Glossary
Glossary
Accounting, financial regulation and technology terms that come up in our projects.
- Annex 15AI
- Report of the SBS (Superintendencia de Banca, Seguros y AFP, Peru’s banking, insurance and pension fund regulator) with a financial institution’s daily liquidity position: liquid assets against short-term liabilities, in local and foreign currency. It is prepared from core system and general ledger balances, so it is often the first report an institution decides to generate from the system instead of assembling it in spreadsheets.
- Annex 15AII
- SBS report with the liquidity coverage ratio (LCR): the relationship between high-quality liquid assets and the net cash outflows expected over a short horizon under a stress scenario. It requires classifying assets and liabilities by category and applying factors set by the regulation, which makes documented calculation rules necessary.
- Annexes 17A and 17B
- SBS reports related to the Deposit Insurance Fund: they detail the obligations to the public covered by the fund and serve as the basis for the premiums the institution contributes. They require classifying deposits by type of holder and product, with information that normally lives in the core system.
- Reserve requirement (encaje)
- The portion of obligations to the public that a financial institution must hold as a reserve, in vault cash or in deposits at the BCRP (Banco Central de Reserva del Perú, the central bank). It is calculated on total obligations subject to the requirement, by currency, and monitored over the computation period.
- BCRP reserve requirement reports
- The set of reports institutions file with the BCRP to show compliance with the reserve requirement: reports 1 to 4 detail the obligations subject to the requirement and the reserve funds by currency; report 5 covers the advance reserve requirement. They are built from daily balances of liabilities and cash.
- SIRE
- Peru’s integrated electronic records system (Sistema Integrado de Registros Electrónicos), run by the tax administration, which brings together the electronic sales and purchase records. Companies must review the proposal generated by the administration, complete or adjust it and file it within the deadlines, which requires reconciling invoices with the accounting records.
- Form A
- Statement of financial position in the format the SBS requires from supervised institutions: assets, liabilities and equity classified according to the financial system’s chart of accounts. It is built from the general ledger with a defined mapping between ledger accounts and format lines.
- Forms B and B1
- Income statement (Form B) and statement of income and other comprehensive income (Form B1) in the SBS formats. They present financial income and expenses, provisions, administrative expenses and the result for the period, with the same classification criteria as Form A.
- Form C
- Statement of cash flows in the SBS format: cash movements from operating, investing and financing activities during the period. It starts from the result and from balance sheet variations, so it depends on Forms A and B being balanced.
- Form D
- Statement of changes in equity in the SBS format: movements in capital, reserves, retained earnings and other equity components during the period, with the reconciliation between opening and closing balances.
- Bank reconciliation
- Comparison between the movements recorded in the accounting records and those on the bank statement, to identify open items: uncashed checks, deposits in transit, unrecorded charges. Automating it means defining matching rules and documenting the items that do not match.
- Operational-to-accounting reconciliation
- Comparison between the balances of operational systems (loan, deposit or policy cores) and the general ledger balances, at the level of detail at which both can be compared: product, contract or transaction. Differences point to unrecorded events, incomplete accounting rules or different cut-off dates.
- Provision
- Accounting recognition of an expected loss or of an obligation whose amount or timing is uncertain, for example credit risk provisions at a financial institution. Its calculation depends on the portfolio classification and on factors set by the regulation, and its posting must be traceable to the originating transaction.
- Accounting close
- Periodic process, usually monthly, in which the records of a period are completed, adjustments and reconciliations are made, and financial statements are issued. Its duration depends on how many entries are generated automatically and on how many differences are found at the end rather than during the month.
- Journal entry
- Record of a transaction in the general ledger, with at least one debit and one credit for the same amount. At a financial institution most entries are generated from events in the operational systems (a disbursement, a payment, a premium) through rules that determine which accounts are affected.
- Core system
- Central system that runs an institution’s main operations: loans, deposits and accounts at a bank; policies and claims at an insurer. It is the source of most of the information that reaches accounting and regulatory reports, so the integrations with it determine the quality of both.
- Integration
- Connection between two systems so they exchange information without manual intervention, for example between the core system and accounting, or between a sales system and the ERP. It is defined by the data exchanged, the frequency, the transformation rules and the controls that verify nothing is lost along the way.
- ERP
- Enterprise resource planning system: a set of integrated modules for accounting, purchasing, sales, inventory, assets and human resources that share one database. Oracle ERP Cloud is an example of an ERP offered as a cloud service.
- CRM
- Customer relationship management system: it records contacts, opportunities, sales and after-sales service. Integrated with the ERP, it lets a sale closed in the CRM automatically generate invoicing and the accounting entry.
- Power Platform
- Microsoft’s set of tools for building applications and automations with little code: Power Apps (applications), Power Automate (flows), Power BI (dashboards) and Dataverse (data). It relies on the Microsoft 365 licenses many companies already have, which lowers the cost of getting started.
- Dataverse
- Power Platform’s cloud database, with tables, relationships, permissions and business rules. It lets several applications and flows share the same information with security managed from Microsoft 365, instead of keeping data in scattered spreadsheets.
- VBA
- Visual Basic for Applications: the programming language included in Microsoft Office that automates tasks in Excel and other applications through macros. It is common in financial models and reports; its limit appears when data volume, the number of users or the need for version control exceed what a workbook can handle.
- Low-code
- A development approach that builds applications with visual components and little programming, such as Power Platform. It reduces the time and cost of solutions with a bounded scope; for complex integrations or large volumes it is usually combined with traditional development.
- Oracle Accounting Hub
- Oracle Cloud service that receives events from operational systems (a disbursement, a policy, a sale) and turns them into journal entries through rules defined by product and event. It centralizes the accounting of multiple systems in one rules engine, with traceability from the entry back to the event that originated it.
- Profitability and Cost Management
- Oracle EPM Cloud module that allocates revenue, costs and capital to dimensions such as product, customer, channel or contract through allocation rules. It makes it possible to calculate profitability by segment on the same accounting structure the general ledger uses, so results can be traced back to the source data.
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