Central remittance (profit remittance)

• Profit Sell Down (monthly) — the monthly adjustment crystallising a book's profit. Two deals are booked: one in the trading book, one in a corresponding global book. Both are reversed when P&L is run, to avoid double-counting the crystallised profit (once in the book, once for funding purposes).
• Sweep to the Central Remittance Book (periodic — quarterly, sometimes annual, business-dependent) — the Central Remittance Book's accumulated balance determines how much cash to actually send to Group. An offsetting trade zeroes the book back out, and settlement pays the cash to Group.
• Year End Clear Down (annual) — a related but distinct synthetic reset; see "Relationship to cleardown" below.

Step 1: PROFIT SELL DOWN (monthly, per book)
  Trading Book (P&L) ──┬──► deal booked in the Trading Book
                        └──► mirror deal booked in a Global Book
  (both reversed when P&L is run, to avoid double-counting)

Step 2: ACCUMULATE IN THE CENTRAL REMITTANCE BOOK
  Global Book balances ──► CENTRAL REMITTANCE BOOK
                            (a book explicitly designated
                             "the remittance book")

Step 3: REMIT TO GROUP (periodic — quarterly/annual, business-dependent)
  Central Remittance Book balance ──► offsetting trade zeroes the book
                                   ──► real settlement pays cash to Group
  Both legs dealt against the internal PROFIT REMITTANCE COUNTERPARTY,
  booked via the PROFIT REMITTANCE TOOL.

Central Finance runs this process using a dedicated tool, which lets a user book remittance trades and enter the amount against each book, choose the trade date and delivery date of the generated trades, and undo an existing set of Profit Remittance trades as a unit.

Profit Remittance is a System Event (alongside Funding Runs and Brokerage Payouts): it groups all the trades from one remittance run so users can undo/redo the whole event without manipulating individual deals, with a dedicated, formally reversible booking reason ("Undo Profit Remittance").

A single book is explicitly designated the remittance book — the Central Remittance Book. This is a distinct book_purpose_type value in its own right, structurally similar to Is Funding Book=/=Is Sweepable but not combinable with the Central Sweep Book role (see Sweep, "Sweep target and remittance target are not combinable"). All remittance cash trades are dealt against a dedicated internal counterparty, the Profit Remittance Counterparty, never against any external or trading counterparty.

Remittance trades are balance-sheet-only: they change cash/funding balances (included in cash reconciliation and EOD/next-day funding), but are deliberately excluded from P&L — they do not appear in FO P&L, BO P&L, or the ledger reporting file. This exclusion is essential: since a remittance trade doesn't represent a new economic event (it's moving already-recognised profit), letting it hit P&L again would distort that day's reported P&L for the book.

Note: source material is not fully consistent on whether remittance trades "feed settlements" — one description states they are executed and sent to settlement (consistent with being real, settleable cash trades), while a separate summary states Profit Remittance does "not feed settlements." Treat the former (real, settled cash trade) as the primary description, and the latter as possibly referring to the earlier, synthetic Profit Sell Down/Cleardown leg rather than the final remittance trade itself.

Easy to conflate with EOM Cleardown and Year End Clear Down, but they are distinct:

Cleardown is the accounting reset that keeps period-to-date P&L honest; Profit Remittance is the actual cash movement that eventually follows it up to Group. They are related in purpose (both exist to move crystallised profit out of trading books) but are executed, timed, and reconciled independently.