Financial Settings

Financial settings control balance, subledger, FX, and period close.

Balance Configuration

balance:
  opening_balance:
    enabled: true
    total_assets: 10000000

  coherence_check:
    enabled: true
    tolerance: 0.01

Opening Balance

Generate coherent opening balance sheet:

balance:
  opening_balance:
    enabled: true
    total_assets: 10000000           # Total asset value

    structure:                        # Balance sheet structure
      current_assets: 0.3
      fixed_assets: 0.5
      other_assets: 0.2

      current_liabilities: 0.2
      long_term_debt: 0.3
      equity: 0.5

Balance Coherence

Verify accounting equation:

balance:
  coherence_check:
    enabled: true                    # Verify Assets = L + E
    tolerance: 0.01                  # Allowed rounding variance
    frequency: monthly               # When to check

Subledger Configuration

subledger:
  ar:
    enabled: true
    aging_buckets: [30, 60, 90, 120]

  ap:
    enabled: true
    aging_buckets: [30, 60, 90]

  fixed_assets:
    enabled: true
    depreciation_methods:
      - straight_line
      - declining_balance

  inventory:
    enabled: true
    valuation_methods:
      - fifo
      - weighted_average

Accounts Receivable

subledger:
  ar:
    enabled: true
    aging_buckets: [30, 60, 90, 120]  # Aging period boundaries

    collection:
      on_time_rate: 0.7               # % paid within terms
      write_off_rate: 0.02            # % written off

    reconciliation:
      enabled: true                   # Reconcile to GL
      control_account: "1100"         # AR control account

Accounts Payable

subledger:
  ap:
    enabled: true
    aging_buckets: [30, 60, 90]

    payment:
      discount_usage_rate: 0.3        # % taking early pay discount
      late_payment_rate: 0.1          # % paid late

    reconciliation:
      enabled: true
      control_account: "2000"         # AP control account

Fixed Assets

subledger:
  fixed_assets:
    enabled: true

    depreciation_methods:
      - method: straight_line
        weight: 0.7
      - method: declining_balance
        rate: 0.2
        weight: 0.2
      - method: units_of_production
        weight: 0.1

    disposal:
      rate: 0.05                      # Annual disposal rate
      gain_loss_account: "8000"       # Gain/loss account

    reconciliation:
      enabled: true
      control_accounts:
        asset: "1500"
        depreciation: "1510"

Inventory

subledger:
  inventory:
    enabled: true

    valuation_methods:
      - method: fifo
        weight: 0.3
      - method: weighted_average
        weight: 0.5
      - method: standard_cost
        weight: 0.2

    movements:
      receipt_weight: 0.4
      issue_weight: 0.4
      adjustment_weight: 0.1
      transfer_weight: 0.1

    reconciliation:
      enabled: true
      control_account: "1200"

FX Configuration

fx:
  enabled: true
  base_currency: USD

  currency_pairs:
    - EUR
    - GBP
    - CHF
    - JPY

  volatility: 0.01

  translation:
    method: current_rate

Exchange Rates

fx:
  enabled: true
  base_currency: USD                  # Reporting currency

  currency_pairs:                     # Currencies to generate
    - EUR
    - GBP
    - CHF

  rate_types:
    - spot                            # Daily spot rates
    - closing                         # Period closing rates
    - average                         # Period average rates

  volatility: 0.01                    # Daily volatility
  mean_reversion: 0.1                 # Ornstein-Uhlenbeck parameter

Currency Translation

fx:
  translation:
    method: current_rate              # current_rate, temporal

    rate_mapping:
      assets: closing_rate
      liabilities: closing_rate
      equity: historical_rate
      revenue: average_rate
      expense: average_rate

    cta_account: "3500"               # CTA equity account

Period Close Configuration

period_close:
  enabled: true

  monthly:
    accruals: true
    depreciation: true

  quarterly:
    intercompany_elimination: true

  annual:
    closing_entries: true
    retained_earnings: true

Monthly Close

period_close:
  monthly:
    accruals:
      enabled: true
      auto_reverse: true              # Reverse in next period
      categories:
        - expense_accrual
        - revenue_accrual
        - payroll_accrual

    depreciation:
      enabled: true
      run_date: last_day              # When to run

    reconciliation:
      enabled: true
      subledger_to_gl: true

Quarterly Close

period_close:
  quarterly:
    intercompany_elimination:
      enabled: true
      types:
        - intercompany_sales
        - intercompany_profit
        - intercompany_dividends

    currency_translation:
      enabled: true

Annual Close

period_close:
  annual:
    closing_entries:
      enabled: true
      close_revenue: true
      close_expense: true

    retained_earnings:
      enabled: true
      account: "3100"

    year_end_adjustments:
      - bad_debt_provision
      - inventory_reserve
      - bonus_accrual

Combined Example

balance:
  opening_balance:
    enabled: true
    total_assets: 50000000
  coherence_check:
    enabled: true

subledger:
  ar:
    enabled: true
    aging_buckets: [30, 60, 90, 120, 180]
  ap:
    enabled: true
    aging_buckets: [30, 60, 90]
  fixed_assets:
    enabled: true
  inventory:
    enabled: true

fx:
  enabled: true
  base_currency: USD
  currency_pairs: [EUR, GBP, CHF, JPY, CNY]
  volatility: 0.012

period_close:
  enabled: true
  monthly:
    accruals: true
    depreciation: true
  quarterly:
    intercompany_elimination: true
  annual:
    closing_entries: true
    retained_earnings: true

Financial Reporting (v0.6.0)

The financial_reporting section generates structured financial statements, management KPIs, and budgets derived from the underlying journal entries, trial balances, and period close data.

Financial Statements

financial_reporting:
  enabled: true
  generate_balance_sheet: true         # Balance sheet
  generate_income_statement: true      # Income statement / P&L
  generate_cash_flow: true             # Cash flow statement
  generate_changes_in_equity: true     # Statement of changes in equity
  comparative_periods: 1               # Number of prior-period comparatives

When enabled, the generator produces financial statements at each period close. The comparative_periods setting controls how many prior periods are included for comparative analysis. Statements are aggregated from the trial balance and subledger data, ensuring consistency with the underlying journal entries.

Management KPIs

financial_reporting:
  management_kpis:
    enabled: true
    frequency: "monthly"               # monthly or quarterly

Management KPIs include ratios and metrics computed from the generated financial data:

Budgets

financial_reporting:
  budgets:
    enabled: true
    revenue_growth_rate: 0.05          # 5% expected growth
    expense_inflation_rate: 0.03       # 3% cost inflation
    variance_noise: 0.10               # 10% random noise on actuals vs budget

Budget generation creates a budget line for each GL account based on prior-period actuals, adjusted by the configured growth and inflation rates. The variance_noise parameter controls the spread between budget and actual figures, producing realistic budget-to-actual variance reports.

See Also

• Companies
• Document Flows
• Period Close Engine