This section contains details of the suggested accounting entries that can be set up, for the Islamic Financing module of Oracle FLEXCUBE. The details of the suggested accounting entries are given event-wise.
This chapter contains the following sections:
The following is an exhaustive list of events that can take place during the lifecycle of an Islamic Financing 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 |
CLOS |
Closure for off balance sheet comp |
DNTC |
Delinquency Notice Event |
DSBR |
Disbursement |
INIT |
Contract Initiation |
ISTM |
Profit Statement Event |
LCYP |
LCY update processing |
LIQB |
Liquidation Tanking |
LSTM |
Finance Statement Event |
MLIQ |
Manual Liquidation |
NOVA |
Novation |
PROV |
Provisioning |
READ |
Readjustment Processing |
REOP |
Reopen of finance 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 |
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 |
UIDB |
Unearned Profit Booking |
PACR |
Principal Accrual |
CONF |
Sale Confirmation |
INSR |
Insurance Renewal |
VPRV |
Vendor Payment Reversal |
VPAY |
Vendor Payment |
TRFR |
Transfer |
TADJ |
Transfer Adjustment |
In this section we have provided a list of sample accounting roles.
Accounting Role |
Description |
ASSETGL |
The Customer GL to which the Finance 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 |
PURCHASE ASSET |
Purchase Asset GL |
COMPONENT_UID |
Component Unearned Profit Booking |
DEFPRINCIPAL |
Deferred Rental (Principal) Account |
PRINCIPALINC |
Income from Ijarah (Principal) |
DealerWIPACC |
Dealer work in progress in account |
WAKALA_ASSETGL |
Real Asset for Wakala account |
WAKALA_SUSPGL |
Suspense GL for Wakala-Murabaha |
INSURANCE_ACC |
Insurance Company account |
INSURANCE_REC |
Account Receivable – Insurance collection |
ASSET_FINANCING |
Istisna Asset financing |
Accounting Role |
Acquisition Type |
Role Type |
EIMDISCRIA |
Discount |
Asset |
EIMDISCINC |
Discount |
Asset |
EIMPREMPIA |
Premium |
Asset |
EIMPREMEXP |
Premium |
Asset |
EIMINTADJREC |
Par |
Asset |
EIMINTADJINC |
Par |
Asset |
In this section we will discuss the suggested events and advices that should be generated for that particular event in the life cycle of Islamic Financing.
This section contains the following topics:
The system uses this event to enter details of a finance 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 finance 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 |
You can maintain the following accounting entries for Murabaha product along with the other entries.
Accounting Role |
Amount Tag |
Dr /Cr |
PURCHASE ASSET |
PRINCIPAL |
Dr |
CR_SETTLEMENT_BRIDGE |
PRINCIPAL |
Cr |
The following accounting entries for ‘Amount Financed’ and ‘Down Payment’ are passed for this event:
For Financial Lease without Asset Booking
Accounting Role |
Amount Tag |
Dr /Cr |
PURCHASE_ASSET |
PRINCIPAL |
Dr |
PURCHASE ASSET |
PRINCIPAL_DOWNPMNT |
Dr |
CR_SETTL_BRIDGE (Dealer A/c) |
PRINCIPAL |
Cr |
CR_SETTL_BRIDGE (Dealer A/c) |
PRINCIPAL_DOWNPMNT |
Cr |
The following accounting entries are passed for this event for Islamic Financing product:
For Financial Lease with Asset Booking
Accounting Role |
Amount Tag |
Dr /Cr |
PURCHASE_ASSET |
PRINCIPAL |
Dr |
PURCHASE ASSET |
PRINCIPAL_DOWNPMNT |
Dr |
CR_SETTL_BRIDGE |
PRINCIPAL |
Cr |
CR_SETTL_BRIDGE (Dealer A/c) |
PRINCIPAL_DOWNPMNT |
Cr |
The following accounting entries are passed for this event for the down payment:
Accounting Role |
Amount Tag |
Dr /Cr |
PURCHASE_ASSET |
PRINCIPAL |
Dr |
VENDORPAYABLEGL |
PRINCIPAL |
Cr |
PURCHASE_ASSET |
PRINCIPAL_DOWNPMNT |
Dr |
VENDORPAYABLEGL |
PRINCIPAL_DOWNPMNT |
Cr |
The following accounting entries are maintained for Istisna UIDB product component for this event:
Accounting Role |
Amount Tag |
Dr /Cr |
ASSET_FINANCING |
PRINCIPAL |
Dr |
VENDORPAYABLEGL |
PRINCIPAL |
Cr |
The system uses this event to initiate a finance with a value date as the date of initiation. However, you can not disburse the finance 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 |
Finance Summary Statement Advice |
CL_LOAN_SUMMARY |
COUPON |
Coupon Advice |
ADV_COUPON |
The following accounting entries are passed for this event:
For Operational Lease
Accounting Role |
Amount Tag |
Dr /Cr |
INT_INC |
PRINCIPAL_DOWNPMNT |
Cr |
DR_SETTL_BRIDGE |
PRINCIPAL_DOWNPMNT |
Dr |
The following accounting entries are maintained for Istisna UIDB product component for this event:
Accounting Role |
Amount Tag |
Dr /Cr |
LOAN_ACCOUNT |
PRINCIPAL |
Dr |
ASSET_FINANCING |
PRINCIPAL |
Cr |
The system uses this event whenever there is a change in principal or in rate revision. This event is triggered along with INIT, DSBR, VAMI, REVN, ROLL and MLIQ events.
Accounting Role |
Amount Tag |
Dr /Cr |
ASSET |
PRINCIPAL |
Dr |
PURCHASE ASSET |
PRINCIPAL |
Cr |
For unearned profit booking, the entries passed are:
Accounting Role |
Amount Tag |
Dr /Cr |
COMPONENT_REC |
COMPONENT_UINT |
Dr |
COMPONENT_UID |
COMPONENT_UINT |
Cr |
The following accounting entries are passed for this event for Islamic Financing product:
For Financial Lease with Asset Booking
Accounting Role |
Amount Tag |
Dr /Cr |
COMPONENT_REC |
COMPONENT_UINT |
Dr |
COMPONENT_UID |
COMPONENT _UINT |
Cr |
For Rebate Amount Calculation
Accounting Role |
Amount Tag |
Dr /Cr |
COMPONENT_REC |
COMPONENT_UINT |
Dr |
COMPONENT_UID |
COMPONENT_UINT |
Cr |
The following accounting entries are maintained for Istisna UIDB product component for this event:
Accounting Role |
Amount Tag |
Dr /Cr |
PROFIT_REC |
PROFIT_UINT |
Dr |
PROFIT_UID |
PROFIT_UINT |
Cr |
This event is marked by the disbursement of the finance amount. The disbursement may be done manually or can be triggered by a disbursement schedule. The finance account will have debit balances after total disbursement.
Advice Name |
Description |
Format Name |
CR_ADV |
Credit Advice |
CL_CR_ADV |
CLST_DETAILS |
Finance Detailed Statement Advice |
CL_LOAN_DETAIL |
CLST_SUMMARY |
Finance 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 |
You can maintain the following accounting entries for Murabaha product along with the other entries.
Accounting Role |
Amount Tag |
Dr /Cr |
ASSET |
PRINCIPAL |
Dr |
PURCHASE ASSET |
PRINCIPAL |
Cr |
The following accounting entries for ‘Amount Financed’ and ‘Down Payment’ are passed for this event:
For Financial Lease without Asset Booking
Accounting Role |
Amount Tag |
Dr /Cr |
LOAN_ACCOUNT |
PRINCIPAL |
Dr |
PURCHASE ASSET |
PRINCIPAL |
Cr |
PURCHASE ASSET |
PRINCIPAL_DOWNPMNT |
Cr |
DR_SETTL_BRIDGE (Customer A/c) |
PRINCIPAL_DOWNPMNT |
Dr |
The following accounting entries are passed for this event for Islamic Financing product:
For Financial Lease with Asset Booking
Accounting Role |
Amount Tag |
Dr /Cr |
PURCHASE ASSET |
PRINCIPAL |
Cr |
DEALERWIPACC |
PRINCIPAL |
Dr |
PURCHASE ASSET |
PRINCIPAL_DOWNPMNT |
Cr |
DR_SETTL_BRIDGE |
PRINCIPAL_DOWNPMNT |
Dr |
LOAN_ACCOUNT |
PRINCIPAL |
Dr |
DEFPRINCIPAL |
PRINCIPAL |
Cr |
For Insurance Refund
Accounting Role |
Amount Tag |
Dr /Cr |
DR_SETTL_BRIDGE |
COMPONENT_DP |
Dr |
COMPONENT_PAY |
COMPONENT_DP |
Cr |
COMPONENTPAY |
COMPONENT_DP |
Dr |
CR_SETTL_BRIDGE |
COMPONENT_DP |
Cr |
Note
The following accounting entries are passed for DSBR event for the down payment:
Accounting Role |
Amount Tag |
Dr /Cr |
DPRCVDGL |
PRINCIPAL_DOWNPMNT |
Dr |
PURCHASE_ASSET |
PRINCIPAL_DOWNPMNT |
Cr |
LOAN_ACCOUNT |
PRINCIPAL |
Dr |
PURCHASE_ASSET |
PRINCIPAL |
Cr |
The following accounting entries are passed for this event for the product with Insurance Required:
Accounting Role |
Amount Tag |
Dr /Cr |
DR_SETTL_BRIDGE |
COMPONENT_DP |
Dr |
COMPONENTPAY |
COMPONENT_DP |
Cr |
COMPONENTPAY |
COMPONENT_DP |
Dr |
CR_SETTL_BRIDGE |
COMPONENT_DP |
Cr |
The following accounting entries can be set up for the DSBR event in insurance renewal processing:
Accounting Role |
Amount Tag |
Dr /Cr |
Netting |
DR_SETTL_BRIDGE |
COMPONENT_DP |
Dr |
No |
COMPONENTPAY |
COMPONENT_DP |
Cr |
Yes |
COMPONENTPAY |
COMPONENT_DP |
Dr |
Yes |
CR_SETTL_BRIDGE |
COMPONENT_DP |
Cr |
No |
CR_SETTL_BRIDGE |
COMPONENT_PREMIUM |
Dr |
No |
INSURANCE_ACC |
COMPONENT_PREMIUM |
Cr |
No |
The following accounting entries are maintained for Istisna UIDB product for this event:
Accounting Role |
Amount Tag |
Dr /Cr |
VENDORPAYABLEGL |
PRINCIPAL |
Dr |
CR_SETTL_BRIDGE |
PRINCIPAL |
Cr |
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 Profit Accrual
Accounting Role |
Amount Tag |
Dr /Cr |
INT_REC |
INT_ACCR |
Dr |
INT_INC |
INT_ACCR |
Cr |
For Compensation Profit Accrual
Accounting Role |
Amount Tag |
Dr /Cr |
PENAL_INT_REC |
PENAL_INT_ACCR |
Dr |
PENAL_INT_INC |
PENAL_INT_ACCR |
Cr |
For unearned profit booking
Accounting Role |
Amount Tag |
Dr /Cr |
COMPONENT_UID |
COMPONENT_ACCR |
Dr |
COMPONENT_INC |
COMPONENT_ACCR |
Cr |
For Financial Lease without Asset Booking
Accounting Role |
Amount Tag |
Dr /Cr |
COMPONENT RECEIVABLE |
INT_ACCR |
Dr |
INCOME |
INT_ACCR |
Cr |
For Operational Lease
Accounting Role |
Amount Tag |
Dr /Cr |
COMPONENT RECEIVABLE |
COMPONENT _LIQD |
Dr |
INT_INC |
COMPONENT _LIQD |
Cr |
The following accounting entries are passed for this event for Islamic Financing product:
For Financial Lease with Asset Booking
Accounting Role |
Amount Tag |
Dr /Cr |
COMPONENT UID |
COMPONENT_ACCR |
Dr |
COMPONENT INC |
COMPONENT_ACCR |
Cr |
For Rebate Amount Calculation
Accounting Role |
Amount Tag |
Dr /Cr |
COMPONENT_UID |
COMPONENT_ACCR |
Dr |
COMPONENT_INC |
COMPONENT_ACCR |
Cr |
The following accounting entries are maintained for Istisna UIDB product component for this event:
Accounting Role |
Amount Tag |
Dr /Cr |
CompnameEXP |
Compname_ACCR |
Dr |
CompnamePAY |
Compname_ACCR |
Cr |
The following accounting entries are passed for this event for Islamic Financing product to process the insurance refund component:
Accounting Role |
Amount Tag |
Dr /Cr |
DR_SETTL_BRIDGE |
COMPONENT_ADCH |
Dr |
COMPONENT_PAY |
COMPONENT_ADCH |
Cr |
COMPONENT_PAY |
COMPONENT_ADCH |
Dr |
CR_SETTL_BRIDGE |
COMPONENT_ADCH |
Cr |
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 |
Profit Repayment
Accounting Role |
Amount Tag |
Dr /Cr |
DR_SETTLEMENT_BRG |
INT_LIQD |
Dr |
INT_REC |
INT_LIQD |
Cr |
Compensation Profit Repayment
Accounting Role |
Amount Tag |
Dr /Cr |
DR_SETTLEMENT_BRG |
PENAL_INT_LIQD |
Dr |
PENAL_INT_REC |
PENAL_INT_LIQD |
Cr |
Prepayment Compensation
Accounting Role |
Amount Tag |
Dr /Cr |
CUSTOMER |
Component_LIQD |
Dr |
componentINC |
Component_LIQD |
Cr |
For Rebate Amount Calculation
Accounting Role |
Amount Tag |
Dr /Cr |
CUSTOMER A/C (DR_SETTL_BRIDGE) |
COMPONENT_LIQD |
Dr |
COMPONENT_REC |
COMPONENT_LIQD |
Cr |
COMPONENT_UID |
COMPONENT_UINR |
Dr |
COMPONENT_REC |
COMPONENT_UINR |
Cr |
The accounting entries for these events with the residual amount liquidation will be as follows:
Accounting Role |
Amount Tag |
Dr /Cr |
LOAN_ACCOUNT |
PRINCIPAL_RV |
Cr |
DR_SETTL_BRIDGE |
PRINCIPAL_RV |
Dr |
COMPONENT RECEIVABLE |
INTEREST_RV |
Cr |
DR_SETTL_BRIDGE |
INTEREST_RV |
Dr |
The following accounting entries can be set up to process the product with Insurance requred:
Accounting Role |
Amount Tag |
Dr /Cr |
DR_SETTL_BRIDGE |
COMPONENT_LIQD |
Dr |
COMPONENTPAY |
COMPONENT_LIQD |
Cr |
COMPONENTPAY |
COMPONENT_LIQD |
Dr |
CR_SETTL_BRIDGE |
COMPONENT_LIQD |
Cr |
The following accounting entries can be set up for the MLIQ/ALIQ event to process insurance renewal:
Accounting Role |
Amount Tag |
Dr /Cr |
Netting |
DR_SETTL_BRIDGE |
COMPONENT_LIQD |
Dr |
No |
COMPONENTPAY |
COMPONENT_LIQD |
Cr |
Yes |
COMPONENTPAY |
COMPONENT_LIQD |
Dr |
Yes |
CR_SETTL_BRIDGE |
COMPONENT_LIQD |
Cr |
No |
CR_SETTL_BRIDGE |
COMPONENT_REC |
Dr |
No |
INSURANCE_REC |
COMPONENT_REC |
Cr |
No |
The following accounting entries are maintained for rebate component for this event:
Accounting Role |
Amount Tag |
Dr /Cr |
CompnamePAY |
Compname_LIQD |
Dr |
CR_SETTL_BRIDGE |
Compname_LIQD |
Cr |
This event is triggered when a status change occurs. It could be a Forward Status Change (FSTC) where the finance 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.
Profit accrual for status ‘ACTIVE’
Accounting Role |
Amount Tag |
Dr /Cr |
INT_REC |
INT_ACCR |
Dr |
INT_INC |
INT_ACCR |
Cr |
Profit accrual for status ‘PAST DUE’
Accounting Role |
Amount Tag |
Dr /Cr |
INT_REC |
INT_ACCR |
Dr |
INT_INC |
INT_ACCR |
Cr |
These statuses are triggered because of making amendments to a finance account.
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:
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 |
Any change to Rate and Tenor (Maturity Date) will alter the original finance schedules.
The following accounting entries are passed for this event:
For Financial Lease without Asset Booking
Accounting Role |
Amount Tag |
Dr /Cr |
LOAN_ACCOUNT |
PRINCIPAL_INCR |
Dr |
CR_SETTL_BRIDGE |
PRINCIPAL_INCR |
Cr |
This event is triggered when a finance is renewed with new terms. Rollover will have either a combination of liquidation and rollover of Principal. It can also have liquidation of Profit and compensation Profit.
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 Profit and Compensation Profit, 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 |
You may encounter the following cases:
Case 1: Rollover only Principal Outstanding; Pay Profit & Compensation Outstanding
In this case, both ‘PRINCIPAL_LIQD’ and ‘PRINCIPAL_ROLL’ will be zero and hence the ‘LOAN_ACCOUNT’ balance is not affected.
The Outstanding Profit and Principal will be liquidated. Referring to the accounting entries above,
Case 2: Rollover Principal + Profit Outstanding; Pay Compensation Outstanding
In this case,
Case 3: Rollover Principal + Profit + Compensation 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 finance 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 Finance Account.
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 |
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 |
This event is triggered when a primary customer is changed.
Advice Name |
Description |
Format Name |
CLAMDADV |
Amendment Advice |
CL_AMD_ADV |
This event is triggered when a finance 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 |
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 Profit Repayment
Accounting Role |
Amount Tag |
Dr /Cr |
DR_SETTLEMENT_BRG |
- INT_LIQD |
Dr |
INT_REC |
- INT_LIQD |
Cr |
Reversal of Compensation Profit Repayment
Accounting Role |
Amount Tag |
Dr /Cr |
DR_SETTLEMENT_BRG |
- PENAL_INT_LIQD |
Dr |
PENAL_INT_REC |
- PENAL_INT_LIQD |
Cr |
This will change the Floating Profit Rates based on the periodicity that you maintain.
Advice Name |
Description |
Format Name |
CL_INT_STMT |
Profit Statement Advice |
CL_INT_STMT |
RATECH_ADV |
Rate Change Advice |
CL_RTCH_ADV |
This will change the Floating Rate as and when the rate changes.
Advice Name |
Description |
Format Name |
CL_INT_STMT |
Profit Statement Advice |
CL_INT_STMT |
RATECH_ADV |
Rate Change Advice |
CL_RTCH_ADV |
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.
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 |
This event triggers the liquidation of charges applicable to the finance 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 |
This event realizes the principal payment in different accounts. You need to set up the following entries for this event:
Accounting Role |
Amount Tag |
Dr /Cr |
DEFPRINCIPAL |
PRINCIPAL_PACR |
Dr |
PRINCIPALINC |
PRINCIPAL_PACR |
Cr |
This event triggers renewal of insurance. You need to set up the following entries for this event:
Accounting Role |
Amount Tag |
Dr /Cr |
INSURANCE_REC |
COMPONENT_REC |
Dr |
CR_SETTL_BRIDGE |
COMPONENT_REC |
Cr |
CR_SETTL_BRIDGE |
COMPONENT_PREMIUM |
Dr |
INSURANCE_ACC |
COMPONENT_PREMIUM |
Cr |
The accounting entries for transferring principal outstanding Profit accrued and overdue (if any) to the new branch is:
Accounting Role |
Amount Tag |
Dr /Cr |
LOAN_ASSET_GL |
PRINCIPAL_OUTSTAND_TRFR_OBRN |
Cr |
PROFIT_REC |
PROFIT_OUTSTAND_TRFR_OBRN |
Cr |
LOAN_ASSET_GL |
PRINCIPAL_OUTSTAND_TRFR_NBRN |
Dr |
PROFIT_REC |
PROFIT_OUTSTAND_TRFR_NBRN |
Dr |
For CI with Unearned Profit, the unearned profit GL can be transferred with entries:
Accounting Role |
Amount Tag |
Dr /Cr |
PROFIT_UID |
PROFIT_UINT_TRFR_OBRN |
Dr |
PROFIT_UID |
PROFIT_UINT_TRFR_NBRN |
Cr |
To transfer the receivable GL for products with UIDB event defined the following entries need to be maintained:
Accounting Role |
Amount Tag |
Dr /Cr |
PROFIT_REC |
PROFIT_UREC_TRFR_OBRN |
Cr |
PROFIT_REC |
PROFIT_UREC_TRFR_NBRN |
Dr |
For vendor Payment, the vendor payable GL is transferred during the TRFR event.
Accounting Role |
Amount Tag |
Dr /Cr |
VENDOR_PAYABLE_GL |
PRINCIPAL_VPAY_TRN_OBRN |
Dr |
VENDOR_PAYABLE_GL |
PRINCIPAL_VPAY_TRN_NBRN |
Cr |
The balance in purchase asset has to be transferred during the transfer event. Hence the accounting entries maintained fro TRFR is as follows:
Accounting Role |
Amount Tag |
Dr /Cr |
PUR_ASSET_GL |
PURCHASE_ASSET_TRFR_OBRN |
Cr |
PUR_ASSET_GL |
PURCHASE_ASSET_TRFR_NBRN |
Dr |
The balance in down payment receivable has to be transferred during the transfer of event. Hence the accounting entries maintained for TRFR is:
Accounting Role |
Amount Tag |
Dr /Cr |
DPRCVDGL |
DOWNPAY_REC_TRFR_OBRN |
Cr |
DPRCVDGL |
DOWNPAY_REC_TRFR_OBRN |
Dr |
A transfer advice attached with event TRFR displays the account number, old and new branches, transfer date, the finance 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 |
CI_TRFR_ADV |
Transfer Advice |
CI_TRFR_ADV |
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 |
PROFIT_INC |
PROFIT_ADJINC_TADJ_OBRN |
Dr |
PROFIT _INC |
PROFIT_ADJINC_TADJ_NBRN |
Cr |
The event is sent when any asset is processed to be taken over and authorized.
Advice Name |
Description |
CL_TKOVER |
Take Over Advice |