7. Accounting Entries and Advices

This Annexure contains details of the suggested accounting roles and events related to the MB module of Oracle FLEXCUBE. The annexure lists details of the suggested accounting entries, event-wise. Supporting Advices and Notifications are also listed in this chapter in the following sections:

7.1 MB Events

The following is an exhaustive list of events that are part of millionaire certificate product maintenance. In the subsequent paragraphs we shall examine the accounting entries for each of the events listed below.

Event Code Event Description
BOOK MC/LMC Book
INIT MC/LMC Issuance
RIMC MC/LMC Re-issuance
WIMC MC Issuance to winners
LIQD MC/LMC Liquidation
ROLL LMC rollover
LMCA LMC Monthly amortization
PROV MC Monthly provision
CLOS LMC Closure
REVR Reversal

7.2 Accounting Entries

No accounting entries are maintained for BOOK and CLOS events. The accounting entries are maintained for other events as mentioned below:

7.2.1 MC Issuance – Cash/Cheque/Credit Card/Account transfer

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
INIT MC_CUST_AC_GL Dr CERT_AMT Certificate value * No. of certificates
INIT MC_CUST_AC_GL Dr <Charge­Class>_AMT Issuance charge
INIT MC_LIAB_GL Cr CERT_AMT Certificate value * No. of certificates
INIT <Charge­Class>_INC Cr <Charge­Class>_AMT Issuance charge

7.2.2 MC Re-issuance

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
RIMC MC_CUST_AC_GL Dr <Charge­Class>_AMT Re-Issuance charge
RIMC <Charge­Class>_GL Cr <Charge­Class>_AMT  

7.2.3 MC Issuance to winners

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
WIMC HO_AC_CPC Dr CERT_AMT Certificate value * No. of certifi­cates
WIMC MC_LIAB_GL Cr CERT_AMT  

7.2.4 MC Liquidation/Encashment

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
LIQD MC_LIAB_GL Dr CERT_AMT Certificate value * No. of certificates
LIQD MC_CUST_AC_GL Cr CERT_AMT  
LIQD MC_CUST_AC_GL Dr <Charge­Class>_AMT Pre-encashment fee
LIQD MC_INCOME_GL Cr <Charge­Class>_AMT  

7.2.5 MC Monthly Provisioning

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
PROV MC_EXP_GL Dr PROV_AMT Monthly provision amount. This would trigger an interbranch accounting entry (Debit the local branch and credit the HO).
PROV MC_PROV_GL Cr PROV_AMT

7.2.6 MC Reversal

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
REVR MC_CUST_AC_GL Dr CERT_AMT Certificate value * No. of certificates (Negative amount)
REVR MC_LIAB_GL Cr CERT_AMT Certificate value * No. of certificates (Negative amount)

7.2.7 LMC Issuance

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
INIT LMC_ASSET_GL Dr CERT_AMT Certificate value *
INIT LMC_LIAB_GL Cr CERT_AMT No. of certificates
INIT MC_CUST_AC_GL Dr INT_AMT Issuance price *
INIT LMC_AD­V_INT_GL Cr INT_AMT No. of LMC issued

7.2.8 LMC Manual Roll-over

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
ROLL MC_CUST_AC_GL Dr INT_AMT Issuance price * No. of LMC issued
ROLL LMC_AD­V_INT_GL Cr INT_AMT  

7.2.9 LMC Cancellation

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
LIQD LMC_LIAB_GL Dr CERT_AMT Certificate value * No. of certificates
LIQD LMC_ASSET_GL Cr CERT_AMT  
LIQD LMC_ADV_INT_GL Dr UNAMOR­TIZED_INT_AMT Unamortized inter­est amount
LIQD LMC_INT_IN­COME_GL Cr UNAMOR­TIZED_INT_AMT  

7.2.10 LMC Monthly Amortization

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
LMCA LMC_ADV_INT_GL Dr AMOR­TIZE_INT_AMT Amortized inter­est amount
LMCA LMC_INT_IN­COME_GL Cr AMOR­TIZE_INT_AMT  

7.2.11 LMC Reversal

Event Accounting Role Dr/Cr Ind Amount tag Amount tag Description
REVR LMC_ASSET_GL Dr CERT_AMT Certificate value * (Negative Amount)
REVR LMC_LIAB_GL Cr CERT_AMT No. of certificates (Negative Amount)
REVR MC_CUST_AC_GL Dr INT_AMT Issuance price *  (Negative Amount)
REVR LMC_AD­V_INT_GL Cr INT_AMT No. of LMC issued (Negative Amount)

 

7.3 Advices

System supports the below mentioned advices.

Event Advice Name Advice Description Supported Field Tags Field Tag Description
INIT/ RIMC/ WIMC MB_ISSUE Millionaire Certificate Issu­ance _CUST-NAME1_ Customer Name
_BRANCH-NAME_ Branch Name
_BOOK_DATE_ Booking Date
_VALUE_DATE_ Value Date
_ORIGINAL_PURCHASE_­DATE_ Original Purchase Date
_CERT_START_NUM_ Certificate Start Num­ber
_CERT_END_NUM_ Certificate End Num­ber
_NUM_CERT_ Number of Certificates
_CERT_AMT_ Certificate Amount
_CONTROL_NUM_ Control Number
_CONTRACT_REF_NO_ Contract Reference Number

7.4 Notification

System supports gateway notification for the below mentioned events:

Event Code Event Description
INIT MC/LMC Issuance
RIMC MC/LMC Re-issuance
WIMC MC Issuance to winners
LIQD MC/LMC Liquidation
ROLL LMC rollover