Financial hierarchy

(Section: Operations and Management)

1) Purpose

• unified method of accounting and consolidation by regions/currencies;
• Predictable P2P/O2C/R2R/Tax processes
• authority control and SoD/compliance compliance;
• closing speed and auditability.

2) Entity taxonomy

Legal Entities: residence, licenses, currencies, VAT/taxes, bank accounts.
Business units (BU/Tenant): products/channels (casino, sportsbook, live, payments).

• Revenue (RC): content providers, payment services, extension marketplace.
• Costs (CC): platform/SRE, marketing, compliance, support.
• Investment objects (САРЕХ/Projects): Data Platform, CDN/edge, geo-output.
• Partners: providers, PSP/KYC, affiliates, aggregators.
• Clients: operators/tenants, end users (off-ledger aggregates).
• Accounts/wallets: settlement, escrow, clearing, trusted (custody).

3) Chart of Accounts (CoA) and Measurements

1. Assets (money, player deposits, accounts receivable, escrow, prepayments).

2. Liabilities (player balances, deferred earnings/bonuses, creditor, taxes payable).

3. Capital.

4. Revenues (GGR/Rischeir, Commissions, Subscription/API Rates).

5. Cost (content royalties, processing, hosting/egress).

6. Operating expenses (marketing, salaries, compliance, audit, legal).

Required dimensions (dimensions): 'legal _ entity', 'region', 'currency', 'product', 'tenant', 'rc/cc', 'project', 'partner', 'contract _ version', 'tax _ rule _ version', 'fx _ version'.

4) Ledger stack

• Payments (authorizations, clearing, returns, chargeback).
• Wallets/Players (balances, deposits, conclusions, bonus obligations).
• Content/Revenue Share (rounds/providers, GGR/NetWin, royalties).
• Affiliates (conversions, attributions, accruals).
• General Ledger (GL) - periodic postings from subledgers via ETL/Outbox → Posting with completeness/duplication control.
• Consolidation: intercompany eliminations, transfer pricing, transfer to presentation currency (Group currency).
• Reporting Cubes: Management Showcase (P & L/BS/CF by Measurement).

5) Hierarchy of currencies and calendars

Functional currency at the legal entity level, Group currency for reporting.
FX policy: source of courses, TWAP/median, 'fx _ version' in each transaction.
Calendars: financial (4-4-5/ISO), tax (by country), operational (clearing slices).

6) Authority Matrix

Signing Limits: by legal entity/account/currency; two-signature/M-of-N for payouts/escrow.
Spend limits: OPEX/CAPEX by CC/projects (month/quarter), deviation rules.
Revenue contracts: thresholds for discounts/rebates by role.

SoD: "creates payment" ≠ "approves"; "agrees the contract" ≠ "signs."

7) Treasury and Liquidity

Hierarchy of accounts: operating, clearing, escrow, taxes, payroll.
Cash Pooling: physical/notational by band; intragroup loan limits.
Investments/reserves: liquidity campaign policies, covenants.
DDS forecast (13-week): incoming by products/regions, outgoing (royalties, taxes, capex).

8) Intercompany

Services within the group: hosting/platform/licenses as charge-out (cost + markup).
Eliminations: income/expenses within the group, loans/interest.
Transfer Pricing: policy and range of market markups; country-level documentation.
IC reconciliations: monthly settlements with receipts/signatures.

9) Taxes and regulatory

Indirect (VAT/GST): modes on/off, MOSS/OSS, place of service.
Direct: income tax rate for legal entities, R&D benefits.
Gaming/special fees: bets by segment (casino/sports), reporting.
Certificates/RNG/licenses: artifact storage requirements.
Tax registers: comparison of subledgers with tax returns.

10) Revenue Recognition

Casino (GGR/Net Gaming Revenue): moment of recognition - outcome of the round/closing of the bet.
Commissions/subscription/API: upon provision/subscription; deferred income → write-off.
Promos/bonuses: as revenue reduction or marketing - by policy and GAAP/IFRS.
Breakage/deferred liabilities: unused bonuses/balances.

11) Closing processes and calendars

O2C (Order-to-Cash): quote → invoice → receipt → payment distribution.

P2P (Procure-to-Pay) PO → → → Invoice Receipt → Payment

R2R (Record-to-Report): posting from subledgers → reconciliation → adjustments → reporting.
Tax: calculation/reconciliation/filing of declarations for legal entities.
Close Calendar: D + 1 - blocking subledgers; D + 3 - IC-reconciliations; D + 5 - preliminary P & L/BS; D + 7 - managerial; D + 10 - group reports.

12) Control, audit and provability

Policies-as-code: transaction templates, limits, approval routes (in Git/CI).
Receipts: signatures of settlements (affiliates, providers, payments), Merkle-sections of registers.
Register of CoA changes/signature rights: WORM logs, DSSE.
Reconciliations: bank/wallets, IC, subledzhery→GL, GL→otchetnost.
External/Internal Audit - access to artifacts, sample control.

13) Data model (simplified)

`entity` `{id, country, licenses[], functional_currency}`

`bu` `{id, entity_id, product, tenant}`

`account` `{coa_code, name, type, parent_code}`

`dimension` `{name -> values}`

`subledger_entry` `{id, source, occurred_at, currency, amount, fx_version, dims{}, receipt_hash, signature}`

`gl_entry` `{id, posted_at, dr_account, cr_account, amount, currency, dims{}, source_ids[]}`

`ic_agreement` `{entities[], markup, terms}`

`authority_rule` `{scope, limit, m_of_n, ttl}`

`bank_account` `{entity_id, iban, currency, signers[], limits}`

`tax_rule` `{jurisdiction, type, rate, effective_from, version}`

14) RACI (key areas)

15) Metrics and SLO

Close Time: D + 7 managerial, D + 10 group (compliance goal ≥ 95%).
Reconciliation Rate: ≥ 99. 9% of subledgers closed with no discrepancies> X.
IC Match: 100% IC pairs closed to D + 5; open - <0. 5% of turnover.
Cash Forecast Accuracy (4-нед): MAPE ≤ 10–15%.

Late Postings: < 0. 1% after "soft close."

Audit artifacts: bill completeness ≥ 99. 99% for critical flows.

16) Dashboards

Group/Legal entities: P & L/BS/CF, currency effect, taxes, covenants.
Operations: GGR/NetWin by product, royalty, processing/egress, LTV/CAC.
Treasury: cash out/cash in, aging accounts receivable/payables, account limits, counterparty risk.
Closing: status of reconciliations, IC-matrix, posting errors, SLA commands.
Control: limit triggering, SoD violations, signature logs.

17) Risks and anti-patterns

Duplicate CoA/measurements between legal entities → irreducibility of reporting.
Absence of IC process → "hangmen" and manual adjustments at the end of the period.
Unlimited Signing Rights/M-out-N → Operational/Fraud Risk.
No 'fx _ version '/' tax _ rule _ version' → recalculation/return errors.
Manual postings without artifacts → audit resiliency.
Mixing obligations of players and own funds → regulatory violations.

18) Implementation checklist

1. Normalize CoA and measurement library; commit to repository.
2. Define entity hierarchy and BU/tenant relationship, RC/CCs.
3. Set up subledgers (payments/wallets/content/affiliates) and Posting flow in GL.
4. Enter FX/Tax versions and consolidation/translation policy.
5. Describe the Authority Matrix, SoD and M-of-N for payouts/escrow.
6. Organize Treasury: card of accounts, cash pooling, 13-week forecast.
7. Start IC processes and TP policy; monthly reconciliations with receipts.
8. Fix Close Calendar; automate reconciliations and alerts.
9. Enable policy-as-code and WORM change logs (CoA/Limits/Signatures).
10. Build dashboards: Close, Treasury, IC, Revenue, Control.

19) Specificity for iGaming/fintech

Players/wallets: balance and bonus obligations - separate liability accounts.
GGR/Royalty: monthly reconciliations with content providers on signed reports.
Payments/Chargeback: provision for returns, accounting of PSP fees by channels/ASN.
Affiliates: attribution through signed webhooks; escrow for the period of the dispute.
Licenses/regulators: individual legal entities/accounts, local reporting and storage of artifacts.

20) FAQ

Do we need different CoA by country?
Better is a single group CoA + local mappings (local accounts → group).

Where to store courses and tax versions?
In a separate reference zone with versioning; reference ('fx _ version', 'tax _ rule _ version') on each transaction.

How to speed up the closure?
Auto-checks, "soft close," blocking of D + 1 subledgers, standardized adjustments, "no manual posts outside templates" policy.

How to control payments?
M-of-N signature, payment/day/account limits, role segregation, bank receipts and GL matching.

Summary: The financial hierarchy is the skeleton of a managed company: normalized CoA and dimensions, unified subledgers and consolidation, clear authorities and limits, FX/Tax version discipline, and provable artifacts. Build it right once and get fast closure, transparent control and scalability across products, regions and partners.