5. Annexure A - Accounting Entries

5.1 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 5.2, "Events"
• Section 5.3, "Event-wise Accounting Entries for Products"

5.2 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

5.3 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 5.3.1, "Pool Header Product"
• Section 5.3.2, "Pool Reallocation Product"
• Section 5.3.3, "Sweep and Reverse Sweep"

5.3.1 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:

5.3.1.1 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

 

5.3.1.2 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

 

5.3.2 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

5.3.2.1 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

 

5.3.2.2 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

 

5.3.3 Sweep and Reverse Sweep

5.3.3.1 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

5.3.3.2 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