9.3. Accounting Classification
Accounting Classification #
You can define how the system behaves when it automatically assigns the name to an Accounting Classification. Accounting Classifications are created from a business or a worksheet. (Refer to the User’s Guide for further information about creation of Accounting Classifications).
- Double-click the System Administrator folder from the SICS Workstation desktop.
- Double-click the System Parameter Maintenance icon. You see the System Parameters window.
- Click the Accounting Classification.
- Click Edit to open the Edit System Parameter window where you can edit and maintain the parameters of the Accounting Classification.
You can select all, some or none of the check boxes depending on how many details you want the Accounting Classification name to include.
Accounting Classification Name box:
| Field | Description |
|---|---|
| Allow Manual Edit of Accounting Classification Name | Selected: You are allowed to manually overwrite the system generated Accounting Classification Name. (Refer to the Maintain Accounting Classification chapter placed under the View Business Highlights chapter in the User’s Guide for further information.) Cleared: You are not allowed to edit the system generated Accounting Classification name. Relevant when: Select this parameter when you want to be able to change the system generated Accounting Classification names. Applicable for: P&C, Life |
| Use Reference Data Code in Accounting Classification name | Selected: The Accounting Classification Name is created including the Codes from Reference Data. Each Coverage Criteria value defined in the coverage of the agreement has a code. When an Accounting Classification is automatically created from these values, the codes are used to create an Accounting Classification name. Cleared: No codes from reference data are included in the Accounting Classification name. Relevant when: Select this parameter when you want to include the Reference Data Code of each Accounting Classification value as part of the name. The Code may be used alone or in combination with other names or codes determined by the remaining parameters of this tab, e.g. Reference Data Short Name, Reference Data Name, Legal Area, etc. Applicable for: P&C, Life |
| Use Reference Data Short Name in Accounting Classification name | Selected: The Accounting Classification name is created including the short name from Reference Data. Each Coverage Criteria value defined in the coverage of the agreement has a short name. When an Accounting Classification is automatically created from these values, the short names are used to create an Accounting Classification name. Cleared: No short names from reference data are included in the Accounting Classification name. Relevant when: Select this parameter when you want to include the Reference Data Short Name of each Accounting Classification value as part of the name. The Short Name may be used alone or in combination with other names or codes determined by the remaining parameters of this tab, e.g. Reference Data Code, Reference Data Name, Legal Area, etc. Applicable for: P&C, Life |
| Use Reference Data Name in Accounting Classification name | Selected: The Accounting Classification name is created including the name from Reference Data. Each Coverage Criteria value defined in the coverage of the business has a name. When an Accounting Classification is automatically created from these values, the names are used to create an Accounting Classification name.Cleared: No names from reference data are included in the Accounting Classification name.Relevant when: Select this Parameter if you want the Accounting Classification name to be assigned including the full name of each value, e.g. the full name of Main Class of Business and Class of Business. The Name may be used alone or in combination with other names or codes determined by the remaining parameters of this tab, e.g. Reference Data Code, Reference Data Short Name, Legal Area, etc. Applicable for: P&C, Life |
| Allow Equal Accounting Classification Name< | Selected: When this parameter is ON, the validation of the Accounting Classification Name is turned off i.e. system allow to create a new Accounting Classification with the same name as an existing Accounting Classification on the same Business/Insured Period. Cleared: When the parameter is OFF it means that the validation of the Accounting Classification Name takes place. The validation also takes Inactive and Invalid Accounting Classifications into account in this validation and it requires that all Accounting Classification Names are unique within the Insured Period. Relevant when: Select this parameter if you should be able to create new Accounting Classifications with the same name as existing Accounting Classification that has been inactivated or invalid because of change in the mandatory classification elements. But do NOT select this parameter when you want to be sure that ALL Accounting Classification Names on a Business/Insured Period are unique. Applicable for: P&C, Life |
| Include Legal Area Code in Accounting Classification name | Selected: The Accounting Classification Name is created including the Legal Area Code of the Countries or Country Groups covered by the agreement. Also the parameter Legal Area is Mandatory in Section and Accounting Classification must be selected in order to include the Legal Area Code in the Accounting Classification Name. Refer to Refer to parameter FGU Quotation Figures under Base Company Specific Settings/Claim Specific for further information about this parameter. Cleared: No Legal Area Code is included in the Accounting Classification name. Note that if the Base Company Specific Settings parameter ‘Legal Area is Mandatory in Section and Accounting Classification’ is selected, the Legal Area Code will be part of the Classification item, however not included in the name. Relevant when: Select this parameter if Legal Area is mandatory in Accounting Classification and you want to include the Legal Area Code as part of the Accounting Classification name. If more than one Legal Area is covered by an agreement, the Accounting Classifications are split by Area Codes. For instance when the Legal Area code is included in the Accounting Classification name, the Accounting Classification can be selected directly in the Technical Worksheet without having to select Legal Area first. Applicable for: P&C, Life |
| Include Residence Area Code in Accounting Classification name | Selected: The Accounting Classification Name is created including the Residence Area Code of the Countries or Country Groups covered by the agreement. The Residence Area must also be defined to be in use in the Accounting Classification Classification Rules 2 in order to include the Residence Area Code in the Accounting Classification Name. Cleared: No Residence Area Code is included in the Accounting Classification name, even if it is defined in the Base Company Specific Settings parameter, in the Classification Rules 2 that the Residence Area is Mandatory in Section and Accounting Classification. In this case the Residence Area Code will be an item in the Accounting Classification, however not included in the name. Relevant when: Select this parameter if Residence Area is mandatory in Accounting Classification and you want to include the Residence Area Code as part of the Accounting Classification name. If more than one Residence Area is covered by an agreement, the Accounting Classifications are split by Residence Area Codes. Applicable for: P&C |
| Include Reporting Unit Code(s) in Accounting Classification name | Selected: The Accounting Classification Name is created including the Reporting Unit Codes of the agreement. A Reporting Unit Category has also to be selected in the Base Company Specific Settings/Classification Rules 1 in order to include the Code in the Accounting Classification name. Refer to the
Base Company Specific Settings section of the System Parameter Maintenance for further information. Cleared: No Reporting Unit Codes are included in the Accounting Classification name. Note that if a Mandatory Reporting Unit Category is defined in the Base Company Specific Settings/Classification Rules 1, the Accounting Classifications will be split by and including the Reporting Unit Codes of the agreement, however not included in the names. Relevant when: Select this parameter if you have defined a Reporting Unit Category and you want the Reporting Unit Codes defined for each agreement to be included in the Accounting Classification names. E.g. making it easier to select correct Accounting Classification in the Technical Worksheet. Applicable for: P&C, Life |
| Include Method Classification in Accounting Classification name | Selected: The Accounting Classification names are created including the agreement’s Type of Participation Method.Cleared: The Type of Participation Method defined in the agreement is not part of the Accounting Classification name. Note that if more than one Type of Participation Method value is defined for the agreement, the Accounting Classifications are split by these values even if this is not reflected in the Accounting Classification names. Relevant when: Select this parameter when you want the Type of Participation Method value to be part of the Accounting Classification name, e.g. making it easier to select correct Accounting Classification in the Technical Worksheet. Applicable for: P&C, Life |
| Separator | A character may be defined to distinguish between the different elements of the Accounting Classification name. Values: A character, e.g. underscore (_), dash (-), comma (,) etc. An empty field will result in no space between the different elements of an Accounting Classification. Example: Dash value =>‘Proporty-Engineering-Surplus-RU1-NOR’ Applicable for: P&C, Life |
Other Options box:
| Field | Description |
|---|---|
| Renew AC on Renewal | Selected: Upon renewal of a business (all levels), the system automatically copies its valid and active accounting classifications and Insured Period eMessaging Information along with Ruleset to the new insured period. Cleared: Upon renewal, the accounting classifications and Insured Period eMessaging Information are not copied to the new insured period. Relevant when: Accounting classifications and eMessaging Information are likely to be the same on the renewed insured period as it was on the previous insured period. Applicable for: P&C, Life |
| Restrict Invalid Accounting Classification when booking exist | Selected: User will not be allowed to remove classification element from business section if this element is used in Accounting Classification with bookings where the total is different from zero for a certain aggregation level. The system will aggregate the bookings in groups of Currency, Entry Code, Section, Amendment and Accounting Classification. In case the removal of the classification also automatically is removed from a child business then the ledger of the child business is also checked according to the above rule. Cleared: The system will only check if the involved Accounting Classification is used in Open worksheets and will not look for bookings on the ledger when a classification element is removed from the business. Relevant when: This is relevant when you want to be sure that an Accounting Classification that becomes invalid because classification elements are removed from the business does not have bookings that affect the result on the business. Applicable for: P&C, Life |
| Is AC Identifier In Use | Selected: The parameter is only selectable in combination with the system parameter Renew AC on Renewal. When creating Accounting Classification (AC) for a business, the attribute Accounting Classification Identifier, which is unique per AC per business, is added to each AC. Upon renewal of a business, the system automatically copies its AC with the belonging AC Identifier to the new insured period. Cleared: AC Identifier is not added to Accounting Classification. Relevant when: The attribute AC Identifier is used for reporting purposes. Applicable for: P&C, Life |
| Include Sub Classes of Business when Applicable | Selected: When the Accounting Classification is generated on the business the system will add a value from Sub Class of Business when a value is available for the given Class of Business. If the selected Class of Business has no sub class the Accounting Classification will be generated without a sub class. Cleared: When the Accounting Classification is generated on the business the system will only generate Accounting Classifications for Classes of Business with values also in Sub Class of Business. If the selected Class of Business has no sub class then no Accounting Classification will be generated. Relevant when: Select this parameter when the Sub Class of Business is optional as business classification and can be used in Accounting Classification (In Use: Yes, Mandatory: No, AC: Yes) AND you want to create Accounting Classifications including Sub Class of Business when it exists and without Sub Class of Business when it is not present on the business for the given Class of Business. Applicable for: P&C, Life |
| Automatic Creation of Accounting Classification | Selected: The Accounting Classifications are automatically generated when an Assumed Business is created through the Create New Business wizard or copied from another business. The parameter applies for Assumed Business. Cleared: The Accounting Classifications must be manually generated in the Create New Business wizard. Also when a Business is copied, the Accounting Classifications are not generated automatically for the new business. Relevant when: Select the parameter when you want to ensure that Accounting Classifications are generated every time a new business is created. Applicable for: P&C |