This section contains details of the suggested accounting entries that can be set up, for the Leasing 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 a leasing contract. In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below.
| Event Code | Event Description | Additional Remarks | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| BOOK | Booking | This event will be triggered on capturing the lease contract. The contingents will be booked if the lease contract is forward dated. | ||||||||
| INIT | Contract Initiation | This event will be triggered on the value date of the Contract. | ||||||||
| DSBR | Disbursement | For a Financial lease, On first DSBR the principal would be disbursed and down payment will also be collected. | In case of a forward dated lease contract, the contingent entries will be reversed | Also, in case of payment by advance, the first schedule payment would be liquidated. | For an Operational lease, there would not be any principal disbursement Only down payment would be collected. On Value date of the lease account, DSBR would fire for Down payment. | Also, in case of payment by advance, the first schedule payment would be liquidated. | In case of operational lease there won’t be any Disbursement schedules. | |||
| MLIQ | Manual Liquidation | This event is triggered on manual payment of a schedule. This can be triggered from Manual Payment Screen | ||||||||
| ALIQ | Auto Liquidation | This event is triggered on Automatic payment of a schedule. This can be triggered from Batch | ||||||||
| ACCR | Accrual | This event will be triggered based on the frequency maintained at the product level. | ||||||||
| VAMB | Value date Amendment Booking | This event is fired when financial details of a contract is changed | Principal Increment | Interest rate change | Residual Amount change | Maturity Date Change | ||||
| VAMI | Value date Amendment Initiation | This event is fired on initiation of a value dated amendment. | ||||||||
| REVN | Rate Revision | For Financial lease with floating rate type, revision should happen periodically | ||||||||
| STCH | Status Change | This event is triggered when a status change occurs. | ||||||||
| REVC | Contract Reversal | This event is triggered when a loan is withdrawn. | ||||||||
| REVP | Reversal of Payment | The latest payment made, both auto and manual, will be reversed during this event. | ||||||||
| SCHR | Schedule Regeneration | This event would fire during the Last DSBR for populating the EMI schedules. | ||||||||
| PROV | Provisioning | This event would fire during provisioning. This is applicable only for financial lease. | ||||||||
| CLOL | Account Closure | This event would fire during the lease account closure (Financial lease account with residue status). |
This section provides the list of accounting roles and its description.
| Account Role | Description | ||
|---|---|---|---|
| CONTGL | Contingent General Ledger | ||
| CONTOFF | Contingent | ||
| LOAN_AC | Loan Account | ||
| CR_SETTL_BRIDGE(Dealer Ac) | Credit Settlement Bridge | ||
| CR_SETTL_BRIDGE (Customer ac) | Credit Settlement Bridge | ||
| CR_SETTL_BRIDGE | Credit Settlement Bridge | ||
| <component>_REC | Component Receivable | ||
| <component>_INC | Component Income | ||
| DR_SETTL_BRIDGE | Debit Settlement Bridge | ||
| CR_SETTLEMENT_BRG | Credit Settlement Bridge | ||
| FAWIPACC | Work-In-Progress Account |
This section provides the list of amount tags and its description.
| Amount Tag | Description | ||
|---|---|---|---|
| PRINCIPAL_FWD | Principal Forward | ||
| PRINCIPAL_FWD (Reversing of contingents) | Principal Forward | ||
| PRINCIPAL | Principal | ||
| PRINCIPAL_DOWNPMNT | Principal Down Payment | ||
| MAIN_INT_DOWNPMNT | Main Interest Down Payment | ||
| PRINCIPAL_LIQD (First EMI) | Principal Liquidation | ||
| <component>_ACCR | Accrual | ||
| PRINCIPAL_LIQD | Principal Liquidated | ||
| <component>_LIQD | Liquidation | ||
| PRINCIPAL_INCR | Principal Increased | ||
| RESIDUAL_AMT | Residual Amount |
This section lists suggested accounting entries across events for financial and operational lease products. This section contains the following topics:
The following accounting entries and advices can be set up for financial lease products.
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| CONTGL | PRINCIPAL_FWD | Debit | |||
| CONTOFF | PRINCIPAL_FWD | Credit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| CONTGL | PRINCIPAL_FWD | Debit | |||
| CONTOFF | PRINCIPAL_FWD | Credit |
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| CONTGL | PRINCIPAL_FWD (Reversing of contingents) | Credit | |||
| CONTOFF | PRINCIPAL_FWD | Debit | |||
| LOAN_AC | PRINCIPAL | Debit | |||
| CR_SETTL_BRIDGE(Dealer Ac) | PRINCIPAL | Credit | |||
| LOAN_AC | PRINCIPAL_DOWNPMNT | Credit | |||
| CR_SETTL_BRIDGE (Customer ac) | PRINCIPAL_DOWNPMNT | Debit | |||
| LOAN_AC | PRINCIPAL_LIQD (First EMI) | Credit | |||
| CR_SETTL_BRIDGE | PRINCIPAL_LIQD (First EMI) | Debit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| CONTGL | PRINCIPAL_FWD (Reversing of contingents) | Credit | |||
| CONTOFF | PRINCIPAL_FWD | Debit | |||
| LOAN_AC | PRINCIPAL | Debit | |||
| CR_SETTL_BRIDGE(Dealer Ac) | PRINCIPAL | Credit | |||
| LOAN_AC | PRINCIPAL_DOWNPMNT | Credit | |||
| CR_SETTL_BRIDGE (Customer ac) | PRINCIPAL_DOWNPMNT | Debit |
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| <component>_REC | <component>_ACCR | Debit | |||
| <component>_INC | <component>_ACCR | Credit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| <component>_REC | <component>_ACCR | Debit | |||
| <component>_INC | <component>_ACCR | Credit |
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| LOAN_AC | PRINCIPAL_LIQD | Credit | |||
| DR_SETTL_BRIDGE | PRINCIPAL_LIQD | Debit | |||
| <component>_REC | <component>_LIQD | Credit | |||
| DR_SETTL_BRIDGE | <component>_LIQD | Debit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| LOAN_AC | PRINCIPAL_LIQD | Credit | |||
| DR_SETTL_BRIDGE | PRINCIPAL_LIQD | Debit | |||
| <component>_REC | <component>_LIQD | Credit | |||
| DR_SETTL_BRIDGE | <component>_LIQD | Debit |
Advices
No accounting entries for this event.
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| LOAN_AC | PRINCIPAL_INCR | Debit | |||
| CR_SETTLEMENT_BRG | PRINCIPAL_INCR | Credit | |||
| LOAN_AC | PRINCIPAL_DOWNPMNT | Credit | |||
| DR_SETTL_BRIDGE(Customer ac) | PRINCIPAL_DOWNPMNT | Debit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| LOAN_AC | PRINCIPAL_INCR | Debit | |||
| CR_SETTLEMENT_BRG | PRINCIPAL_INCR | Credit | |||
| LOAN_AC | PRINCIPAL_DOWNPMNT | Credit | |||
| DR_SETTL_BRIDGE(Customer ac) | PRINCIPAL_DOWNPMNT | Debit |
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| FAWIPACC | RESIDUAL_AMT | Debit | |||
| LOAN_AC | RESIDUAL_AMT | Credit | |||
| INT_INC | INTEREST_RV | Debit | |||
| INT_REC | INTEREST_RV | Credit |
The Accounting Entries for this event will be in negative amounts.
The Accounting Entries for this event will be the same as that of ALIQ & MLIQ.
The following accounting entries and advices can be set up for operational lease products.
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| LOAN_AC | MAIN_INT_DOWNPMNT | Credit | |||
| DR_SETTL_BRIDGE | MAIN_INT_DOWNPMNT | Debit | |||
| LOAN_AC | <component>__LIQD (First EMI) | Credit | |||
| DR_SETTL_BRIDGE | <component>__LIQD (First EMI) | Debit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| LOAN_AC | MAIN_INT_DOWNPMNT | Credit | |||
| DR_SETTL_BRIDGE | MAIN_INT_DOWNPMNT | Debit |
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| <component>_REC | <component>_ACCR | Debit | |||
| <component>_INC | <component>_ACCR | Credit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| <component>_REC | <component>_ACCR | Debit | |||
| <component>_INC | <component>_ACCR | Credit |
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| <component>_REC | <component>_LIQD | Credit | |||
| DR_SETTL_BRIDGE | <component>_LIQD | Debit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| <component>_REC | <component>_LIQD | Credit | |||
| DR_SETTL_BRIDGE | <component>_LIQD | Debit |
Payment Type: Payment by Advance
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| LOAN_AC | MAIN_INT_DOWNPMNT | Credit | |||
| DR_SETTL_BRIDGE | MAIN_INT_DOWNPMNT | Debit |
Payment Type: Payment by Arrears
| Account Role | Amount Tag | Dr/Cr | |||
|---|---|---|---|---|---|
| LOAN_AC | MAIN_INT_DOWNPMNT | Credit | |||
| DR_SETTL_BRIDGE | MAIN_INT_DOWNPMNT | Debit |
The Accounting Entries for this event will be in negative amounts.
The Accounting Entries for this event will be the same as that of ALIQ & MLIQ.
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.
The system uses this event to enter details of a lease 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 |
This event is marked by the disbursement of the lease 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 accrual of the various components will be triggered based on the accrual parameters you maintain at the product level.
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 |
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 |
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 loan schedules.
The following is an exhaustive list of SDEs that are supported for LE Module:
| Name | Description | ||
|---|---|---|---|
| CUSTOMER_CREDIT_RATING | Holds the Credit Rating information of Customer |
The ‘Customer Credit Rating’ field at the Customer level will be used as a SDE CUSTOMER_CREDIT_RATING for defining status change rules. This will also be available for provision rule definition at the LE product level.