BDOS automatically generates almost all the broker dealer's general ledger entries. This capability enhances back office productivity and enables operation of the back office software by competent clerical persons. In addition, the automatic generation of general ledger entries provides another critical enhancement to your back office operations - control.
The BDOS general ledger classifies 4 types of entry. These are shown in the above form.
The above general ledger entries were automatically generated when recieving payment (CR), making an entry to adjust broker commissions (ST) - (Note: at this point no cash has moved.) - and paying the brokers (CD).
UE - the User Entry represents the only entry type that is not automatically generated by BDOS. It arises from the creation of a manual journal entry.
With other General Leger accounting systems all entries are made at the discretion of the person making the entry. If that person is having a bad day or simply gets careless, mistakes are made. When this occurs, you have lost control and it may take hours or even days to track down the errors. This does not happen with BDOS. You maintain control at all times. If there is a problem the first step in resolution is to check the user entries.
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The above form shows the BDOS procedure for closing the month. This control capability arises from the tight integration and encapsulation of all BDOS components.
We advise our clients to accept clearing fees provided in their clearing download. However, we also adhere to the concept "trust but verify". As such, BDOS calculates the clearing fee for every trade done through clearing.
The Clearing Fee Difference Report is shown above. The download clearing fee is compared to the calculated clearing fee. If a difference exists, it appears in the report. If the difference is significant, you can investigate and determine the cause. This represents one more example of the ways BDOS provides control in your back office operations.