This chapter contains the following sections:
This section contains details of the suggested accounting entries that can be set up, for the Interest and Charges module of Oracle FLEXCUBE. The details of the suggested accounting entries are listed event-wise.
The following is an exhaustive list of events that can take place during Interest or Charge calculation. In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below.
| Event Code | Event Description | ||
|---|---|---|---|
| CLIQ | Charges Liquidation | ||
| IACR | Interest Accrual | ||
| ILIQ | Interest Liquidation | ||
| UDCH | UDE Values Change |
The amount tags listed below are hard-coded in Oracle FLEXCUBE.
| Amount Tag | Description | ||
|---|---|---|---|
| CHARGE | Charges | ||
| IACQUIRED | Acquired Interest Amount | ||
| IACR | Interest Accrual | ||
| IACR_ADJ | Interest Accrual Adjustments | ||
| ILIQ | Interest Liquidation | ||
| TAX | Tax | ||
| TAX_ADJ | Tax Adjustments | ||
| INT_PADJ | Back valued interest adding to the normal interest | ||
| INT_NADJ | Back valued interest reducing the normal interest | ||
| TAX_PADJ | Back valued tax adding to the normal tax | ||
| TAX_NADJ | Back valued tax reducing the normal tax | ||
| FATCA_TAX | FATCA tax | ||
| FATCA_REFERRAL | FATCA referral | ||
| IACR_ADJ_CURR | Interest adjustment amount for current financial year | ||
| IACR_ADJ_PREV | Interest adjustment amount for previous financial year |
In addition to these you can define amount tags as per your requirements.
The following list contains the accounting roles that are applicable to IC.
| Accounting Role | |
|---|---|
| CHG_INCOME | |
| CHG_BOOK | |
| DIV_TAX_EXP | |
| CUST_DVTAX_COD | |
| INT_IC_AJE | |
| DIV_TAX_PAD | |
| <RULE>-ESCROW-<FORMULA NO> | |
| -PNL_ADJ_CURR- | |
| -PNL_ADJ_PREV- |
This section contains the following topics:
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CHG_BOOK | CHARGE | DEBIT | |||
| CHG_INCOME | CHARGE | CREDIT |
Advices
No advices allowed for this event.
No accounting entries allowed for this event.
Advices
| Advice type | Description | ||
|---|---|---|---|
| UDECA | Advice Type |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CHG_BOOK | CHARGE | DEBIT | |||
| CHG_INCOME | CHARGE | CREDIT |
Advices
No advices allowed for this event.
No accounting entries allowed for this event.
Advices
| Advice type | Description | ||
|---|---|---|---|
| UDECA |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CHG_BOOK | CHARGE | DEBIT | |||
| CHG_INCOME | CHARGE | CREDIT |
Advices
No advices allowed for this event.
No accounting entries allowed for this event.
Advices
| Advice type | Description | ||
|---|---|---|---|
| UDECA |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CHG_BOOK | CHARGE | DEBIT | |||
| CHG_INCOME | CHARGE | CREDIT |
Advices
No advices allowed for this event.
No accounting entries allowed for this event.
Advices
| Advice type | Description | ||
|---|---|---|---|
| UDECA |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CHG_BOOK | CHARGE | DEBIT | |||
| CHG_INCOME | CHARGE | CREDIT |
Advices
No advices allowed for this event.
No accounting entries allowed for this event.
Advices
| Advice type | Description | ||
|---|---|---|---|
| UDECA |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CHG_BOOK | CHARGE | DEBIT | |||
| CHG_INCOME | CHARGE | CREDIT |
Advices
No advices allowed for this event.
No accounting entries allowed for this event.
Advices
| Advice type | Description | ||
|---|---|---|---|
| UDECA |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| CHG_BOOK | CHARGE | DEBIT | |||
| CHG_INCOME | CHARGE | CREDIT |
Advices
No advices allowed for this event.
No accounting entries allowed for this event.
Advices
| Advice type | Description | ||
|---|---|---|---|
| UDECA |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| ICDT-ACCR-1 | IACR | DEBIT | |||
| ICDT-PNL-1 | IACR | CREDIT | |||
| ICDX-ACCR-1 | IACR | DEBIT | |||
| ICDX-PNL-1 | IACR | CREDIT | |||
| ICMI-ACCR-1 | IACR | CREDIT | |||
| ICMI-PNL-1 | IACR | DEBIT | |||
| ICOD-ACCR-5 | IACR | DEBIT | |||
| ICOD-PNL-4 | IACR | CREDIT | |||
| ICOD-ACCR-4 | IACR | DEBIT | |||
| ICOD-PNL-5 | IACR | CREDIT | |||
| ICQC-ACCR-1 | IACR | DEBIT | |||
| ICQC-PNL-1 | IACR | CREDIT | |||
| ICQC-ACCR-3 | IACR | CREDIT | |||
| ICQC-PNL-3 | IACR | DEBIT | |||
| ICQC-ACCR-4 | IACR | DEBIT | |||
| ICQC-PNL-4 | IACR | CREDIT | |||
| MNS1-PNL-1 | IACR | CREDIT | |||
| MNS1-ACCR-1 | IACR | DEBIT | |||
| MNS2-ACCR-1 | IACR | DEBIT | |||
| MNS2-PNL-1 | IACR | CREDIT | |||
| Expense | IACR | DEBIT | |||
| Paid in advance | IACR | CREDIT |
Credit Interest: Interest Adj Split not Required
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| RULE-PNL-1 | IACR | DEBIT | |||
| RULE-ACCR-1 | IACR | CREDIT | |||
| RULE-PNL_ADJ-1 | IACR_ADJ | DEBIT | |||
| RULE-ACCR-1 | IACR_ADJ | CREDIT |
Credit Interest: Interest Adj Split Required
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| RULE-PNL-1 | IACR | DEBIT | |||
| RULE-ACCR-1 | IACR | CREDIT | |||
| RULE-PNL_ADJ_PREV-1 | IACR_ADJ_PREV | DEBIT | |||
| RULE-ACCR-1 | IACR_ADJ_PREV | CREDIT | |||
| RULE-PNL_ADJ_CURR-1 | IACR_ADJ_CURR | DEBIT | |||
| RULE-ACCR-1 | IACR_ADJ_CURR | CREDIT |
Advices
No advices allowed for this event.
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| ICDB-BOOK-2 | ILIQ | DEBIT | |||
| ICDB-PNL-2 | ILIQ | CREDIT | |||
| ICDB-PNL-1 | ILIQ | DEBIT | |||
| ICDB-BOOK-1 | ILIQ | CREDIT | |||
| ICDB-ACQUIRED-1 | IACQUIRED | DEBIT | |||
| ICDB-BOOK-1 | IACQUIRED | CREDIT | |||
| ICDB-BOOK-2 | IACQUIRED | DEBIT | |||
| ICDB-ACQUIRED-2 | IACQUIRED | CREDIT | |||
| ICDT-ACR_ADJ-1 | IACR_ADJ | DEBIT | |||
| ICDT-PNL_ADJ-1 | IACR_ADJ | CREDIT | |||
| ICDT-ACCR-1 | ILIQ | CREDIT | |||
| ICDT-PNL-2 | ILIQ | CREDIT | |||
| ICDT-BOOK-1 | ILIQ | DEBIT | |||
| ICDT-BOOK-1 | IACQUIRED | DEBIT | |||
| ICDT-BOOK-2 | IACQUIRED | DEBIT | |||
| ICDT-ACQUIRED-2 | IACQUIRED | CREDIT | |||
| ICDT-ACQUIRED-1 | IACQUIRED | CREDIT | |||
| ICDT-BOOK-2 | ILIQ | DEBIT | |||
| ICDT-TPBL-3 | TAX | CREDIT | |||
| ICDT-BOOK-3 | TAX | DEBIT | |||
| ICDX-ACR_ADJ-1 | IACR_ADJ | DEBIT | |||
| ICDX-PNL_ADJ-1 | IACR_ADJ | CREDIT | |||
| ICDX-ACCR-1 | ILIQ | CREDIT | |||
| ICDX-BOOK-1 | ILIQ | DEBIT | |||
| ICDX-BOOK-1 | IACQUIRED | DEBIT | |||
| ICDX-ACQUIRED-1 | IACQUIRED | CREDIT | |||
| ICMA-PNL-1 | ILIQ | DEBIT | |||
| ICMA-PNL-2 | ILIQ | DEBIT | |||
| ICMA-BOOK-2 | ILIQ | CREDIT | |||
| ICMA-BOOK-1 | ILIQ | CREDIT | |||
| ICMA-BOOK-2 | IACQUIRED | CREDIT | |||
| ICMA-ACQUIRED-2 | IACQUIRED | DEBIT | |||
| ICMA-BOOK-1 | IACQUIRED | CREDIT | |||
| ICMA-ACQUIRED-1 | IACQUIRED | DEBIT | |||
| ICMI-PNL-2 | ILIQ | CREDIT | |||
| ICMI-BOOK-2 | ILIQ | DEBIT | |||
| ICMI-ACCR-1 | ILIQ | DEBIT | |||
| ICMI-BOOK-1 | ILIQ | CREDIT | |||
| ICMI-BOOK-2 | IACQUIRED | DEBIT | |||
| ICMI-ACQUIRED-2 | IACQUIRED | CREDIT | |||
| ICMI-PNL_ADJ-1 | IACR_ADJ | DEBIT | |||
| ICMI-BOOK-1 | IACQUIRED | CREDIT | |||
| ICMI-ACQUIRED-1 | ICMI-ACQUIRED-1 | DEBIT | |||
| ICMI-ACR_ADJ-1 | IACR_ADJ | CREDIT | |||
| ICOD-ACR_ADJ-4 | IACR_ADJ | DEBIT | |||
| ICOD-PNL_ADJ-4 | IACR_ADJ | CREDIT | |||
| ICOD-ACR_ADJ-5 | IACR_ADJ | DEBIT | |||
| ICOD-PNL_ADJ-5 | IACR_ADJ | CREDIT | |||
| ICOD-ACCR-5 | ILIQ | CREDIT | |||
| ICOD-BOOK-4 | ILIQ | DEBIT | |||
| ICOD-ACCR-4 | ILIQ | CREDIT | |||
| ICOD-BOOK-5 | ILIQ | DEBIT | |||
| ICOD-BOOK-4 | IACQUIRED | DEBIT | |||
| ICOD-ACQUIRED-4 | IACQUIRED | CREDIT | |||
| ICOD-BOOK-5 | IACQUIRED | DEBIT | |||
| ICOD-ACQUIRED-5 | IACQUIRED | CREDIT | |||
| ICQC-ACR_ADJ-1 | IACR_ADJ | DEBIT | |||
| ICQC-PNL_ADJ-1 | IACR_ADJ | CREDIT | |||
| ICQC-ACR_ADJ-3 | IACR_ADJ | CREDIT | |||
| ICQC-PNL_ADJ-3 | IACR_ADJ | DEBIT | |||
| ICQC-PNL_ADJ-4 | IACR_ADJ | CREDIT | |||
| ICQC-ACR_ADJ-4 | IACR_ADJ | DEBIT | |||
| ICQC-ACCR-1 | ILIQ | CEBIT | |||
| ICQC-BOOK-1 | ILIQ | DEBIT | |||
| ICQC-PNL-2 | ILIQ | CREDIT | |||
| ICQC-BOOK-2 | ILIQ | DEBIT | |||
| ICQC-ACCR-3 | ILIQ | DEBIT | |||
| ICQC-BOOK-3 | ILIQ | CREDIT | |||
| ICQC-ACCR-4 | ILIQ | CREDIT | |||
| ICQC-BOOK-4 | ILIQ | DEBIT | |||
| ICQC-BOOK-1 | IACQUIRED | DEBIT | |||
| ICQC-ACQUIRED-1 | IACQUIRED | CREDIT | |||
| ICQC-BOOK-2 | IACQUIRED | DEBIT | |||
| ICQC-ACQUIRED-2 | IACQUIRED | CREDIT | |||
| ICQC-BOOK-3 | IACQUIRED | CREDIT | |||
| ICQC-ACQUIRED-3 | IACQUIRED | DEBIT | |||
| ICQC-BOOK-4 | IACQUIRED | DEBIT | |||
| ICQC-ACQUIRED-4 | IACQUIRED | CREDIT | |||
| MNS1-BOOK-1 | ILIQ | DEBIT | |||
| MNS1-BOOK-1 | IACQUIRED | DEBIT | |||
| MNS1-ACQUIRED-1 | IACQUIRED | CREDIT | |||
| MNS1-ACCR-1 | ILIQ | CREDIT | |||
| MNS2-ACCR-1 | ILIQ | CREDIT | |||
| MNS2-BOOK-1 | ILIQ | DEBIT | |||
| MNS2-BOOK-1 | IACQUIRED | DEBIT | |||
| MNS2-ACQUIRED-1 | IACQUIRED | CREDIT |
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| RULE-ACCR-1 | ILIQ | DEBIT | |||
| BOOK1 | ILIQ | CREDIT | |||
| RULE-ACCR-1 | IACQUIRED | DEBIT | |||
| BOOK1 | IACQUIRED | CREDIT |
Note
Interest liquidation entries are same for both Interest Adjustment Split Required as ‘Y’ and Interest Adjustment Split Required as ‘N’.
Advices
No advices allowed for this event.
Accounting Entries
No accounting entries allowed for this event.
Advices
| Advice type | Description | ||
|---|---|---|---|
| UDECA |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| TD-PRINC-BOOK | TDACCOUNT | Cr | |||
| TD-PRINC-BOOK | TDOFFSET | Dr | |||
| TD-INT-LIQD | TDOFFSET | Cr | |||
| TD-INT-LIQD | TDINTPIA | Dr |
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| TD-PRINC-BOOK | TDACCOUNT | Cr | |||
| TD-PRINC-BOOK | TDOFFSET | Dr |
This event will have additional entries for the discounted interest.
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| Paid in Advance | TD-INT | Dr | |||
| Customer | TD-INT | Cr |
This event will be defined in the product to give out discounted interest on the extended portion of deposit and it will be used only for this purpose and all other operations of rollover remains as it is. This event is applicable only for Discounted deposits.
Accounting Entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator | |||
|---|---|---|---|---|---|
| Paid in Advance | TD-INT | Dr | |||
| Customer | TD-INT | Cr |
The following accounting entries are processed for each stage of Write-off process on OD account:
Liquidating Accruals
| Dr/Cr | Account | Amount | |||
|---|---|---|---|---|---|
| Dr | Customer (OD account) | Interest accrued (from last liquidation to till date) | |||
| Cr | Interest Receivable | Interest accrued (from last liquidation to till date) |
Reversal Interest Income
| Dr/Cr | Account | Amount | |||
|---|---|---|---|---|---|
| Dr | Interest Income | Interest Income | |||
| Cr | Suspense GL | Interest Income |
Marking Principal Amount as Bad Debit
| Dr/Cr | Account | Amount | |||
|---|---|---|---|---|---|
| Dr | Bad Debits Expense GL | OD Principal | |||
| Cr | Suspense GL | OD Principal |
Balance Transfer of OD Account
| Dr/Cr | Account | Amount | |||
|---|---|---|---|---|---|
| Dr | Interest Receivable | Interest accrued after status change | |||
| Cr | Interest Income Suspense. This will be the GL mapped for the accrual for the new status ‘WROF’ | Interest accrued after status change |
| Dr/Cr | Account | Amount | |||
|---|---|---|---|---|---|
Dr |
Interest Income Suspense |
Amount Paid towards Interest |
|||
Cr |
Interest Income |
Amount Paid towards Interest |
The following accounting entries for crediting to ESCROW GL needs to be maintained.
The system will maintain the accounting entries for collection of tax from the customer as follows:
| Debit/Credit | Accounting Role | Amount Tag | |||
|---|---|---|---|---|---|
| Debit | TD01-BOOK-1 | FATCA_TAX | |||
| Credit | TD01-TPBL-2 | FATCA_TAX |
The system will maintain the accounting entries for computation of tax from the customer as follows:
| Debit/Credit | Accounting Roles | Amount Tag | |||
|---|---|---|---|---|---|
| Debit | TD01-BOOK-1 | FATCA_REFERRAL | |||
| Credit | TD01-ESCROW-2 | FATCA_REFERRAL |
Note
Also note that some of the Amount Tags linked to the Accounting Roles are user defined.