10. Annexure B - Accounting Entries and Advices

This chapter contains the following sections:

10.1 Accounting Entries for Deposits

This section contains details of the suggested accounting entries that can be set up, for the DEPOSIT module of Oracle FLEXCUBE. The details of the suggested accounting entries are listed event wise.

10.2 Deposits Events

The following is an exhaustive list of events that can take place during the lifecycle of a deposit contract. In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below.

Event Code Event Description Remarks
BOOK Contingent entries are passed at the time of Booking a future valued contract. This corresponds to Event - Booking. If a contract with value date as the system date or with a back value date is input these entries are not passed. All Types
INIT The actual take down entries passed on the value date of the contract correspond to Initiation. All Types
LIQD Liquidation of contract/schedules. All Types
ACCR Accrual of various components for a contract All Types
ROLL Rollover of Contract All Types
STCH Status Change All Types
NOTC Billing of Notice All Types
CAMD Contract Amendment All Types
VAMB Value Dated Amendment Booking All Types
VAMI Value Dated Amendment Initiation All Types
REVN Rate Revision  
REAS Reassign User  
RESD Reversal of Residual Accrual
In case the status of a contract changes to Non Accrual basis, all the accrued amounts are reversed using this Event Code.		  
REVC Contract Reversal  
REVP Reversal of Payment  
SPRO Provisioning  
SPWB Write Back  

10.3 Amount Tags

The amount tags listed below are hard-coded in Oracle FLEXCUBE.

In addition to these you can define amount tags as per your requirements for interest and charges that will be attached to the product.

Amount Tag Description
COMMUTIL_­DECR Commitment Amount Reinstated
COMMUTIL_INCR Commitment amount Utilized
INT_DISC_ADJ Discounted Interest Adjusted
PRINCIPAL Principal Amount
PRINCIPAL_ADDL Additional Principal
PRINCIPAL_DECR Decrease in principal on amendment
PRINCIPAL_FWD Forward takedown amount
PRINCIPAL_INCR Increase in principal on amendment
PRINCIPAL_LIQD Principal Amount Liquidated
PRINCIPAL_ROLL Principal amount rolled over
PRINCIPAL_X­FWD Principal Amount Reclassified
PRINCIPAL_XREV Principal Amount Unclassified
PRO_AMT Provision Amount
ROLLOVER_AMT Rollover Amount
WB_AMT Write Back Amount

10.4 Accounting Roles

In this section we have provided a list of sample accounting roles.

Accounting Role Description Role Type
LIABGL Liability GL for Deposits Liability
INTEXP Interest Expense
RFEEINC Roll Fees Income
FWDLIABGL GL for future dated deposits Contingent Asset
FWDLIABOFF Offset for Future dated deposits Contingent Asset
PENPRCLSINC Penalty on Preclosure Contingent Asset
INTERESTPAY Interest Payable Contingent Liabil­ity
INTERESTEXP Interest on Deposits Expense
INTERESTAQP Acquired Interest Payable Liability
EXDPAY   Contingent Liabil­ity
CHGINC Charges on Income Income
FATAX1_EXP Tax expense role for FATAX1 Expense
FRTAXS_PAY Tax payable role for FRTAXS Liability
INTPIA Fixed rate Interest Asset
Accounting Role Description Role Type
VAMBFEESINC Value dated Amendment Booking Fees Income
BFEEEXP Book Fees Income

Note

In the accounting roles listed above the prefixes INT (Interest), PEN (Penalty), CHG (Charge) are ICCF components. The suffixes stand for:

10.5 Event-wise Accounting Entries and Advices

This section contains the following topics:

10.5.1 Accounting Entries and Advices

Suffix Description
AQP Acquired interest paya­ble
EXP Expense
INC Income
PIA Payable in advance
PAY Payable

In the subsequent sections we have defined suggested accounting entries and advices for each of the events in the life-cycle of deposit. Samples of accounting entries, advices, and events have been given for four different types of interest schedules for deposits:

Note

Also note that some of the Amount Tag’s linked to Accounting roles are user defined.

10.5.2 Product Type-Deposit, Bearing, Normal

The preferences set for this product are as follows:

BOOK: Booking

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
FWDLIABOFF PRINCI­PAL_FWD Debit
FWDLIABGL PRINCI­PAL_FWD Credit
CUSTOMER CHG1 Debit
CHGINC CHG1 Credit

 

Advices

Advice Name Description
PAYMENT_MESSAGE Payment Mes­sage
DEAL_SLIP Contract Advice

 

INIT: Initiation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
CUSTOMER PRINCIPAL Debit
LIABGL PRINCIPAL Credit
FWDLIABGL PRINCI­PAL_FWD Debit
FWDLIABOFF PRINCI­PAL_FWD Credit
CHGINC CHG1 Credit
CUSTOMER CHG1 Debit

 

Advices

Advice Name Description
CONT_ADV Contract Advice
PAYMENT_MESSAGE Payment Message
COD Certificate Of Deposit

LIQD: Liquidation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
CUSTOMER PRINCI­PAL_LIQD Credit
LIABGL PRINCI­PAL_LIQD Debit
Accounting Role Amount Tag Dr./Cr. Indicator
CUSTOMER EXD_LIQD Credit
EXDPAY EXD_LIQD Debit
INTERESTPAY INT_LIQD Debit
CUSTOMER INT_LIQD Credit

 

Advices

Advice Name Description
PAYMENT_MESSAGE Payment Mes­sage
BILNOTC Billing Notice

 

ACCR: Accrual

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
EXDEXP EXD_ACCR Debit
EXDPAY EXD_ACCR Credit
INTEXP INT_ACCR Debit
INTERESTPAY INT_ACCR Credit

 

Additional Accounting Entries for Negative Interest allowed Product

Accounting Role Amount Tag Dr./Cr. Indicator
NegativeInterest CompREC Negative Interest Comp_ACCR Debit
NegativeInterest CompINC Negative Interest Comp_ACCR Credit

 

Advices

No advices allowed for this event. LIQD: Liquidation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
CUSTOMER PRINCI­PAL_LIQD Credit
LIABGL PRINCI­PAL_LIQD Debit
CHGINC CHG3 Credit
CUSTOMER CHG3 Debit
EXDPAY EXD_LIQD Debit
CUSTOMER EXD_LIQD Credit
LIABGL EXD_ROLL Credit
EXDPAY EXD_ROLL Debit
CUSTOMER INT_LIQD Credit
INTERESTPAY INT_LIQD Debit
INTERESTPAY INT_ROLL Debit
LIABGL INT_ROLL Credit

 

Additional Accounting Entries for Negative Interest allowed Product

Accounting Role Amount Tag Dr./Cr. Indicator
Customer Negative Interest Comp_LIQD Debit
Negative Interest CompREC Negative Interest Comp_LIQD Credit

 

 

Advices

Advice Name Description
ROLL_ADV Rollover Advice

 

CAMD: Contract Amendment

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
CHGINC CHG2 Credit
CUSTOMER CHG2 Debit

 

Advices

Advice Name Description
AMDADV Amendment Notice

ROLL: Rollover

 

Additional Accounting Entries for Negative Interest allowed Product

Accounting Role Amount Tag Dr./Cr. Indicator
ROLL_WASH Negative InterestComp_ROLL Debit
Negative Interest CompREC Negative InterestComp_ROLL Credit

 

10.5.3 Product Type-Deposit, Bearing, Amortized

The preferences set for this product are as follows:

BOOK: Booking

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
FWDLIABGL PRINCI­PAL_FWD Credit
FWDLIABOFF PRINCI­PAL_FWD Debit

 

Advices

Advice Name Description
PAYMENT_MESSAGE Payment Mes­sage

 

INIT: Initiation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
CUSTOMER PRINCIPAL Debit
LIABGL PRINCIPAL Credit
FWDLIABGL PRINCI­PAL_FWD Debit
FWDLIABOFF PRINCI­PAL_FWD Credit

 

Advices

Advice Name Description
CONT_ADV Contract Advice
PAYMENT_MESSAGE Payment Message
COD Certificate Of Deposit

 

LIQD: Liquidation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
INTERESTPAY INT_LIQD Debit
CUSTOMER INT_LIQD Credit
FATAX1_PAY FATAX1_AMT Credit
CUSTOMER FATAX1_AMT Debit
CUSTOMER PRINCI­PAL_LIQD Credit
LIABGL PRINCI­PAL_LIQD Debit

 

Advices

Advice Name Description
PAYMENT_MESSAGE Payment Mes­sage
BILNOTC Billing Notice

 

ACCR: Accrual

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
INTEXP INT_ACCR Debit
INTERESTPAY INT_ACCR Credit

 

Advices

No advices allowed for this event

STCH: Status Change

Accounting Entries

Nil

Advices

Nil

ROLL: ROLLOVER

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
CUSTOMER INT_LIQD Credit
INTERESTPAY INT_LIQD Debit
INTERESTPAY INT_ROLL Debit
LIABGL INT_ROLL Credit
CUSTOMER PRINCI­PAL_LIQD Credit
LIABGL PRINCI­PAL_LIQD Debit

 

Advices

Advice Name Description
ROLL_ADV Rollover Advice

 

10.5.4 Product Type-Deposit, Bearing, Capitalized

The preferences set for this product are as follows:

BOOK: Booking

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
BFEEEXP LIQD Debit
CUSTOMER LIQD Credit
FWDLIABGL PRINCI­PAL_FWD Credit
FWDLIABOFF PRINCI­PAL_FWD Debit

 

Advices

Advice Name Description
CONT_ADV Contract Advice
DEAL_SLIP Contract Advice
PAYMENT_MESSAGE Payment Mes­sage

 

INIT: Initiation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
INTERESTAQP INTER­EST_ACQD Debit
INTERESTPAY INTER­EST_ACQD Credit
CUSTOMER PRINCIPAL Debit
LIABGL PRINCIPAL Credit
FWDLIABGL PRINCIPAL_FWD Debit
FWDLIABOFF PRINCIPAL_FWD Credit

 

Advices

Advice Name Description
DEAL_SLIP Contract Advice
CONT_ADV Contract Advice
PAYMENT_MESSAGE Payment Mes­sage

 

LIQD: Liquidation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
FRTAXC_PAY FRTAXC_AMT Credit
CUSTOMER FRTAXC_AMT Debit
INTERESTPAY INT_ADJ Credit
CUSTOMER INT_ADJ Debit
LIABGL INT_CAP Credit
INTERESTPAY INT_CAP Debit
INTERESTPAY INT_LIQD Debit
CUSTOMER INT_LIQD Credit
CUSTOMER PENPRCLS Debit
PENPRCLSINC PENPRCLS Credit
CUSTOMER PRINCI­PAL_LIQD Credit
LIABGL PRINCI­PAL_LIQD Debit

 

Advices

Advice Name Description
CAP Capitalization Advice
PAYMENT_MESSAGE Payment Message

 

ACCR: Accrual

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
INTEXP INT_ACCR Debit
INTERESTPAY INT_ACCR Credit

 

Advices

No advices allowed for this event

ROLL: Rollover

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
INTERESTPAY INT_CAP Debit
LIABGL INT_CAP Credit
INTERESTPAY INT_LIQD Debit
CUSTOMER INT_LIQD Credit
INTERESTPAY INT_ROLL Debit
LIABGL INT_ROLL Credit
RFEEINC RFEE Credit
CUSTOMER RFEE Debit
CUSTOMER PRINCI­PAL_ADDL Credit
LIABGL PRINCI­PAL_ADDL Debit
LIABGL PRINCIPAL_LIQD Debit
CUSTOMER PRINCIPAL_LIQD Credit

 

Advices

Advice Name Description
ROLL_ADV Rollover Advice
PAYMENT_MESSAGE Payment Message
CAP Capitalization Advice

 

STCH: Status Change

Accounting Entries

Nil

Advices

Nil

VAMI: Value Dated Amendment Initiation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
LIABGL PRINCI­PAL_INCR Credit
CUSTOMER PRINCI­PAL_INCR Debit
FWDLIABGL PRINCI­PAL_INCR Debit
FWDLIABOFF PRINCI­PAL_INCR Credit

 

Advices

Advice Name Description
AMDADV Amendment Advice
PAYMENT_MESSAGE Payment Message

 

VAMB: Value Dated Amendment Booking

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
FWDLIABGL PRINCI­PAL_INCR Credit
FWDLIABOFF PRINCI­PAL_INCR Debit

 

Advices

Advice Name Description
AMDADV Amendment Advice

 

CAMD: Contract Amendment

Accounting Entries

Nil

Advices

Advice Name Description
AMDADV Amendment Advice

 

NOTC: Billing Notice Generation

Accounting Entries

No Accounting Entries allowed for this event.

Advices

Advice Name Description
BILNOTC Billing Notice
UNCDE­PADV Unclaimed Deposit Notice

 

Clustered Deposit

The preferences set for this product are as follows:

BOOK: Booking

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
FWDLIABGL PRINCI­PAL_FWD Credit
FWDLIABOFF PRINCI­PAL_FWD Debit

 

Advices

Nil

INIT: Initiation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
FATAX1_PAY FATAX1_AMT Credit
CUSTOMER FATAX1_AMT Debit
INTERESTAQP INTEREST_ ACQD Debit
INTERESTPAY INTEREST_ACQD Credit
CUSTOMER PRINCIPAL Debit
LIABGL PRINCIPAL Credit
FWDLIABGL PRINCIPAL_FWD Debit
FWDLIABOFF PRINCIPAL_FWD Credit

 

Advices

Advice Name Description
DEAL_SLIP Contract Advice
PAYMENT_MESSAGE Payment Mes­sage

 

LIQD: Liquidation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
FRTAX1_PAY FRTAX1_AMT Credit
CUSTOMER FRTAX1_AMT Debit
INTERESTPAY INTEREST_ADJ Debit
CUSTOMER INTEREST_ADJ Credit
INTERESTPAY INT_LIQD Debit
CUSTOMER INT_LIQD Credit
CUSTOMER PRINCI­PAL_LIQD Credit
LIABGL PRINCI­PAL_LIQD Debit

 

Advices

Advice Name Description
PAYMENT_MESSAGE Payment Mes­sage

 

ACCR: Accrual

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
INTERESTPAY INT_ACCR Credit
INTEXP INT_ACCR Debit

 

Advices

No Advices are allowed for this event.

STCH: Status Change

Accounting Entries

Nil

Advices

Nil

VAMB: Value Dated Amendment Booking

Accounting Entries

Nil

Advices

Advice Name Description
AMDADV Amendment Advice

 

VAMI: Value Dated Amendment Initiation

Accounting Entries

Accounting Role Amount Tag Dr./Cr. Indicator
CUSTOMER PRINCI­PAL_INCR Debit
LIABGL PRINCI­PAL_INCR Credit

 

Advices

Advice Name Description
PAYMENT_MESSAGE Payment Mes­sage

 

NOTC: Billing Notice Generation

Accounting Entries

No Accounting Entries allowed for this event.

Advices

Advice Name Description
UNCDE­PADV Unclaimed Deposit Notice

 

Brokerage Processing

Only the Brokerage liquidated during BOOK event will be considered for IRR (Internal Rate of Return), the following new accounting role will be provided for setting up of accounting entries for the brokerage liquidation event.

Accounting Role Description
BROKPIA Brokerage amount Paid in Advance

 

The following new amount tags will be provided for setting up accounting entries for the Brokerage liquidation event.

Accounting Role Description
BROK_PREM Brokerage Premium Amount
BROK_DISC Brokerage Discount Amount

The accounting entry setup for the event BOOK are maintained as mentioned below for assets

Dr/Cr Accounting Role Amount Tag
Dr BROKPIA BROK_PREM
Cr BROKPAY BROK_PREM

The accounting entry setup for the event BOOK is maintained as mentioned below for liabilities.

Dr/Cr Accounting Role Amount Tag
Dr BROKPIA BROK_­DISC
Cr BROKPAY BROK_­DISC