check box is changed, but the outward check box can be changed individually afterwards.

Allow in Retrocession Calculation: Select this option if you want to retrocede entry codes within Entry Code Sub Categories ‘Interest on Loss Deposit’, ‘Interest on Premium Deposit’, ‘Tax on Interest on Loss Dep.‘and ‘Tax on Interest on Premium Dep.‘from Proportional Treaty OCC ‘as Original’to OCC ‘as Booking’ when running the Retrocession (Estimation) Calculation Order. This option is disabled for all other Entry Code Sub Categories.

Usage Extended to Group Box In the group box ‘Usage Extended to’ you can indicate whether the code also can be used in claim accounting or as an estimate, or if the code can be used as estimate only.

Technical Worksheet: the entry code is available on technical worksheets if this check box is selected.

Can be Used on Estimates Also: select this check box if you want to allow the entry code to be used as Estimates as well as Actuals.

Is Excluded From Documents: select this check box if you want to exclude the entry code from document production. The field is visible for and has an effect on Non Liquide Entry Codes only.

Claim Accounting: the entry code is available on claim worksheets if this check box is selected.

Can be Used on Estimates Only: select this check box if you want to restrict this entry code to be used as Estimates only. This check box is disabled if the entry code is available in Claim Accounting or Cession Accounting.

Is Real Code Also for Administration Business: is used to indicate that this code should affect the balance sheet even if it is booked on an administrative business.

Cession Accounting: the entry code is available on cession worksheets and individual cessions (Life related only) if this box is selected.

Default in Claim Worksheet: The entry code is automatically appearing in detail section of the initial claim worksheet, when this has a “manual” origin (e.g. created from the Claim Ledger).

FGU Booking Group: If this entry code should be default for FGU booking on Claim, select a booking group. For example ‘Paid Loss’ if this is a paid loss entry code, ‘Reserves Loss’ if this is a Loss Reserve etc.). This option is only enabled when entry code is allowed for Claim Accounting.

Replacements Group Box

Allows Entry of Replacement Values:

To allow entry of replacement values, select this check box. A new list field appears enabling you to select Accounting Year, Underwriting Year, Occurrence Year or None. (None indicates all).

In addition to this the Replacement Rule drop-down list appears, allowing you to choose one Replacement Rule per Accounting Basis.

The following Replacement Rules are specifying how the Previous and the New values in the Replacement function (used when booking manually) should be calculated:

• Per Insured Period (IP) and Accounting Classification (AC): The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, and Accounting Classification as the booked detail.
• Per IP, AC and Headline Loss (HLL): The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Accounting Classification and Headline Loss as the booked detail.
• Per IP, AC and Occurrence Year (Occ Year): The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Accounting Classification and Occurrence Year as the booked detail.
• Per IP, AC, Occ Year and HLL: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Accounting Classification, Occurrence Year and Headline Loss as the booked detail.
• Per IP, Occ Year, Accounting Year, AC: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Occurrence Year, Accounting year and Accounting Classification as the booked detail
• Per IP, Occ Year, Accounting Year, Section, AC: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Occurrence Year, Accounting year, Section and Accounting Classification as the booked detail
• Per IP, Occ Year, Booking Year, AC: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Occurrence Year, Booking year and Accounting Classification as the booked detail
• Per IP, Occ Year, Booking Year, Accounting Year, AC: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Occurrence Year, Booking year, Accounting Year and Accounting Classification as the booked detail
• Per IP, Occ Year, Booking Year, Accounting Year, Section, AC: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Occurrence Year, Booking year, Accounting Year, Section and Accounting Classification as the booked detail
• Per IP, Occ Year, Booking Year, Section, AC: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Occurrence Year, Booking year, Section and Accounting Classification as the booked detail
• Per IP, Section, AC and Occ Year: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section, Accounting Classification and Occurrence Year as the booked detail.
• Per IP, Section, AC, Occ Year and HLL: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section, Accounting Classification, Occurrence Year and Headline Loss as the booked detail.
• Per IP, Section, AC, Occ Year, HLL and CLM: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section, Accounting Classification, Occurrence Year, Headline Loss and Claim ID as the booked detail.
• Per IP, AC and Original Underwriting Year (Orig UW Year): The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Accounting Classification and Original Underwriting Year as the booked detail.
• Per IP, AC, Orig UW Year and HLL: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Accounting Classification, Original Underwriting Year and Headline Loss as the booked detail.
• Per IP, AC, Orig UW Year and Section: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section, Accounting Classification and Original Underwriting Year as the booked detail.
• Per IP, AC, Orig UW Year, Section and HLL: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section, Accounting Classification, Original Underwriting Year and Headline Loss as the booked detail.
• Per IP, AC, Orig UW Year, Section, HLL and CLM: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section, Accounting Classification, Original Underwriting Year, Headline Loss and Claim ID as the booked detail.
• Per IP, Section and AC: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section and Accounting Classification as the booked detail.
• Per IP, Section, AC and HLL: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section, Accounting Classification and Headline Loss as the booked detail.
• Per IP, Section, AC, HLL and CLM: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Insured Period, Section, Accounting Classification, Headline Loss and Claim ID as the booked detail.
• Per AC and Occ Year: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Accounting Classification and Occurrence Year as the booked detail.
• Per AC and Orig UW Year: The replacement value is based on all closed details having same Currency, Estimate Indicator, Entry Code, Accounting Classification and Original Underwriting Year as the booked detail.

When booking on a business section with an Accounting Basis on the Administration Condition, the Replacement Rule for this Accounting Basis is used. If no Accounting Basis is registered, or no rule for this Accounting Basis is registered then the rules for <None> is used.You can define different Replacement Rules on different Accounting Basis for the same Entry Code.

Calculate based on As of Date:

The Allows Entry of Replacement Values check box must be selected before this new check box is enabled. Select this check box if you want to calculate replacement values on claim worksheet and technical worksheet based on as of date.

Comments Group Box

For codes requiring comments (such as the name of a cash loss).

Required: if this check box is selected, the user must enter a comment for this entry code in the notes field on the worksheet.

The Group tab is for view only and will show all groups to which this entry code is included.

The Restrictions tab lets you define whcih businesses the entry code is enabled for, i.e. by defining a Base Company, a Main Class of Business and/or a Type of Participation, this Entry Code will only be visible on the worksheet for the business if it contains the same Base Company, Main Class of Business and given Type of Participation. If the business contains a Base Company, Main Class of Business or Type of Participation NOT defined among the defined values, then it will not be visible on the worksheet.

After you have entered the information on the appropriate tabs in the New Entry Code window, click OK. You see the new code in the display list of the Entry Code Maintenance window.

Generate New Entry Code for Automatic Booking #

You can set SICS to automatically generate certain entry codes like, for example, loss reserves to the next insured period, appropriate accounting period, occurrence year, and booking period, depending on the accounting basis. Based on the Entry Code booked on the worksheet, the system can automatially generate an additional row with the same code or another code. You must select the source code, the target code and necessary parameters on the Advanced tab.The automatic booking will take place when the user closes a Technical- and/or Claim Worksheet.

These are the parameters you can set for each entry code (the advanced tab) that will automatically generate additional bookings. First define the entry code to be generated. For each entry code to be generated you can set the following parameters:

Use in Account Orders: This box must be selected, if you want the system to automatically trigger a new booking through one of the following Account Orders: Retrocession Calculation, Retrocession Estimation Calculation, Accrual Accounting on Inward, Unearned Premium Reserve, Original Premium Reserve. This function is useful in case you want the system to trigger in reserves for one Booking Period and an out reserve for next Booking Period when your run Account Orders instead of only booking Adjustments.

Use in Retrocession Accounting: When this box is selected, automatic bookings will be made on the Entry Code defined as New Entry Code of any Outward Cedents Contract or Retrocessionaire Participation assigned in the Proportional Protection Assignment of Assumed Business.

Claim Worksheet: When selected, automatic bookings will occur for bookings on Claim worksheets.

Technical Worksheet: When this box is selected, automatic bookings will occur for booking on Technical worksheets.

Validate Acc. Yr & Period Complete: When selected, automatic bookings will occur only if the source entry code’s Accounting Year is complete on the Business.

Share of Booked Amount: This determines how much (in percentage) of the source entry code’s amount shall be booked as the new generated entry code’s amount.

Sign for Booked Amounts: This drop-down list is disabled when Calculation Rule is Replace Premiums Balance for Whole Insured Period. For Calculation Rule Adjust Detail Booking Amount, the system books the new entry code’s amount with the same or with the opposite arithmetic sign as the source entry code’s amount.

Reduce Total Balance to Zero: When selected, the new generated entry code’s amount is calculated so that the total balance of this entry code becomes zero. The system reads the business ledger to figure out how much the generated entry code’s amount shall be. The intention with this parameter is to reduce e.g. Loss Reserve to zero if the booked Paid Loss is close to the remaining Loss Reserve on the Claim. Is used together with the Variance Limit %.

Only Book If Current Balance Diff From Zero: Enabled only when Reduce Total Balance to Zero is active. When selected, the new generated Entry Code will only be created if the current balance for the Entry Code is different from 0 on the relevant aggregation level.

Variance Limit%: The percent given here determines if the amount of the generated entry code shall make the balance to zero, see the Reduce Total Balance to Zero. If e.g. the Variance Limit is set to 10 % and you book a Paid Claim of -900 and the remaining Loss Reserve is -1.000 then the generated Loss Reserve amount will be 1.000.

Calculation Rule: Select Adjust Detailed Booking Amount from the drop-down list if you want the new generated entry code should be based on the source entry code only booked on the current worksheet.

Select Replace Previous Balance from the drop-down list if you want the new generated entry code should be based on the source entry code’s total balance, added up both from the current worksheet and from previous closed worksheets (i.e. from the business ledger). When this option is selected, the Replacement Rule field next to the Calculation Rule field appears.

Replacement Rule: For further description, refer to the Allow Entry of Replacement values parameter in the Create New Entry Code section.

Insured Period: Use the drop-down list to select between Same, Next and Next or Same. If Same, the system uses the Same Insurance Period as for the source booking. If Next, it will use the Next Insurance Period. If there is no Next Insurance Period, the system will NOTt make an automatic booking. If Next or Same, it will use the Next Insurance Period. If there is no Next Insurance Period, the system uses the Same Insured Period as for the source booking.

Occurrence Year: Use the drop-down list to select between Same,Next and Next or Same.
If Same, the system uses the Same Occurrence Year as for the source booking.
If Next, and the source booking have an Occurrence Year of 1998, the system will use 1999 as the Occurrence Year for the automatically booked amount.

The following rules apply for automatically created booking details:

• Accounting Period From and To Date will be set like, for example, 01.04.2000-30.06.2000 if the automatic booking Accounting Period is 2 of 4 for Insured Period 01.01.2000-31.12.2000.
• Due Date will be set to Accounting Period to Date if it is defined ‘same’ within Accounting Period. If ’next’ is defined and also Accounts are defined within the Administration Conditions, the Due Date will be set equal to the Payment Cedent Date. If the Accounts are not defined Due Date will be set equal to the Accounting Period To Date.
• Amendment. The system will use ‘Amendment 0’ for automatic booking if the Insured Period is set as ’next’. Accounting Period: Use the drop-down list to select Same, First, or Next.
  If Same, the system uses the same accounting period as for the amount to be adjusted.
  If First, the system uses the accounting period of, for example, 1 of 4, 1 of 2, etc.
  If Next, the system uses, for example, 2 of 4 if the amount to be adjusted is 1 of 4. If 4 of 4 are used for the initial booking, the system uses 1 of 4 for the automatically booked amount.

Accounting Year: Use the drop-down list to select between Same or Next.
If Same, the same accounting year as the amount to be adjusted is used. If Next, and, for example, the amount to be adjusted has 1998 as the accounting year, the system uses 1999 as the accounting year for the automatically booked amount.

Booking Period Local: Use the drop-down list to select between Same, Next or First.
If Same, the system uses the same Booking Period Local as for the source booking. If Next, and, for example, the source booking has Month 01 as the Booking Period Local, the system uses Month 02 for the Booking Period Local for the automatic booking.
If First, the system uses the first Booking Period Local, such as Month 01, for example.

Legal: Use the drop-down list to select between Same, Next or First.
If Same, the system uses the same Booking Period Legal as for the source booking.
If Next, and, for example, the source booking has Month 01 as the Booking Period Legal, the system uses Month 02 for the Booking Period Legal for the automatic booking.
If First, the system uses the first Booking Period Legal, such as Month 01, for example.

Global: Use the drop-down list to select between Same, Next or First.
If Same, the system uses the same Booking Period Global as for the source booking.
If Next, and, for example, the source booking has Month 01 as the Booking Period Global, the system uses Month 02 for the Booking Period Global for the automatic booking.
If First, the system uses the first Booking Period Global, such as Month 01, for example.

Booking Year Local:Use the drop-down list to select between Same or Next.
If Same, the same Booking Year Local as for the source booking is used.
If Next, and the source booking have a Booking Year Local of 1998, for example, the system will use 1999 as the Booking Year Local for the automatically booked amount.

Legal: Use the drop-down list to select between Same or Next. If Same, the same Booking Year Legal as for the source booking is used. If Next, and the source booking have a Booking Year Legal of 1998, for example, the system will use 1999 as the Booking Year Legal for the automatically booked amount.

Global: Use the drop-down list to select between Same or Next. If Same, the same Booking Year Global as for the source booking is used. If Next, and the source booking have a Booking Year Global of 1998, for example, the system will use 1999 as the Booking Year Global for the automatically booked amount.

Whether or not the end user has the option to Cancel, Reject, or Accept the automatic booking without first seeing a validation warning depends on whether or not the system parameter is set. If you select the Automatic Booking is Mandatory check box in the System Parameter Maintenancewindow, Accounting tab, Miscellaneous tab, automatic bookings are made according to the rules defined in the Entry Codeswindow. See Automatic Booking Mandatory in System Parameter Maintenance for more information.

Entry Code Usage Detail #

The Usage Detail tab lets you describe the exact purpose of the entry code within your organisation in more detail.

• Within the container with heading Entry Code Usage, you can select one or more values from the dynamic Reference Data 01085.
• Within the container with heading Entry Code Usage Details, you can select one or more values from the dynamic Reference Data 01086.

These two reference data have a parent/child relationship.

Values registered here, if any, do not affect functionality within SICS

View Entry Code Groups #

When you select View Entry Code Groups from the pop-up menu in the Entry Code Maintenance window, you see the Entry Code Groups window.

On the left-hand side of the window you see the Entry Code Group Category. If you select a category in that list, you see a list on the right-hand side of the window of the entry code groups that comprise that category. Click the right mouse button to see the following options:

• New Group, lets you create a new group (the name of the group, its active status, and the category to which it belongs).
• Copy Group, lets you copy the selected group to a new group. All Entry Codes and/or Entry Code Groups included in the source Group are copied over to the new Group.
• Edit Group, lets you edit the group name and the status of a selected group.
• Display, lets you select Active, Inactive, or All Groups for display.

On the bottom of the window is the Entry Code display list showing all entry codes or Entry Code Groups included in the selected entry code group. Click the right mouse button in the display list to see the following options:

• Add/Remove Codes, lets you add or remove codes from a group.
• Add/Remove Entry Code Groups, lets you add or remove other entry code groups to/from this group. It is possible to create an Entry Code Group that includes other Entry Code Groups. This can be done either by including one or several Entry Code Groups as Numerator and one or several Entry Code Groups as Denominator to create a ratio, or by including one or several Entry Code Groups without creating a ratio. Both options are meant for use in the Online Statistics and should only be used for Entry Code Groups set up to be shown in Online Statistics.
• Properties, lets you see the properties of the selected code. This option is only available if the line you have selected contains a single Entry Code.
• Display, lets you select_Active, Inactive,_ or_All_ entry codes and/or Entry Code Groups for display.

Entry Code Group Category : Summary Account Entries #

This entry code group is applicable only in Life. It is relevant when the system parameter ‘Enable Summary Account on Technical Worksheet’ is selected. On the Summary Account tab of the Technical Worksheet, bookings will be made on the basis of the Entry Code Groups that are defined under this Entry Code Group Category. When the above mentioned system parameter is activated, you will also see an option ‘Add/ Remove Entry Code Groups Rule’ in the Edit menu of any entry code group under this category. On selecting this option, you will be able to define a Source Entry Code Group and a corresponding Discrepancey Entry Code Group for the source. When the Sub SOA is validated and a discrepancey booking is created for the entry codes under the Source Entry Code group, the Discrepancey bookings will be created with the entry code as per the selected Discrepancey Entry Code group

Note: This is specific to ONLY the overall ‘Sub SOA’ functionality that is available when the system parameter’Enable Summary Account on Technical Worksheet’ is selected and therefore it is not reccomended that this Entry Code Group Category is defined independent of the system parameter