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:

• “MB Events” on page 1
• “Accounting Entries ” on page 1
• “Advices” on page 5
• “Notification” on page 5

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