Create and Manage Accounting Strategies teaches the user how to set up an accounting strategy for the purpose of adding the required accounting treatments to your hedges, before running the accounting workflow to book journal entries. ChathamDirect currently offers Mark to Market, Cash Flow, Net Investment and Fair Value options for designation types. There are customizable settings, which vary based on the accounting strategy template being used.

Create and Manage Accounting Strategies

From the welcome page, navigate to Accounting > Accounting Dashboard: 

On the Accounting Dashboard page, select the Accounting Strategy option on the left menu: 

 

 Next, you will click the Create New Strategy button and then choose one of the designation types: 

Depending on the designation type chosen, you will be presented with different sections for setting up the structure of the accounting strategy. The options will include the strategy name, Accounting Standard, whether there will be planned de-designation (for non MTM trades) and more:

Note: The button to proceed from screen to screen in the workflow is on the lower-right corner. Each time you click the button all changes are automatically saved as you proceed to the next screen.

 

Some of the screens will require that you select a G/L account to be used for booking entries on a period-by-period basis. For Cash Flow or Net Investment setup, where OCI balances will be held each month for amortizing release, you will also have an option to select which P&L Template should be used, as seen below:

Note: P&L Templates are covered in a related article, found here.

The final setup screen presents you with various options for accounting treatment setup, including which account to book payments and accruals as well as the capability to add hedge documentation if needed:

Once you’ve completed the setup screens, click Approve & Publish Strategy to save. You can now proceed with using your new Accounting Strategy for adding treatments to hedges.