Holidays can significantly affect the timing of your deal cashflows. If you enter into a deal that has a start, maturity, or settlement date that falls on a holiday, your company's deal cashflow could be delayed by one or more days because banks, brokerages, or counterparty offices are closed. To prevent your company from dealing with delayed cashflows, use the Currency Holiday Rules window to define the holiday dates for each of your authorized currencies.
Once you define your currency holidays, Treasury automatically checks the start, maturity, and settlement dates for each deal against the holiday dates for each currency in the deal. If any deal dates fall on a holiday, you receive a warning, which you can dismiss. The warning does not prevent you from entering the deal, but it does remind you that the deal date can impact your company's cashflow.
In Treasury, you can define three types of holidays:
Constant holidays: Holidays that occur on a fixed date. For example, in countries using USD, New Year's Day is always on January 1.
Rule holidays: Holidays that change from year to year based on a rule. For example, in countries using USD, Labor Day is always the first Monday in September.
One off holidays: Holidays that occur one time only. For example, in countries using GBP, the government may declare a holiday to celebrate the coronation of a new king or queen.
Once you define a constant or rule holiday, the date of that holiday is automatically calculated five years into the future from the current system date. For example, if you define a constant holiday for January 1, 2012, a holiday is automatically created for each January 1 between 2012 and 2017. If you want to calculate the holiday more or less than five years into the future, in the Calculated Date field you can enter another date to which you want the holiday calculated (for example, January 1, 2015). The holiday dates are calculated up to the date you specify.
In Treasury, Saturday and Sunday are considered non-business days. If a holiday falls on a Saturday or a Sunday, the holiday automatically moves to the following Monday. You must edit the calculated holiday dates to accommodate your specific workday adjustments. For example, if you want to move a holiday to the preceding Friday instead of the following Monday, you must edit the date of the calculated holiday accordingly.
Some rule-based holidays, such as those based on the phases of the moon, cannot be calculated and must be defined as a unique, one off, holidays.
Use the (General Ledger) Transaction Calendar window to define any day of the week as a non-business day. For more information on defining a transaction calendar, see Defining Transaction Calendars.
Once you define a GL calendar, you can import the GL calendar into Treasury. Importing the GL calendar lets you use the holidays that have already been defined in General Ledger so you don't have to define the holidays again in Treasury.
Navigate to the Currency Details window.
Assign the GL calendar to a currency. Treasury uses the weekend definition of the GL calendar instead of assuming Saturday/Sunday weekend days.
Once you assign a GL calendar to a currency, you have the option to import holidays from the GL calendar associated with that currency into the Holiday Dates window. This option is only available if a GL calendar is assigned to the currency.
Navigate to the Currency Holiday Rules window.
Select the currency that you want to import holidays into.
Choose the Review Actual Holiday Dates button.
The Holiday Dates window appears.
Choose the Import GL Holidays button.
Use the Currency Holiday Rules window to define the holiday rules for each of your authorized currencies.
In the Currency Holiday Rules window, choose a currency for the holiday that you want to define.
In the Description field, enter a description for the holiday.
In the Type field, choose a holiday type and do the following:
If you choose the Constant holiday type, in the Date field enter a holiday date and in the Month field choose a month. If the holiday is observed for more than one day a year, in the Extra Days field enter the number of additional days that the holiday is observed.
If you choose the Rule holiday type, do the following:
In the Month field, choose the month for the holiday.
In the Num field, enter the week of the month for the holiday. For example, if the holiday occurs in the third week of the month, enter 3.
In the Day field, enter the day of the week that the holiday falls on.
In the Extra Days field, enter the number of additional days, if any, that the holiday is observed.
If the holiday occurs on a weekend, but is observed on a business day, enter the day of the week that the holiday is observed in the Wkd Adj field.
If you choose the One-Off holiday type, enter the date, month, and year of the holiday. If the holiday is observed for more than one day, in the Extra Days field enter the number of additional days that the holiday is observed.
If you want to calculate the future date of the holiday to a specific date, in the Calculated Date field enter the date. If you do not enter a date, Treasury automatically calculates the holiday date five years into the future from the current system date.
Review the list of calculated dates for the holiday by choosing the Review Actual Holiday Dates button. The Holiday Dates window appears.
If you want to adjust a holiday date (for example, to move a holiday from a Monday to the preceding Friday), in the Date field adjust the holiday dates as needed.
If you want to import holidays from the GL calendar assigned to that currency into the Holiday Dates window, choose the Import GL Holidays button. For more information, see GL calendar.
Save your work.