8. Annexure A - Accounting Entries

8.1 Accounting Entries for ILM

This Annexure lists the suggested event-wise accounting entries that can be set up, for the Interest and Charge product applicable for the Integrated Liquidity Management module of Oracle FLEXCUBE.

This chapter contains the following sections:

• Section 8.2, "Events"
• Section 8.3, "Event-wise Accounting Entries for Products"

8.2 Events

You need to set up the following events for a profit product:

	Event Code		Event Description
	ILIQ		Interest Liquidation
	IACR		Interest Accruals
	SWBK		Sweep Booking
	RVSW		Reverse Sweep

8.3 Event-wise Accounting Entries for Products

You can set up various IP products for liquidity management. Some representative products are listed below:

• Pool Header Product – ‘PHR1’
• Pool Reallocation Product – ‘PLC1’

This section contains the following topics:

• Section 8.3.1, "Pool Header Product"
• Section 8.3.2, "Pool Reallocation Product"
• Section 8.3.3, "Sweep and Reverse Sweep"

8.3.1 Pool Header Product

To define a pool header product, you need to check ‘ILM Product’ check box in preference tab at Product level and select ‘ILM Type’ as ‘Pool Lead’.

Consider the below accounting entries table for Pool Header product ‘PHR1’, which provides details about mapping of the accounting role to amount tag:

8.3.1.1 IACR: Interest Accrual

Accounting Entries

	Accounting Role		Amount Tag		Dr/Cr Indicator
	PHR1-PNL-1		IACR		Credit
	PHR1-ACCR-1		IACR		Debit
	PHR1-PNL_ADJ-1		IACR_ADJ		Credit
	PHR1-ACR_ADJ-1		IACR_ADJ		Debit
	PHR1-PNL-2		IACR		Debit
	PHR1-ACCR-2		IACR		Credit
	PHR1-PNL_ADJ-2		IACR_ADJ		Debit
	PHR1-ACR_ADJ-2		IACR_ADJ		Credit

 

8.3.1.2 ILIQ: Interest Liquidation

Accounting Entries

	Accounting Role		Amount Tag		Dr/Cr Indicator
	PHR1-ACCR-1		ILIQ		Credit
	PHR1-BOOK-1		ILIQ		Debit
	PHR1-ACQUIRED-1		IACQUIRED		Credit
	PHR1-BOOK-1		IACQUIRED		Debit
	PHR1-ACQUIRED-2		IACQUIRED		Debit
	PHR1-BOOK-2		IACQUIRED		Credit
	PHR1-ACCR-2		ILIQ		Debit
	PHR1-BOOK-2		ILIQ		Credit
	PHR1-TPBL-3		TAX		Credit
	PHR1-BOOK-3		TAX		Debit
	PHR1-TPBL_ADJ-3		TAX_ADJ		Credit
	PHR1-BOOK-3		TAX_ADJ		Debit

 

8.3.2 Pool Reallocation Product

To define a pool reallocation product, you need to check ‘ILM Product’ check box in preference tab at Product level and select ‘ILM Type’ as ‘Pool Reallocation.’ Also, you need to check the ‘Reallocation through Header’ check box.

Consider the below accounting entries table for Pool Reallocation product ‘PLC1’, which provides details about mapping of the accounting role to amount tag

8.3.2.1 IACR: Interest Accrual

Accounting Entries

	Accounting Role		Amount Tag		Dr/Cr Indicator
	PLC1-PNL-1		IACR		Debit
	PLC1-ACCR-1		IACR		Credit
	PLC1-PNL_ADJ-1		IACR_ADJ		Debit
	PLC1-ACR_ADJ-1		IACR_ADJ		Credit
	PLC1-PNL-2		IACR		Credit
	PLC1-ACCR-2		IACR		Debit
	PLC1-PNL_ADJ-2		IACR_ADJ		Debit
	PLC1-ACR_ADJ-2		IACR_ADJ		Credit

 

8.3.2.2 ILIQ: Interest Liquidation

Accounting Entries

	Accounting Role		Amount Tag		Dr/Cr Indicator
	PLC1-ACCR-1		ILIQ		Credit
	PLC1-BOOK-1		ILIQ		Debit
	PLC1-ACQUIRED-1		IACQUIRED		Credit
	PLC1-BOOK-1		IACQUIRED		Debit
	PLC1-ACQUIRED-2		IACQUIRED		Debit
	PLC1-BOOK-2		IACQUIRED		Credit
	PLC1-ACCR-2		ILIQ		Debit
	PLC1-BOOK-2		ILIQ		Credit
	PLC1-TPBL-3		TAX		Credit
	PLC1-BOOK-3		TAX		Debit
	PLC1-TPBL_ADJ-3		TAX_ADJ		Credit
	PLC1-BOOK-3		TAX_ADJ		Debit

 

8.3.3 Sweep and Reverse Sweep

8.3.3.1 SWBK: Sweep Booking

Accounting Entries

	Accounting Role		Amount Tag		Dr/Cr Indicator
	CHILD		CR_CONT		DR
	PARENT		CR_CONT		CR
	CHILD		DR_CONT		CR
	PARENT		DR_CONT		DR

8.3.3.2 RVSW: Reverse Sweep

Accounting Entries:

	Accounting Role		Amount Tag		Dr/Cr Indicator
	PARENT		CR_CONT		DR
	CHILD		CR_CONT		CR
	CHILD		DR_CONT		DR
	PARENT		DR_CONT		CR