10. Annexure A

This chapter contains the following sections:

• Section 10.1, "Accounting Entries for Consumer Lending"
• Section 10.2, "Events"
• Section 10.3, "Accounting Roles"
• Section 10.4, "Accounting Entries after Securitization"
• Section 10.5, "Amount Tags"
• Section 10.6, "Event-wise Advices"

10.1 Accounting Entries for Consumer Lending

This section contains details of the suggested accounting entries that can be set up, for the Consumer Lending module of Oracle FLEXCUBE. The details of the suggested accounting entries are given event-wise.

10.2 Events

The following is an exhaustive list of events that can take place during the lifecycle of a consumer lending 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
CAMD	Contract Amendment
CLOS	Closure for off balance sheet comp
CLOC	Closure of Commitment
DLINK	Payment made against a loan linked to a revolving commitment contract
DNTC	Delinquency Notice Event
DSBR	Disbursement
INIT	Contract Initiation
ISTM	Interest Statement Event
LCYP	LCY update processing
LIQB	Liquidation Tanking
LSTM	Loan Statement Event
LINK	Linking a Commitment to a loan account
MLIQ	Manual Liquidation
NOVA	Novation
PROV	Provisioning
READ	Readjustment Processing
REOP	Reopen of loan 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
REVL	Reversal of Linked Loan Account
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
INLQ	Intermediary Liquidation
IMST	Intermediary Statement
PWOF	Partial Write Off
TRFR	Transfer
TADJ	Transfer Adjustment
INPL	Interest Payback Liquidation
RINP	Interest Payback Reversal

10.3 Accounting Roles

In this section we have provided a list of sample accounting roles.

Accounting Role	Description
ASSETGL	The Customer GL to which the Loan 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
IN_INTER_STMT	Intermediary Statement
PRINCIPAL_EXP_D	Principal Expense Doubt
LOAN_AC_DOUB	Loan Account Doubt
CONT_W_DOUB	Contingent Write Off Doubt
CONT_SUBS	Contingent Substandard
MAIN_INTEXP_DOUB	Maintenance Interest Expense Doubt
MAIN_INTREC_DOUB	Maintenance Interest Receivable Doubt
MIN_AMT_SCHODUE	Minimum Amount Due Amount for the latest billing period
PAY_BY_SCHODUE	Outstanding amount as of a particular date for the latest bill­ing period
MIN_AMT_OVR_DAYS	Minimum Amount Due that has not been fully paid from a pay by date
SERVICE_ACCOUNT	Service Account
<Main compo­nent>_NEG_<Status>	Negative Interest amount posting for status

The following accounting entries for passed for DSBR event:

Accounting Role	Amount Tag	Dr/Cr
Asset	PRINCIPAL	Dr
CR_SETTLE­MENT_BRIDGE	PRINCIPAL	Cr

Accounting Roles for the YACR Event

Sl No	Accounting Role	Acquisition Type	Role Type
1.	EIMDISCRIA	Discount	Asset
2.	EIMDISCINC	Discount	Asset
3.	EIMPREMPIA	Premium	Asset
4.	EIMPREMEXP	Premium	Asset
5.	EIMINTADJREC	Par	Asset
6.	EIMINTADJINC	Par	Asset

10.4 Accounting Entries after Securitization

The following entries are applicable only for securitization supporting products.

Event: DSBR

Amount Tag	GL Description	Debit/Credit
PRINCIPAL	SPV_SETTL_BRIDGE_DR	Dr
PRINCIPAL	CR_SETTL_BRIDGE	Cr
MAIN_INTRIA	DR_SETTL_BRIDGE	Dr
MAIN_INTRIA	SPV_SETTL_BRIDGE_CR	Cr

 

EVENT: STCH - STATUS CHANGE: NORM - SECR (SECURITIZATION EVENT)

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_OUTSTAND	SPV_SETTL_BRIDGE_DR	Dr
PRINCIPAL_OUTSTAND	LOAN_ACCOUNT	Cr
MAIN_INT_ACCRUED	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_ACCRUED	MAIN_INTREC	Cr
MAIN_INT_OD	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_OD	MAIN_INTINC	Cr
ODPR_PNLTY_OD	SPV_SETTL_BRIDGE_DR	Dr
ODPR_PNLTY_OD	ODPR_PNLTY_INC	Cr
ODIN_PNLTY_OD	SPV_SETTL_BRIDGE_DR	Dr
ODIN_PNLTY_OD	ODIN_PNLTY_INC	Cr
MAIN_INT_RIABAL	MAININT_RIA	Dr
MAIN_INT_RIABAL	SPV_SETTL_BRIDGE_CR	Cr

 

EVENT: STCH -STATUS CHANGE:SECR- NORM (DE-SECURITIZATION/PURCHSE EVENT)

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_OUTSTAND	LOAN_ACCOUNT	Dr
PRINCIPAL_OUTSTAND	SPV_SETTL_BRIDGE_CR	Cr
MAIN_INT_ACCRUED	MAIN_INTREC	Dr
MAIN_INT_ACCRUED	SPV_SETTL_BRIDGE_CR	Cr
MAIN_INT_OD	MAIN_INTREC	Dr
MAIN_INT_OD	SPV_SETTL_BRIDGE_CR	Cr
ODPR_PNLTY_OD	ODPR_PNLTYREC	Dr
ODPR_PNLTY_OD	SPV_SETTL_BRIDGE_CR	Cr
ODIN_PNLTY_OD	ODIN_PNLTYREC	Dr
ODIN_PNLTY_OD	SPV_SETTL_BRIDGE_CR	Cr
MAIN_INT_RIAEXP	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_RIAEXP	MAININT_RIA	Cr

 

EVENT: LIQD (INTEREST) - IF SALE IS HAPPENED IN THE ACCRUAL PERIOD

When Interest is capitalized:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_CAP	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_CAP	MAIN_INTREC	Cr

When Interest is liquidated:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_LIQD	SPV_SETTL_BRIDGE_DR	Dr
MAIN_INT_LIQD	SPV_SETTL_BRIDGE	Cr

When Interest is waived:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_WAVD	SPV_EXPENSE	Dr
MAIN_INT_WAVD	SPV_SETTL_BRIDGE_CR	Cr

When Principal is liquidated:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_LIQD	DR_SETTL_BRIDGE	Dr
PRINCIPAL_LIQD	SPV_SETTL_BRIDGE_CR	Cr

When Principal is waived:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_WAVD	SPV_EXPENSE	Dr
PRINCIPAL_WAVD	SPV_SETTL_BRIDGE_CR	Cr

 

EVENT: ACCR

Amount Tag	GL Description	Debit/Credit
MAIN_INT_ACCR	SPV_ACCR	Dr
MAIN_INT_ACCR	SPV_ACCR	Cr

 

EVENT: ADCH

Amount Tag	GL Description	Debit/Credit
ADCH_CHG_ADCH	DR_SETTL_BRIDGE	Dr
ADCH_CHG_ADCH	SPV_SETTL_BRIDGE_CR	Cr

 

EVENT: VAMB

Amount Tag	GL Description	Debit/Credit
HANDLNG_CHG_LIQD	DR_SETTL_BRIDGE	Dr
HANDLNG_CHG_LIQD	SPV_SETTL_BRIDGE_CR	Cr

 

EVENT: VAMI

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_INCR	SPV_SETTL_BRIDGE_CR	Dr
PRINCIPAL_INCR	CR_SETTL_BRIDGE	Cr

 

EVENT: ROLL

When Principal is increased:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_INCR	SPV_SETTL_BRIDGE_DR	Dr
PRINCIPAL_INCR	CR_SETTL_BRIDGE	Cr

When Interest is liquidated:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_LIQD	DR_SETTL_BRIDGE	Dr
MAIN_INT_LIQD	SPV_SETTL_BRIDGE_CR	Cr

When Principal is liquidated:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_LIQD	DR_SETTL_BRIDGE	Dr
PRINCIPAL_LIQD	SPV_SETTL_BRIDGE_CR	Cr

During Interest rollover:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_ROLL	LOAN_ACCOUNT	Cr
MAIN_INT_ROLL	SPV_SETTL_BRIDGE_DR	Dr

When Principal is waived:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_WAVD	SPV_EXPENSE	Dr
PRINCIPAL_WAVD	SPV_SETTL_BRIDGE_CR	Cr

When Interest is waived:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_WAVD	SPV_EXPENSE	Dr
MAIN_INT_WAVD	SPV_SETTL_BRIDGE_CR	Cr

EVENT-RNOG

When Principal is liquidated:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_LIQD	DR_SETTL_BRIDGE	Dr
PRINCIPAL_LIQD	SPV_SETTL_BRIDGE_CR	Cr

When Interest is liquidated:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_LIQD	DR_SETTL_BRIDGE	Dr
MAIN_INT_LIQD	SPV_SETTL_BRIDGE_CR	Cr

When Principal is waived:

Amount Tag	GL Description	Debit/Credit
PRINCIPAL_WAVD	SPV_EXPENSE	Dr
PRINCIPAL_WAVD	SPV_SETTL_BRIDGE_CR	Cr

When Interest is waived:

Amount Tag	GL Description	Debit/Credit
MAIN_INT_WAVD	SPV_EXPENSE	Dr
MAIN_INT_WAVD	SPV_SETTL_BRIDGE_CR	Cr

10.5 Amount Tags

The following entries are applicable only for securitization supporting products.

Amount Tag	Description
PRINCIPAL_OUTSTAND	Sum of principal overdue and Principal outstanding
MAIN_INT_OD	Sum of Main interest over due
ODPR_PNLTY_OD	Sum of overdue principal penalty component
ODIN_PNLTY_OD	Sum of overdue interest penalty component
MAIN_INT_RIABAL	Balance of RIA (RIA - sum of interest paid previous months + occurred till date)
MAIN_INT_RIAEXP	RIA expected from SPV during Buyback

10.6 Event-wise Advices

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.

BOOK

The system uses this event to enter details of a loan 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

On BOOK event of a commitment contract the following accounting entries are passed:

Accounting Role	Amount Tag	Dr./Cr. Indicator
CONTGL	PRINCI­PAL_FWD	Debit
CONTOFF	PRINCI­PAL_FWD	Credit

INIT

The system uses this event to initiate a loan with a value date as the date of initiation. However, you can not disburse the loan 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	Loan Summary Statement Advice	CL_LOAN_SUM­MARY
COUPON	Coupon Advice	ADV_COUPON

DSBR

This event is marked by the disbursement of the loan 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 entries passed are:

Accounting Role	Amount Tag	Dr /Cr
LOAN_AC	PRINCIPAL	Dr
CR_SETTLE­MENT_BRG	PRINCIPAL	Cr

Note

• The loan account of the customer reports to an internal GL of the bank, determined by the Role to Head mapping done at the product level.
• A settlement bridge account is used since there is a probability of the customer ac­count being present in another system which is capable of interfacing with Oracle FLEXCUBE. During the reconciliation process, the appropriate customer account in the relevant system is credited with the loan amount.

ACCR

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 Interest Accrual

Accounting Role	Amount Tag	Dr /Cr
INT_REC	INT_ACCR	Dr
INT_INC	INT_ACCR	Cr

 

For Penalty Interest Accrual

Accounting Role	Amount Tag	Dr /Cr
PENAL_INT_REC	PENAL_INT_ACCR	Dr
PENAL_INT_INC	PENAL_INT_ACCR	Cr

 

UNBL

This event is triggered to process the movement of unbilled amount from the interest component to unbilled component on the due date of the schedule.

Debit/Credit	Accounting Role	Amount Tag
DR	<Unbilled Component>REC	<Component>_LIQD
CR	<Component>_REC	<Component>_LIQD

INLQ

This event is triggered as a batch process for the Intermediary Liquidation based on the product event advice maintenance. It provides basic information about the Intermediary and the corresponding commission settlement.

Advice Name	Description	Format Name
‘IN_INTER_CR	Intermediary Credit	INTER_CR_ADV

INCH

This event is triggered as a batch process for the Intermediary Liquidation based on the product event class maintenance. It provides basic information about the Intermediary and charge collected because of pre-payment and late payment by the customer.

Advice Name	Description	Format Name
IN_INTER_DR	Intermediary Debit	INTER_DR_ADV

IMST

This event is triggered as per the statement frequency maintained at the Intermediary Level. It provides basic information about the Intermediary and the corresponding commission/charge settlements.

Advice Name	Description	Format Name
IN_INTER_STMT	Intermediary State­ment	IN_INTER_STMT

ALIQ and MLIQ

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

 

Interest Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLE­MENT_BRG	INT_LIQD	Dr
INT_REC	INT_LIQD	Cr
INTERNAL_GL	MAIN_INT_WHLD	Dr
MAIN_INTREC	MAIN_INT_WHLD	Cr

 

Penalty Interest Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLE­MENT_BRG	PENAL_INT_LIQD	Dr
PENAL_INT_REC	PENAL_INT_LIQD	Cr

 

Following are the accounting entries passed for the manual repayment of loan by cash:

Accounting Role	Amount Tag	Dr /Cr
DR_SETTL_BRIDGE	PRINCIPAL_LIQD	DR
LOAN_ACCOUNT	PRINCIPAL_LIQD	CR
DR_SETTL_BRIDGE	MAIN_INT_LIQD	DR
MAIN_INT_REC	MAIN_INT_LIQD	DR

LINK

This event is triggered when a commitment is linked to a consumer lending loan account. LINK event increases the utilization of the commitment amount and the contingent entries passed at the time of INIT is reversed upto the extent of linked amount.

Accounting Role	Amount Tag	Dr./Cr. Indicator
ASSETGL	COMMUTIL_INCR	Credit
ASSETOFF	COMMUTIL_INCR	Debit
DR_SETTL_BRIDGE	<Charge Comp>_LIQD	Debit
CHARGE_COMPO­NENT_INC	<Charge Comp>_LIQD	Credit

DLNK (Delink)

This event is triggered when payment is made against a loan, which is linked to a revolving commitment contract, Delink decreases the utilization of commitment amount.

Accounting Role	Amount Tag	Dr./Cr. Indicator
ASSETGL	COMMUTIL_­DECR	Debit
ASSETOFF	COMMUTIL_­DECR	Credit

STCH

This event is triggered when a status change occurs. It could be a Forward Status Change (FSTC) where the loan 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.

Interest accrual for status ‘ACTIVE’

Accounting Role	Amount Tag	Dr /Cr
INT_REC (Mapped to a Real Asset)	INT_ACCR	Dr
INT_INC (Mapped to a Real Income GL)	INT_ACCR	Cr

 

Interest accrual for status ‘PAST DUE’

Accounting Role	Amount Tag	Dr /Cr
INT_REC (Mapped to a Contingent Asset)	INT_ACCR	Dr
INT_INC (Mapped to a Contingent Liability)	INT_ACCR	Cr

 

CAMD, VAMB and VAMI

These statuses are triggered as a result of making amendments to a loan.

CAMD (Account Amendment)

Any amendment to the parameters of the account will create a new version of the loan. These changes will not have any implications on the financial attributes of the loan.

Advice Name	Description	Format Name
CLAMDADV	Amendment Advice	CL_AM­D_ADV

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:

• Maturity date
• Principal Increase
• Rate change

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
DR_SETTL_BRIDGE	<Charge Comp>_LIQD	Dr
PROC_CHARGEINC	<Charge Comp>_LIQD	Cr

Any change to Rate and Tenor (Maturity Date) will alter the original loan schedules.

ROLL

This event is triggered when a loan is renewed with new terms. Rollover will have either a combination of liquidation and rollover of Principal. It can also have liquidation of Interest and penalty Interest.

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 Interest and Penalty Interest, 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
INTERNAL_GL	MAIN_INT_WHLD	Dr
MAIN_INTREC	MAIN_INT_WHLD	Cr

You may encounter the following cases:

Case 1: Rollover only Principal Outstanding; Pay Interest & Penalty Outstanding

In this case, both ‘PRINCIPAL_LIQD’ and ‘PRINCIPAL_ROLL’ will be zero and hence the ‘LOAN ACCOUNT’ balance is not affected.

The Outstanding Interest and Principal will be liquidated. Referring to the accounting entries above,

• INT_LIQD = Interest Outstanding
• PENAL_INT_LIQD = Penalty Interest Outstanding
• LIQD_AMT = INT_LIQD + PENAL_INT_LIQD (If Netting is ‘ON’ and both have the same Settlement Account).

Case 2: Rollover Principal + Interest Outstanding; Pay Penalty Outstanding

In this case,

• PRINCIPAL_LIQD = 0,
• PRINCIPAL_ROLL = INT_ROLL (which is the Interest Rolled over as Principal);
• PENAL_INT_LIQD = Penalty Interest Outstanding
• LIQD_AMT = PENAL_INT_LIQD (If Netting is on and both have the same Settlement Account).

Case 3: Rollover Principal + Interest + Penalty 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 loan 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 Loan Account.

SROL – Special Roll-over

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

RNOG – Re-negotiation

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

NOVA – Novation

This event is triggered when a primary customer is changed.

Advice Name	Description	Format Name
CLAMDADV	Amendment Advice	CL_AM­D_ADV

REVC – Loan Reversal

This event is triggered when a loan 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

REVP - Payment Reversal

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 Interest Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLE­MENT_BRG	- INT_LIQD	Dr
INT_REC	- INT_LIQD	Cr

 

Reversal of Penalty Interest Repayment

Accounting Role	Amount Tag	Dr /Cr
DR_SETTLE­MENT_BRG	- PENAL_INT_LIQD	Dr
PENAL_INT_REC	- PENAL_INT_LIQD	Cr

 

REVN – Periodic Rate Revision

This will change the Floating Interest Rates based on the periodicity that you maintain.

Advice Name	Description	Format Name
CL_INT_STMT	Interest Statement Advice	CL_INT_STMT
RAT­ECH_ADV	Rate Change Advice	CL_RTCH­_ADV

 

ARVN – Automatic Rate Revision

This will change the Floating Rate as and when the rate changes.

Advice Name	Description	Format Name
CL_INT_STMT	Interest Statement Advice	CL_INT_STMT
RAT­ECH_ADV	Rate Change Advice	CL_RTCH­_ADV

UDCH – User Defined Element Value Changes

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.

YACR – Yield to Maturity Discount Accrual

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

CLIQ – Charge Liquidation

This event triggers the liquidation of charges applicable to the loan 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

CLOC Event

Accounting Role	Amount Tag	Dr./Cr. Indicator
CONTGL	COMM_UNU­TIL	Credit
CONTOFF	COMM_UNU­TIL	Debit

CLOS Event

In case of loan account closure, system will have to move the amount available from service account to the customers settlement account.

Accounting Role	Amount Tag	Dr./Cr. Indicator
CR_SETTL_BRIDGE	CRED­IT_BAL	Credit
SERVICE_AC­COUNT	CRED­IT_BAL	Debit

 

Accounting Entries for RML – Reverse Mortgage Loan

DSBR Event

Accounting Role	Amount Tag	Dr/Cr
LOAN_ACCOUNT	PRINCIPAL	Dr
CR_SET­TL_BRIDGE	PRINCIPAL	Cr

ACCR Event

Accounting Role	Amount Tag	Dr/Cr
MAIN_INTREC	MAIN_INT_ACCR	Dr
MAIN_INTINC	MAIN_INT_ACCR	Cr

MLIQ/ALIQ Event

Accounting Role	Amount Tag	Dr/Cr
DR_SET­TL_BRIDGE	PRINCIPAL_LIQD	Dr
LOAN_ACCOUNT	PRINCIPAL_LIQD	Cr
DR_SET­TL_BRIDGE	PRINCIPAL_EX­CESS	Dr
PRINCIPALPAY	PRINCIPAL_EX­CESS	Cr
PRINCIPALEXP	PRINCIPAL_WAVD	Dr
LOAN_ACCOUNT	PRINCIPAL_WAVD	Cr
DR_SET­TL_BRIDGE	MAIN_INT_LIQD	Dr
MAIN_INTREC	MAIN_INT_LIQD	Cr
MAIN_INTEXP	MAIN_INT_WAVD	DR
MAIN_INTREC	MAIN_INT_WAVD	CR

 

PWOF-Partial Write Off

This event triggers the Partial Write Off in CL. You need to set up the following entries for this event:

Account Role	Amount Tag	Dr/Cr
PRINCIPAL_EXP_D	PRINCIPAL_PWOF	Debit
LOAN_AC_DOUB	PRINCIPAL_PWOF	Credit
CONT_W_DOUB	MAIN_INT_PWOF_­CONT	Debit
CONT_SUBS	MAIN_INT_PWOF_­CONT	Credit
MAIN_INTEXP_DOUB	MAIN_INT_PWOF	Debit
MAIN_INTREC_DOUB	MAIN_INT_PWOF	Credit

AUTH Event

The event is sent when any asset is processed to be taken over and authorized.

Advice Name	Description
CL_TKOVER	Take Over Advice

TRFR Event

This event triggers the transfer of loans. You need to set up the following entries for the event:

Transferring Account Entries

Account Role	Amount Tag	Dr/Cr
LOAN_AS­SET_GL	PRINCIPAL_OUTSTAND_TRFR_OBRN	Credit
INT_RECV_GL	MAIN_INT_OUTSTAND_TRFR_OBRN	Credit
LOAN_AS­SET_GL	PRINCIPAL_OUTSTAND_TRFR_NBRN	Debit
INT_RECV_GL	MAIN_INT_OUTSTAND_TRFR_NBRN	Debit

 

In case of any interest component say <COMP_NAME>, penalty or charge component for the product with accrual then the following account entries are maintained:

Account Role	Amount Tag	Dr/Cr
OTH_INT_IN­COME_GL	<COMP_NAME>_INCOME_TRFR_OBRN	Debit
OTH_INT_REC_GL	<COMP_NAME>_OUTSTAND_TRFR_O­BRN	Credit
OTH_INT_IN­COME_GL	<COMP_NAME>_INCOME_TRFR_NBRN	Credit
OTH_INT_REC_GL	<COMP_NAME>_OUTSTAND_TRFR_NBRN	Debit

Transfer of Discounted Loans

If the loan account transferred is a discounted loan then the accounting entries for the transfer event is maintained for the main interest.

Account Role	Amount Tag	Dr/Cr
LOAN_ASSET_GL	PRINCIPAL_OUTSTAND_TRFR_OBRN	Credit
LOAN_ASSET_GL	PRINCIPAL_OUTSTAND_TRFR_NBRN	Debit
INT_REC_AD­V_GL	MAIN_INT_RIA_TRFR_OBRN	Debit
INT_REC_AD­V_GL	MAIN_INT_RIA_TRFR_NBRN	Credit

Transfer of Commitments

When a commitment is transferred then the accounting entries for the transfer event is maintained as following:

Account Role	Amount Tag	Dr/Cr
ASSET_GL	PRINCIPAL_FWD_TRFR_O­BRN	Credit
ASSETOFF	PRINCIPAL_FWD_TRFR_O­BRN	Debit
ASSET_GL	PRINCIPAL_FWD_TRFR_NBRN	Debit
ASSETOFF	PRINCIPAL_FWD_TRFR_NBRN	Credit

A transfer advice attached with event TRFR displays the account number, old and new branches, transfer date, the loan 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
CL_TR­FR_ADV	Transfer Advice	CL_TR­FR_ADV

TADJ Event

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
MAIN_INT_INC	MAIN_INT_ADJINC_TADJ_O­BRN	Debit
MAIN_INT_INC	MAIN_INT_ADJINC_TADJ_NBRN	Credit

BADJ Event

During Value Dated Amendment, Manual Liquidation or Rate Revision, main interest can be adjusted and credited to customer’s settlement account. Accounting entries supporting this event are as below:

Account Role	Amount Tag	Dr/Cr
DR_SETTL_BRIDGE	MAIN_INT_DRLQ	DEBIT
MAIN_INT_RIA	MAIN_INT_DRLQ	CREDIT
MAIN_INT_RIA	MAIN_INT_DRLQ	DEBIT
CR_SETTL_BRIDGE	MAIN_INT_DRLQ	CREDIT

Accounting Entries for Negative Interest

ACCR Event

Accounting Role	Amount Tag	Dr/Cr
<Main Compo­nent>EXP	<Main Component>_NEG_ACCR	Debit
<Main Compo­nent>PAY	<Main Component>_NEG_ACCR	Credit

 

RACR Event

Accounting Role	Amount Tag	Dr/Cr
<Main Compo­nent>EXP	<Main Component>_NEG_RAC­R_REAL	Credit
<Main Compo­nent>PAY	<Main Component>_NEG_RAC­R_REAL	Debit

 

ALIQ Event

Accounting Role	Amount Tag	Dr/Cr
<Main Component>PAY	<Main Compo­nent>_NEG_LIQD	DEBIT
CR_SETTLEMENT_BRIDGE	<Main Compo­nent>_NEG_LIQD	CREDIT
<Main Component>PAY	<Main Compo­nent>_NEG_CAP	DEBIT
LOAN_ACCOUNT	<Main Compo­nent>_NEG_CAP	CREDIT

MLIQ Event

Accounting Role	Amount Tag	Dr/Cr
<Main Component>PAY	<Main Compo­nent>_NEG_LIQD	DEBIT
CR_SETTLEMENT_BRIDGE	<Main Compo­nent>_NEG_LIQD	CREDIT

ROLL Event

Accounting Role	Amount Tag	Dr/Cr
<Main Component>PAY	<Main Compo­nent>_NEG_ROLL	DEBIT
LOAN_ACCOUNT	<Main Compo­nent>_NEG_ROLL	CREDIT
<Main Component>PAY	<Main Compo­nent>_NEG_LIQD	DEBIT
CR_SETTLE­MENT_BRODGE	<Main Compo­nent>_NEG_LIQD	CREDIT

The negative interest amount of the main interest is credited to the customer or rolled over.

During rollover the amount will be credited into the loan account asset GL by reducing principal of the new rolled over contract.

Accrual Entries for Negative Value

ACCR

Accounting Role	Amount Tag	Dr/Cr
<Main Component>REC	<Main Component>_ ACCR	DEBIT
<Main Component>INC	<Main Component>_ ACCR	CREDIT
<Main Component>EXP	<Main Compo­nent>_NEG_ACCR	DEBIT
<Main Component>PAY	<Main Compo­nent>_NEG_ACCR	CREDIT

RACR

Accounting Role	Amount Tag	Dr/Cr
<Main Component>REC	<Main Compo­nent>_RACR_REAL	DEBIT
<Main Component>INC	<Main Compo­nent>_RACR_REAL	CREDIT
<Main Component>EXP	<Main Compo­nent>_NEG_RACR_­REAL	CREDIT
<Main Component>PAY	<Main Compo­nent>_NEG_RACR_­REAL	DEBIT

Accrual amount for negative amount tag will be posted with absolute value.

During the accrual period if there is a change from positive to negative then system will reverse out the positive accrual in the receivable and income of RACR. After the reversal the negative amount will be accrued into payable based on the amount tag.

If there is a change from negative to positive then system will reverse out the negative accrual in the payable and expense based on the amount tag <Main Component>_NEG_RACR.