Subsystem Definition {FCSM-2}

When financial transactions are processed in a subsystem transactions are allocated to a financial year and cycle for reporting and reconciliation purposes. The year and cycle into which transactions are currently being written is displayed in this option. The financial year and cycle of the various subsystems are maintained through the posting programs which increments the cycle. Financial subsystem are pre-defined in the system.

The option is mainly used to query the current year and cycle of a subsystem although the retention period of data in the subsystem can also be maintained from this option.

Fields in the option:

Panel block 1: Block Description

Field	Type & Length	Description
Code	A2	Subsystem codes are system defined and no records can be inserted or deleted.
Name	A30	Displays the subsystem name.
Retain Transactions	N2	Indicate in cycles how long transactions for the specific subsystem should be retained. A maximum of 36 cycles and minimum of 14 cycles are allowed. The user should note that the minimum cycles for the Payroll System is 24 cycles. If less than 24 cycles are specified, for the Payroll, the subsystem will automatically default to 24 cycles.
Financial Year/Cycle	N4/N2	The current financial year and cycle of the subsystem. This fields are not updateable. The financial year and cycle is updated when Period end and /or Post to General Ledger with the parameter increment cycle are executed.
VAT / GST Default	A1	The system allows for a tax default on sub system level for VAT/GST purposes. Should all the activities in a subsystem relate to a specific type of supply, for example, under SA VAT legislation, supply of educational service are exempted from VAT, setting the default to E- Exempted, the supply indicator of Exempted and a rate of 0.00 will default when the user process any transaction in the subsystem. Institutions should be cautious when setting the default to non-taxable where the entity is registered for tax. It is suggested that Institutions seek advice form a qualified tax practitioner in this regard. The following tax defaults are available, Standard Rate, Exempted, Zero Rated, Non-taxable and Cost Centre. Valid values are: S - Standard Rated E - Exempted Z - Zero Rated N - Non-taxable C- Cost Centre default - The vat code as defined on the cost centre will be used as a default.

Example:

Processing Rules
Open Cycles	For reporting and reconciliation purposes transaction are grouped together based on the financial period to which the transaction relates. Open cycle’s supports the processing of transactions into the current and future financial cycles deriving transactions cycle’s according to the document or reference date. This is particularly useful at and after month ends where all transactions relating to the old month have not yet been processed and there is a need to process the new month transactions. The Open Cycle concept is driven by the transaction type of a transaction where the Open Cycle indicator on the transaction type determines if the logic is applied. If the “Use Open Cycle” sod is set to yes and the indicator on the transaction type definition is set to yes the cycle is derived from the document / reference date and provided that the derived cycle is equal or greater than the system cycle for the subsystem {FCSM-2} the derived cycle is used as the transaction cycle. If the derived cycle is less than the system cycle for the subsystem, the system cycle is used as the transaction cycle. Once the system cycle has been incremented the old cycle is closed and the current and future cycle in the year is open for transaction processing provided that open cycles are used.
New Install	When a new client is installed the fields year, cycle, retention period and tax default are null and should be updated to the appropriate values.

Processing

Rules

Open Cycles

For reporting and reconciliation purposes transaction are grouped together based on the financial period to which the transaction relates. Open cycle’s supports the processing of transactions into the current and future financial cycles deriving transactions cycle’s according to the document or reference date. This is particularly useful at and after month ends where all transactions relating to the old month have not yet been processed and there is a need to process the new month transactions.

The Open Cycle concept is driven by the transaction type of a transaction where the Open Cycle indicator on the transaction type determines if the logic is applied. If the “Use Open Cycle” sod is set to yes and the indicator on the transaction type definition is set to yes the cycle is derived from the document / reference date and provided that the derived cycle is equal or greater than the system cycle for the subsystem {FCSM-2} the derived cycle is used as the transaction cycle. If the derived cycle is less than the system cycle for the subsystem, the system cycle is used as the transaction cycle.

Once the system cycle has been incremented the old cycle is closed and the current and future cycle in the year is open for transaction processing provided that open cycles are used.

New Install

When a new client is installed the fields year, cycle, retention period and tax default are null and should be updated to the appropriate values.

Date	System Version	By Whom	Job	Description
27-Sep-2006	v01.0.0.0	Amanda Nell	t133486	New manual format.
02-Feb-2009	v01.0.0.1	Ernie van den Berg	t155140	Review the manual.
24-Nov-2011	v02.0.0.0	Marchand Hildebrand	t178236	Apply to Int 2
25-May-2012	v02.0.0.1	Marchand Hildebrand	t182907	Remove number of approvals from the manual
16-Oct-2014	v03.0.0.0	Marchand Hildebrand	t195346	Add Open Cycles
23-Feb-2016	v04.0.0.0	Matete Masite	t209187	Updated the image and changed