10. Annexure A

This chapter contains the following sections:

Section 10.1, "Accounting Entries for Consumer Lending"
Section 10.2, "Events "
Section 10.3, "Accounting Roles"
Section 10.4, "Accounting Entries after Securitization"
Section 10.5, "Amount Tags"
Section 10.6, "Event-wise Advices"

10.1 Accounting Entries for Consumer Lending

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

10.2 Events

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

	Event Code		Event Description
	ACCR		Accrual
	ADCH		ADHOC charge application
	ALIQ		Auto liquidation
	ARVN		Automatic Rate Revision
	BADJ		Back Dated Adjustment
	BNTC		Billing Notice Event
	BOOK		Booking Of Contract
	CAMD		Contract Amendment
	CLOS		Closure for off balance sheet comp
	CLOC		Closure of Commitment
	DLINK		Payment made against a loan linked to a revolving commitment contract
	DNTC		Delinquency Notice Event
	DSBR		Disbursement
	INIT		Contract Initiation
	ISTM		Interest Statement Event
	LCYP		LCY update processing
	LIQB		Liquidation Tanking
	LSTM		Loan Statement Event
	LINK		Linking a Commitment to a loan account
	MLIQ		Manual Liquidation
	NOVA		Novation
	PROV		Provisioning
	READ		Readjustment Processing
	REOP		Reopen of loan account
	REVC		Reversal Of Contract
	REVD		Reversal Of Disbursement
	REVN		Rate Revision
	REVP		Reversal Of Payment
	RNOG		Re-Negotiation
	ROLB		Roll Over Booking
	ROLL		Roll Over Of Contract
	REVL		Reversal of Linked Loan Account
	SROL		Special Roll over
	STSH		Installment Status Change
	TAXC		Specific Tax Calculation
	UDCN		UDE Cascade Change
	USGR		Un-Secured GL Transfer Reversal
	USGT		Unsecured GL Transfer
	VAMB		Value Dated Amendment Booking
	VAMI		Value Dated Amendment Initiation
	YACR		Yield to Maturity based Discount Accrual
	INLQ		Intermediary Liquidation
	IMST		Intermediary Statement
	PWOF		Partial Write Off
	TRFR		Transfer
	TADJ		Transfer Adjustment
	INPL		Interest Payback Liquidation
	RINP		Interest Payback Reversal

10.3 Accounting Roles

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

	Accounting Role		Description
	ASSETGL		The Customer GL to which the Loan Account movements are reported.
	PRINCIPAL_LIQD		Principal Liquidated
	PRINCIPAL_INCR		Principal Increased
	COMPONENT _INC		Component Income
	COMPONENT EXP		Component Expense
	COMPONENT RIA		Component Received in Advance
	COMPONENT PAY		Component Payable
	COMPONENT REC		Component Receivable
	COMPONENT PIA		Component Paid in Advance
	BRIDGE GL		Intersystem Bridge GL
	SETTLEMENT ACCOUNT		Customer Account Settled From / To
	FEES_REC		Fees Receivable
	CHARGES_REC		Adhoc Charges Receivable
	IN_INTER_STMT		Intermediary Statement
	PRINCIPAL_EXP_D		Principal Expense Doubt
	LOAN_AC_DOUB		Loan Account Doubt
	CONT_W_DOUB		Contingent Write Off Doubt
	CONT_SUBS		Contingent Substandard
	MAIN_INTEXP_DOUB		Maintenance Interest Expense Doubt
	MAIN_INTREC_DOUB		Maintenance Interest Receivable Doubt
	MIN_AMT_SCHODUE		Minimum Amount Due Amount for the latest billing period
	PAY_BY_SCHODUE		Outstanding amount as of a particular date for the latest billing period
	MIN_AMT_OVR_DAYS		Minimum Amount Due that has not been fully paid from a pay by date
	SERVICE_ACCOUNT		Service Account

The following accounting entries for passed for DSBR event:

Accounting Role	Amount Tag	Dr/Cr
Asset	PRINCIPAL	Dr
CR_SETTLEMENT_BRIDGE	PRINCIPAL	Cr

Accounting Roles for the YACR Event

Sl No	Accounting Role	Acquisition Type	Role Type
1.	EIMDISCRIA	Discount	Asset
2.	EIMDISCINC	Discount	Asset
3.	EIMPREMPIA	Premium	Asset
4.	EIMPREMEXP	Premium	Asset
5.	EIMINTADJREC	Par	Asset
6.	EIMINTADJINC	Par	Asset

10.4 Accounting Entries after Securitization

The following entries are applicable only for securitization supporting products.

Event: DSBR

Amount Tag	GL Description	Debit/Credit
PRINCIPAL	SPV_SETTL_BRIDGE_DR	Dr
PRINCIPAL	CR_SETTL_BRIDGE	Cr
MAIN_INTRIA	DR_SETTL_BRIDGE	Dr
MAIN_INTRIA	SPV_SETTL_BRIDGE_CR	Cr

EVENT: STCH - STATUS CHANGE: NORM - SECR (SECURITIZATION EVENT)

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_OUTSTAND	SPV_SETTL_BRIDGE_DR	Dr
PRINCIPAL_OUTSTAND	LOAN_ACCOUNT	Cr
MAIN_INT_ACCRUED	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_ACCRUED	MAIN_INTREC	Cr
MAIN_INT_OD	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_OD	MAIN_INTINC	Cr
ODPR_PNLTY_OD	SPV_SETTL_BRIDGE_DR	Dr
ODPR_PNLTY_OD	ODPR_PNLTY_INC	Cr
ODIN_PNLTY_OD	SPV_SETTL_BRIDGE_DR	Dr
ODIN_PNLTY_OD	ODIN_PNLTY_INC	Cr
MAIN_INT_RIABAL	MAININT_RIA	Dr
MAIN_INT_RIABAL	SPV_SETTL_BRIDGE_CR	Cr

EVENT : STCH - STATUS CHANGE: SECR - NORM (DE-SECURITIZATION/PURCHASE EVENT)

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_OUTSTAND	LOAN_ACCOUNT	Dr
PRINCIPAL_OUTSTAND	SPV_SETTL_BRIDGE_CR	Cr
MAIN_INT_ACCRUED	MAIN_INTREC	Dr
MAIN_INT_ACCRUED	SPV_SETTL_BRIDGE_CR	Cr
MAIN_INT_OD	MAIN_INTREC	Dr
MAIN_INT_OD	SPV_SETTL_BRIDGE_CR	Cr
ODPR_PNLTY_OD	ODPR_PNLTYREC	Dr
ODPR_PNLTY_OD	SPV_SETTL_BRIDGE_CR	Cr
ODIN_PNLTY_OD	ODIN_PNLTYREC	Dr
ODIN_PNLTY_OD	SPV_SETTL_BRIDGE_CR	Cr
MAIN_INT_RIAEXP	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_RIAEXP	MAININT_RIA	Cr

EVENT: LIQD (INTEREST) - IF SALE IS HAPPENED IN THE ACCRUAL PERIOD

When Interest is capitalized:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_CAP	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_CAP	MAIN_INTREC	Cr

When Interest is liquidated:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_LIQD	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_LIQD	SPV_SETTL_BRIDGE	Cr

When Interest is waived:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_WAVD	SPV_EXPENSE	Dr
MAIN_INT_WAVD	SPV_SETTL_BRIDGE_CR	Cr

When Principal is liquidated:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_LIQD	DR_SETTL_BRIDGE	Dr
PRINCIPAL_LIQD	SPV_SETTL_BRIDGE_CR	Cr

When Principal is waived:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_WAVD	SPV_EXPENSE	Dr
PRINCIPAL_WAVD	SPV_SETTL_BRIDGE_CR	Cr

EVENT: ACCR

Amount Tag	GL Description	Debit/Credit
MAIN_INT_ACCR	SPV_ACCR	Dr
MAIN_INT_ACCR	SPV_ACCR	Cr

EVENT: ADCH

Amount Tag	GL Description	Debit/Credit
ADCH_CHG_ADCH	DR_SETTL_BRIDGE	Dr
ADCH_CHG_ADCH	SPV_SETTL_BRIDGE_CR	Cr

EVENT: VAMB

Amount Tag	GL Description	Debit/Credit
HANDLNG_CHG_LIQD	DR_SETTL_BRIDGE	Dr
HANDLNG_CHG_LIQD	SPV_SETTL_BRIDGE_CR	Cr

EVENT: VAMI

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_INCR	SPV_SETTL_BRIDGE_CR	Dr
PRINCIPAL_INCR	CR_SETTL_BRIDGE	Cr

EVENT: ROLL

When Principal is increased:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_INCR	SPV_SETTL_BRIDGE_DR	Dr
PRINCIPAL_INCR	CR_SETTL_BRIDGE	Cr

When Interest is liquidated:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_LIQD	DR_SETTL_BRIDGE	Dr
MAIN_INT_LIQD	SPV_SETTL_BRIDGE_CR	Cr

When Principal is liquidated:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_LIQD	DR_SETTL_BRIDGE	Dr
PRINCIPAL_LIQD	SPV_SETTL_BRIDGE_CR	Cr

During Interest rollover:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_ROLL	LOAN_ACCOUNT	Cr
MAIN_INT_ROLL	SPV_SETTL_BRIDGE_DR	Dr

When Principal is waived:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_WAVD	SPV_EXPENSE	Dr
PRINCIPAL_WAVD	SPV_SETTL_BRIDGE_CR	Cr

When Interest is waived:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_WAVD	SPV_EXPENSE	Dr
MAIN_INT_WAVD	SPV_SETTL_BRIDGE_CR	Cr

EVENT-RNOG

When Principal is liquidated:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_LIQD	DR_SETTL_BRIDGE	Dr
PRINCIPAL_LIQD	SPV_SETTL_BRIDGE_CR	Cr

When Interest is liquidated:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_LIQD	DR_SETTL_BRIDGE	Dr
MAIN_INT_LIQD	SPV_SETTL_BRIDGE_CR	Cr

When Principal is waived:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_WAVD	SPV_EXPENSE	Dr
PRINCIPAL_WAVD	SPV_SETTL_BRIDGE_CR	Cr

When Interest is waived:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_WAVD	SPV_EXPENSE	Dr
MAIN_INT_WAVD	SPV_SETTL_BRIDGE_CR	Cr

10.5 Amount Tags

The following entries are applicable only for securitization supporting products.

	Amount Tag		Description
	PRINCIPAL_OUTSTAND		Sum of principal overdue and Principal outstanding
	MAIN_INT_OD		Sum of Main interest over due
	ODPR_PNLTY_OD		Sum of overdue principal penalty component
	ODIN_PNLTY_OD		Sum of overdue interest penalty component
	MAIN_INT_RIABAL		Balance of RIA (RIA - sum of interest paid previous months + occurred till date)
	MAIN_INT_RIAEXP		RIA expected from SPV during Buyback

10.6 Event-wise Advices

In this section we will discuss the suggested events and advices that should be generated for that particular event in the life cycle of Consumer Lending.

BOOK

The system uses this event to enter details of a loan account. However, at this stage the account is not initialized thus there will not be a change in the balance but you can perform other activities (processing fee etc) for the loan account. The accounting entries passed will be either Contingent Entries for disbursement or component liquidations entries.

	Advice Name		Description		Format Name
	CL_CONT_ADV		Contract Advice		CL_CONTR_STMT

On BOOK event of a commitment contract the following accounting entries are passed:

Accounting Role	Amount Tag	Dr./Cr. Indicator
CONTGL	PRINCIPAL_FWD	Debit
CONTOFF	PRINCIPAL_FWD	Credit

INIT

The system uses this event to initiate a loan with a value date as the date of initiation. However, you can not disburse the loan under this event.

Advice Name	Description	Format Name
CL_INIT_ADV	Initiation Advice	CL_INIT_ADV
CL_CAP	Capitalization Advice	CL_CAP_ADV
CL_CONT_ADV	Contract Advice	CL_CONTR_STMT
CLST_SUMMARY	Loan Summary Statement Advice	CL_LOAN_SUMMARY
COUPON	Coupon Advice	ADV_COUPON

DSBR

This event is marked by the disbursement of the loan amount. The disbursement may be done manually or can be triggered by a disbursement schedule. The loan account will have debit balances after total disbursement.

Advice Name	Description	Format Name
CR_ADV	Credit Advice	CL_CR_ADV
CLST_DETAILS	Loan Detailed Statement Advice	CL_LOAN_DETAIL
CLST_SUMMARY	Loan Summary Statement Advice	CL_LOAN_SUMMARY
TAX_ADVICE	Tax Advice	CL_TAX_ADVICE

The entries passed are:

Accounting Role	Amount Tag	Dr /Cr
LOAN_AC	PRINCIPAL	Dr
CR_SETTLEMENT_BRG	PRINCIPAL	Cr

Note

The loan account of the customer reports to an internal GL of the bank, determined by the Role to Head mapping done at the product level.
A settlement bridge account is used since there is a probability of the customer account being present in another system which is capable of interfacing with Oracle FLEXCUBE. During the reconciliation process, the appropriate customer account in the relevant system is credited with the loan amount.

ACCR

The accrual of the various components will be triggered based on the accrual parameters you maintain at the product level.

The following accounting entries are passed for this event:

For Interest Accrual

Accounting Role	Amount Tag	Dr /Cr
INT_REC	INT_ACCR	Dr
INT_INC	INT_ACCR	Cr

For Penalty Interest Accrual

Accounting Role	Amount Tag	Dr /Cr
PENAL_INT_REC	PENAL_INT_ACCR	Dr
PENAL_INT_INC	PENAL_INT_ACCR	Cr

INLQ

This event is triggered as a batch process for the Intermediary Liquidation based on the product event advice maintenance. It provides basic information about the Intermediary and the corresponding commission settlement.

	Advice Name		Description		Format Name
	‘IN_INTER_CR		Intermediary Credit		INTER_CR_ADV

INCH

This event is triggered as a batch process for the Intermediary Liquidation based on the product event class maintenance. It provides basic information about the Intermediary and charge collected because of pre-payment and late payment by the customer.

	Advice Name		Description		Format Name
	IN_INTER_DR		Intermediary Debit		INTER_DR_ADV

IMST

This event is triggered as per the statement frequency maintained at the Intermediary Level. It provides basic information about the Intermediary and the corresponding commission/charge settlements.

	Advice Name		Description		Format Name
	IN_INTER_STMT		Intermediary Statement		IN_INTER_STMT

ALIQ and MLIQ

Depending on the mode of liquidation opted for, whether automatic or manual, the appropriate event is triggered. A batch process will be triggered at EOD for payments that are marked for auto liquidation.

ALIQ

Advice Name	Description	Format Name
DR_ADV	Debit Advice	CL_DR_ADV
DELINQYADV	Delinquency Advice	CL_DELQ_ADV

MLIQ

Advice Name	Description	Format Name
BILNOTC	Billing Advice	CL_BILL_ADVC
DELINQYADV	Delinquency Advice	CL_DELQ_ADV
PAYMENT_ADVICE	Payment Advice	CL_PMT_ADV

The accounting entries for these events will be as follows:

Principal Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLEMENT_BRG	PRINCIPAL_LIQD	Dr
LOAN_AC	PRINCIPAL_LIQD	Cr

Interest Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLEMENT_BRG	INT_LIQD	Dr
INT_REC	INT_LIQD	Cr
INTERNAL_GL	MAIN_INT_WHLD	Dr
MAIN_INTREC	MAIN_INT_WHLD	Cr

Penalty Interest Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLEMENT_BRG	PENAL_INT_LIQD	Dr
PENAL_INT_REC	PENAL_INT_LIQD	Cr

Following are the accounting entries passed for the manual repayment of loan by cash:

Accounting Role		Amount Tag		Dr /Cr
DR_SETTL_BRIDGE	PRINCIPAL_LIQD		DR
LOAN_ACCOUNT	PRINCIPAL_LIQD		CR
DR_SETTL_BRIDGE	MAIN_INT_LIQD		DR
MAIN_INT_REC	MAIN_INT_LIQD		DR

LINK

This event is triggered when a commitment is linked to a consumer lending loan account. LINK event increases the utilization of the commitment amount and the contingent entries passed at the time of INIT is reversed upto the extent of linked amount.

Accounting Role	Amount Tag	Dr./Cr. Indicator
ASSETGL	COMMUTIL_INCR	Credit
ASSETOFF	COMMUTIL_INCR	Debit
DR_SETTL_BRIDGE	<Charge Comp>_LIQD	Debit
CHARGE_COMPONENT_INC	<Charge Comp>_LIQD	Credit

DLNK (Delink)

This event is triggered when payment is made against a loan, which is linked to a revolving commitment contract, Delink decreases the utilization of commitment amount.

Accounting Role	Amount Tag	Dr./Cr. Indicator
ASSETGL	COMMUTIL_DECR	Debit
ASSETOFF	COMMUTIL_DECR	Credit

STCH

This event is triggered when a status change occurs. It could be a Forward Status Change (FSTC) where the loan moves from one adverse status to another or a Backward Status Change (BSTC) wherein, on repayment of overdue installments, a reversal of status takes place. The status derivation rule is used to resolve the status. The change may occur due to a status rule being activated. If the number of days by which a component becomes overdue, exceeds the allowed number of days (may be referred to as the grace period), the component can undergo a status change if a status rule is defined with such a criteria. A status change is triggered if any condition defined for the rule is satisfied.

The accounting entries, if maintained for the events (FSTC and BSTC) will be triggered. The accounting role provided will be the same for all the changes. However, the Role to Head mapping rules will resolve the entries to the appropriate accounts for each status.

Interest accrual for status ‘ACTIVE’

Accounting Role	Amount Tag	Dr /Cr
INT_REC (Mapped to a Real Asset)	INT_ACCR	Dr
INT_INC (Mapped to a Real Income GL)	INT_ACCR	Cr

Interest accrual for status ‘PAST DUE’

Accounting Role	Amount Tag	Dr /Cr
INT_REC (Mapped to a Contingent Asset)	INT_ACCR	Dr
INT_INC (Mapped to a Contingent Liability)	INT_ACCR	Cr

CAMD, VAMB and VAMI

These statuses are triggered as a result of making amendments to a loan.

CAMD (Account Amendment)

Any amendment to the parameters of the account will create a new version of the loan. These changes will not have any implications on the financial attributes of the loan.

	Advice Name		Description		Format Name
	CLAMDADV		Amendment Advice		CL_AMD_ADV

VAMB (Booking of a Value Dated Amendment)

This event is triggered when you book a value dated amendment.

You can book for an amendment of the following:

Maturity date
Principal Increase
Rate change

The batch program will identify the changes booked and the same is triggered appropriately on the value date by the VAMI event.

	Advice Name		Description		Format Name
	CLAMDADV		Amendment Advice		CL_AMD_ADV

VAMI (Initiation of a Value Dated Amendment)

This event will pick up the future dated VAMBs and on the value date, initiate the same.

The accounting entries for an increase in principal will be as follows:

Accounting Role	Amount Tag	Dr /Cr
LOAN_AC	PRINCIPAL_INCREASED	Dr
CR_SETTLEMENT_BRG	PRINCIPAL_INCREASED	Cr
DR_SETTL_BRIDGE	<Charge Comp>_LIQD	Dr
PROC_CHARGEINC	<Charge Comp>_LIQD	Cr

Any change to Rate and Tenor (Maturity Date) will alter the original loan schedules.

ROLL

This event is triggered when a loan is renewed with new terms. Rollover will have either a combination of liquidation and rollover of Principal. It can also have liquidation of Interest and penalty Interest.

Advice Name	Description	Format Name
CLAMDADV	Amendment Advice	CL_AMD_ADV
CL_ROLL_ADV	Rollover Advice	CL_ROLL_ADV
PAYMENT_ADVICE	Payment Advice	CL_PMT_ADV

The entries passed for rollover of the Principal are as follows:

Accounting Role	Amount Tag	Dr /Cr
CR_SETTLEMENT_BRG	PRINCIPAL_ROLL	Cr
LOAN_AC	PRINCIPAL_ROLL	Dr

For liquidation of Principal, the following entries are passed:

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLEMENT_BRG	PRINCIPAL_LIQD	Dr
LOAN_AC	PRINCIPAL_LIQD	Cr

For liquidation of Interest and Penalty Interest, the entries are:

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLEMENT_BRG	LIQD_AMT	Dr
INT_REC	INT_LIQD	Cr
PENAL_INT_REC	PENAL_INT_LIQD	Cr
INTERNAL_GL	MAIN_INT_WHLD	Dr
MAIN_INTREC	MAIN_INT_WHLD	Cr

You may encounter the following cases:

Case 1: Rollover only Principal Outstanding; Pay Interest & Penalty Outstanding

In this case, both ‘PRINCIPAL_LIQD’ and ‘PRINCIPAL_ROLL’ will be zero and hence the ‘LOAN ACCOUNT’ balance is not affected.

The Outstanding Interest and Principal will be liquidated. Referring to the accounting entries above,

INT_LIQD = Interest Outstanding
PENAL_INT_LIQD = Penalty Interest Outstanding
LIQD_AMT = INT_LIQD + PENAL_INT_LIQD (If Netting is ‘ON’ and both have the same Settlement Account).

Case 2: Rollover Principal + Interest Outstanding; Pay Penalty Outstanding

In this case,

PRINCIPAL_LIQD = 0,
PRINCIPAL_ROLL = INT_ROLL (which is the Interest Rolled over as Principal);
PENAL_INT_LIQD = Penalty Interest Outstanding
LIQD_AMT = PENAL_INT_LIQD (If Netting is on and both have the same Settlement Account).

Case 3: Rollover Principal + Interest + Penalty Outstanding

PRINCIPAL_ROLL = INT_ROLL + PENAL_INT_ROLL

LIQD_AMT = 0

Case 4 - a: Rollover Special Amount, Amount > Principal Outstanding

This is in effect a disbursement. Therefore,

PRINCIPAL_ROLL = SPECIAL_AMOUNT – PRINCIPAL_OUTSTANDING

Since the rolled over amount is greater than the outstanding principal, it will be positive and hence an increase in the loan amount is registered.

Case 4 – b: Rollover Special Amount, Amount < Principal Outstanding

This results in a decrease in Principal and hence

PRINCIPAL_ROLL = SPECIAL_AMOUNT – PRINCIPAL_OUTSTANDING will lead to a negative amount which will reduce the Dr Balance on the Loan Account.

SROL – Special Roll-over

This event is triggered when a roll-over is done and it involves a change in the currency, product and customer.

Advice Name	Description	Format Name
CLAMDADV	Amendment Advice	CL_AMD_ADV
CL_ROLL_ADV	Roll-over Advice	CL_ROLL_ADV

RNOG – Re-negotiation

This event is triggered when a customer is not being able to honor the terms and conditions of the credit. In such a situation, the client re-negotiates the terms and conditions of the credit before maturity date.

Advice Name	Description	Format Name
CLAMDADV	Amendment Advice	CL_AMD_ADV
PAYMENT_ADVICE	Payment Advice	CL_PMT_ADV

NOVA – Novation

This event is triggered when a primary customer is changed.

	Advice Name		Description		Format Name
	CLAMDADV		Amendment Advice		CL_AMD_ADV

REVC – Loan Reversal

This event is triggered when a loan is withdrawn. This will pass the DSBR entries with a reversal of signs (-ve) for the amounts, as follows:

Accounting Role	Amount Tag	Dr /Cr
LOAN_AC	- PRINCIPAL	Dr
CR_SETTLEMENT_BRG	- PRINCIPAL	Cr

REVP - Payment Reversal

The latest payment made, both auto and manual, will be reversed during this event. This will pass the ALIQ or MLIQ event selected with a reversal of signs for the amounts.

Reversal of Principal Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLEMENT_BRG	- PRINCIPAL_LIQD	Dr
LOAN_AC	- PRINCIPAL_LIQD	Cr

Reversal of Interest Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLEMENT_BRG	- INT_LIQD	Dr
INT_REC	- INT_LIQD	Cr

Reversal of Penalty Interest Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLEMENT_BRG	- PENAL_INT_LIQD	Dr
PENAL_INT_REC	- PENAL_INT_LIQD	Cr

REVN – Periodic Rate Revision

This will change the Floating Interest Rates based on the periodicity that you maintain.

Advice Name	Description	Format Name
CL_INT_STMT	Interest Statement Advice	CL_INT_STMT
RATECH_ADV	Rate Change Advice	CL_RTCH_ADV

ARVN – Automatic Rate Revision

This will change the Floating Rate as and when the rate changes.

Advice Name	Description	Format Name
CL_INT_STMT	Interest Statement Advice	CL_INT_STMT
RATECH_ADV	Rate Change Advice	CL_RTCH_ADV

UDCH – User Defined Element Value Changes

This event will be triggered whenever there is a change in the UDE values. This will be required to have Rate revision advices sent to the customers.

YACR – Yield to Maturity Discount Accrual

This event will be triggered for the computation of IRR. The following accounting entries will be passed:

Accounting Role	Amount Tag	Dr /Cr
EIMDISCRIA	EIM_ACCR	Dr
EIMDISCINC	EIM_ACCR	Cr
EIMPREMEXP	EIM_ACCR	Dr
EIMPREMPIA	EIM_ACCR	Cr

If refunding needs to be done as part of with complete pre-payment, the following entries should be passed in addition to the ones specified above:

Accounting Role	Amount Tag	Dr /Cr
<Charge Comp>_RIA	EIM_ADJ	Dr
CR_SETTL_BRIDGE	EIM_ADJ	Cr
DR_SETTL_BRIDGE	EIM_ADJ	Dr
<Charge Comp>_PIA	EIM_ADJ	Cr

CLIQ – Charge Liquidation

This event triggers the liquidation of charges applicable to the loan accounts. You need to set up the following entries for this event:

Accounting Role	Amount Tag	Dr /Cr
DR_SETTL_BRIDGE	<Charge Comp>_LIQD	Dr
<Charge Comp>_RIA	<Charge Comp>_LIQD	Cr
CR_SETTL_BRIDGE	<Charge Comp>_LIQD	Dr
<Charge Comp>_PIA	<Charge Comp>_LIQD	Cr

CLOC Event

Accounting Role	Amount Tag	Dr./Cr. Indicator
CONTGL	COMM_UNUTIL	Credit
CONTOFF	COMM_UNUTIL	Debit

CLOS Event

In case of loan account closure, system will have to move the amount available from service account to the customers settlement account.

Accounting Role	Amount Tag	Dr./Cr. Indicator
CR_SETTL_BRIDGE	CREDIT_BAL	Credit
SERVICE_ACCOUNT	CREDIT_BAL	Debit

Accounting Entries for RML – Reverse Mortgage Loan

DSBR Event

Accounting Role	Amount Tag	Dr/Cr
LOAN_ACCOUNT	PRINCIPAL	Dr
CR_SETTL_BRIDGE	PRINCIPAL	Cr

ACCR Event

Accounting Role	Amount Tag	Dr/Cr
MAIN_INTREC	MAIN_INT_ACCR	Dr
MAIN_INTINC	MAIN_INT_ACCR	Cr

MLIQ/ALIQ Event

Accounting Role	Amount Tag	Dr/Cr
DR_SETTL_BRIDGE	PRINCIPAL_LIQD	Dr
LOAN_ACCOUNT	PRINCIPAL_LIQD	Cr
DR_SETTL_BRIDGE	PRINCIPAL_EXCESS	Dr
PRINCIPALPAY	PRINCIPAL_EXCESS	Cr

PRINCIPALEXP	PRINCIPAL_WAVD	Dr
LOAN_ACCOUNT	PRINCIPAL_WAVD	Cr

DR_SETTL_BRIDGE	MAIN_INT_LIQD	Dr
MAIN_INTREC	MAIN_INT_LIQD	Cr
MAIN_INTEXP	MAIN_INT_WAVD	DR
MAIN_INTREC	MAIN_INT_WAVD	CR

PWOF-Partial Write Off

This event triggers the Partial Write Off in CL. You need to set up the following entries for this event:

Account Role	Amount Tag	Dr/Cr
PRINCIPAL_EXP_D	PRINCIPAL_PWOF	Debit
LOAN_AC_DOUB	PRINCIPAL_PWOF	Credit
CONT_W_DOUB	MAIN_INT_PWOF_CONT	Debit
CONT_SUBS	MAIN_INT_PWOF_CONT	Credit
MAIN_INTEXP_DOUB	MAIN_INT_PWOF	Debit
MAIN_INTREC_DOUB	MAIN_INT_PWOF	Credit

AUTH Event

The event is sent when any asset is processed to be taken over and authorized.

	Advice Name		Description
	CL_TKOVER		Take Over Advice

TRFR Event

This event triggers the transfer of loans. You need to set up the following entries for the event:

Transferring Account Entries

Account Role	Amount Tag	Dr/Cr
LOAN_ASSET_GL	PRINCIPAL_OUTSTAND_TRFR_OBRN	Credit
INT_RECV_GL	MAIN_INT_OUTSTAND_TRFR_OBRN	Credit
LOAN_ASSET_GL	PRINCIPAL_OUTSTAND_TRFR_NBRN	Debit
INT_RECV_GL	MAIN_INT_OUTSTAND_TRFR_NBRN	Debit

In case of any interest component say <COMP_NAME>, penalty or charge component for the product with accrual then the following account entries are maintained:

Account Role	Amount Tag	Dr/Cr
OTH_INT_INCOME_GL	<COMP_NAME>_INCOME_TRFR_OBRN	Debit
OTH_INT_REC_GL	<COMP_NAME>_OUTSTAND_TRFR_OBRN	Credit
OTH_INT_INCOME_GL	<COMP_NAME>_INCOME_TRFR_NBRN	Credit
OTH_INT_REC_GL	<COMP_NAME>_OUTSTAND_TRFR_NBRN	Debit

Transfer of Discounted Loans

If the loan account transferred is a discounted loan then the accounting entries for the transfer event is maintained for the main interest.

Account Role	Amount Tag	Dr/Cr
LOAN_ASSET_GL	PRINCIPAL_OUTSTAND_TRFR_OBRN	Credit
LOAN_ASSET_GL	PRINCIPAL_OUTSTAND_TRFR_NBRN	Debit
INT_REC_ADV_GL	MAIN_INT_RIA_TRFR_OBRN	Debit
INT_REC_ADV_GL	MAIN_INT_RIA_TRFR_NBRN	Credit

Transfer of Commitments

When a commitment is transferred then the accounting entries for the transfer event is maintained as following:

Account Role	Amount Tag	Dr/Cr
ASSET_GL	PRINCIPAL_FWD_TRFR_OBRN	Credit
ASSETOFF	PRINCIPAL_FWD_TRFR_OBRN	Debit
ASSET_GL	PRINCIPAL_FWD_TRFR_NBRN	Debit
ASSETOFF	PRINCIPAL_FWD_TRFR_NBRN	Credit

A transfer advice attached with event TRFR displays the account number, old and new branches, transfer date, the loan outstanding as on transfer date and the schedule details. The advice specifies whether the transfer is done as part of branch merger, product transfer or customer initiated transfer.

	Advice Name		Description		Format Name
	CL_TRFR_ADV		Transfer Advice		CL_TRFR_ADV

TADJ Event

The event adjusts the income in the old branch in case of reversal of pre-transfer events and for back-dated events beyond the transfer date. You need to set up the following entries for the event:

Account Role	Amount Tag	Dr/Cr
MAIN_INT_INC	MAIN_INT_ADJINC_TADJ_OBRN	Debit
MAIN_INT_INC	MAIN_INT_ADJINC_TADJ_NBRN	Credit

BADJ Event

During Value Dated Amendment, Manual Liquidation or Rate Revision, main interest can be adjusted and credited to customer’s settlement account. Accounting entries supporting this event are as below:

Account Role	Amount Tag	Dr/Cr
DR_SETTL_BRIDGE	MAIN_INT_DRLQ	DEBIT
MAIN_INT_RIA	MAIN_INT_DRLQ	CREDIT
MAIN_INT_RIA	MAIN_INT_DRLQ	DEBIT
CR_SETTL_BRIDGE	MAIN_INT_DRLQ	CREDIT