10. Annexure B - Accounting Entries and Advices

This chapter contains the following sections:

Section 10.1, "Accounting Entries for Deposits "
Section 10.2, "Deposits Events"
Section 10.3, "Amount Tags"
Section 10.4, "Accounting Roles"
Section 10.5, "Event-wise Accounting Entries and Advices"

10.1 Accounting Entries for Deposits

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

10.2 Deposits Events

The following is an exhaustive list of events that can take place during the lifecycle of a deposit contract. In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below.

Event Code	Event Description	Remarks
BOOK	Contingent entries are passed at the time of Booking a future valued contract. This corresponds to Event - Booking. If a contract with value date as the system date or with a back value date is input these entries are not passed.	All Types
INIT	The actual take down entries passed on the value date of the contract correspond to Initiation.	All Types
LIQD	Liquidation of contract/schedules.	All Types
ACCR	Accrual of various components for a contract	All Types
ROLL	Rollover of Contract	All Types
STCH	Status Change	All Types
NOTC	Billing of Notice	All Types
CAMD	Contract Amendment	All Types
VAMB	Value Dated Amendment Booking	All Types
VAMI	Value Dated Amendment Initiation	All Types
REVN	Rate Revision
REAS	Reassign User
RESD	Reversal of Residual Accrual In case the status of a contract changes to Non Accrual basis, all the accrued amounts are reversed using this Event Code.
REVC	Contract Reversal
REVP	Reversal of Payment
SPRO	Provisioning
SPWB	Write Back

10.3 Amount Tags

The amount tags listed below are hard-coded in Oracle FLEXCUBE.

In addition to these you can define amount tags as per your requirements for interest and charges that will be attached to the product.

Amount Tag	Description
COMMUTIL_DECR	Commitment Amount Reinstated
COMMUTIL_INCR	Commitment amount Utilized
INT_DISC_ADJ	Discounted Interest Adjusted
PRINCIPAL	Principal Amount
PRINCIPAL_ADDL	Additional Principal
PRINCIPAL_DECR	Decrease in principal on amendment
PRINCIPAL_FWD	Forward takedown amount
PRINCIPAL_INCR	Increase in principal on amendment
PRINCIPAL_LIQD	Principal Amount Liquidated
PRINCIPAL_ROLL	Principal amount rolled over
PRINCIPAL_XFWD	Principal Amount Reclassified
PRINCIPAL_XREV	Principal Amount Unclassified
PRO_AMT	Provision Amount
ROLLOVER_AMT	Rollover Amount
WB_AMT	Write Back Amount

10.4 Accounting Roles

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

Accounting Role	Description	Role Type
LIABGL	Liability GL for Deposits	Liability
INTEXP	Interest	Expense
RFEEINC	Roll Fees	Income
FWDLIABGL	GL for future dated deposits	Contingent Asset
FWDLIABOFF	Offset for Future dated deposits	Contingent Asset
PENPRCLSINC	Penalty on Preclosure	Contingent Asset
INTERESTPAY	Interest Payable	Contingent Liability
INTERESTEXP	Interest on Deposits	Expense
INTERESTAQP	Acquired Interest Payable	Liability
EXDPAY		Contingent Liability
CHGINC	Charges on Income	Income
FATAX1_EXP	Tax expense role for FATAX1	Expense
FRTAXS_PAY	Tax payable role for FRTAXS	Liability
INTPIA	Fixed rate Interest	Asset
Accounting Role	Description	Role Type
VAMBFEESINC	Value dated Amendment Booking Fees	Income
BFEEEXP	Book Fees	Income

Note

In the accounting roles listed above the prefixes INT (Interest), PEN (Penalty), CHG (Charge) are ICCF components. The suffixes stand for:

10.5 Event-wise Accounting Entries and Advices

This section contains the following topics:

Section 10.5.1, "Accounting Entries and Advices"
Section 10.5.2, "Product Type-Deposit, Bearing, Normal"
Section 10.5.3, "Product Type-Deposit, Bearing, Amortized"
Section 10.5.4, "Product Type-Deposit, Bearing, Capitalized"

10.5.1 Accounting Entries and Advices

Suffix	Description
AQP	Acquired interest payable
EXP	Expense
INC	Income
PIA	Payable in advance
PAY	Payable

In the subsequent sections we have defined suggested accounting entries and advices for each of the events in the life-cycle of deposit. Samples of accounting entries, advices, and events have been given for four different types of interest schedules for deposits:

Deposit, bearing, normal
Deposit, bearing, amortized
Deposit, bearing, capitalized
Clustered deposit

Note

Also note that some of the Amount Tag’s linked to Accounting roles are user defined.

10.5.2 Product Type-Deposit, Bearing, Normal

The preferences set for this product are as follows:

The payment type for this product is of Bearing type
The type of repayment schedule is Normal type.
Forward dating is allowed for the product.

BOOK: Booking

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
FWDLIABOFF	PRINCIPAL_FWD	Debit
FWDLIABGL	PRINCIPAL_FWD	Credit
CUSTOMER	CHG1	Debit
CHGINC	CHG1	Credit

Advices

Advice Name	Description
PAYMENT_MESSAGE	Payment Message
DEAL_SLIP	Contract Advice

INIT: Initiation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	PRINCIPAL	Debit
LIABGL	PRINCIPAL	Credit
FWDLIABGL	PRINCIPAL_FWD	Debit
FWDLIABOFF	PRINCIPAL_FWD	Credit
CHGINC	CHG1	Credit
CUSTOMER	CHG1	Debit

Advices

Advice Name	Description
CONT_ADV	Contract Advice
PAYMENT_MESSAGE	Payment Message
COD	Certificate Of Deposit

LIQD: Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	PRINCIPAL_LIQD	Credit
LIABGL	PRINCIPAL_LIQD	Debit
Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	EXD_LIQD	Credit
EXDPAY	EXD_LIQD	Debit
INTERESTPAY	INT_LIQD	Debit
CUSTOMER	INT_LIQD	Credit

Advices

Advice Name	Description
PAYMENT_MESSAGE	Payment Message
BILNOTC	Billing Notice

ACCR: Accrual

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
EXDEXP	EXD_ACCR	Debit
EXDPAY	EXD_ACCR	Credit
INTEXP	INT_ACCR	Debit
INTERESTPAY	INT_ACCR	Credit

Additional Accounting Entries for Negative Interest allowed Product

Accounting Role	Amount Tag	Dr./Cr. Indicator
NegativeInterest CompREC	Negative Interest Comp_ACCR	Debit
NegativeInterest CompINC	Negative Interest Comp_ACCR	Credit

Advices

No advices allowed for this event. LIQD: Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	PRINCIPAL_LIQD	Credit
LIABGL	PRINCIPAL_LIQD	Debit
CHGINC	CHG3	Credit
CUSTOMER	CHG3	Debit
EXDPAY	EXD_LIQD	Debit
CUSTOMER	EXD_LIQD	Credit
LIABGL	EXD_ROLL	Credit
EXDPAY	EXD_ROLL	Debit
CUSTOMER	INT_LIQD	Credit
INTERESTPAY	INT_LIQD	Debit
INTERESTPAY	INT_ROLL	Debit
LIABGL	INT_ROLL	Credit

Additional Accounting Entries for Negative Interest allowed Product

Accounting Role	Amount Tag	Dr./Cr. Indicator
Customer	Negative Interest Comp_LIQD	Debit
Negative Interest CompREC	Negative Interest Comp_LIQD	Credit

Advices

Advice Name	Description
ROLL_ADV	Rollover Advice

CAMD: Contract Amendment

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CHGINC	CHG2	Credit
CUSTOMER	CHG2	Debit

Advices

Advice Name	Description
AMDADV	Amendment Notice

ROLL: Rollover

Additional Accounting Entries for Negative Interest allowed Product

Accounting Role	Amount Tag	Dr./Cr. Indicator
ROLL_WASH	Negative InterestComp_ROLL	Debit
Negative Interest CompREC	Negative InterestComp_ROLL	Credit

10.5.3 Product Type-Deposit, Bearing, Amortized

The preferences set for this product are as follows:

The payment type for this product is of Bearing type
The type of repayment schedule is Amortized type.
Forward dating is allowed for the product.

BOOK: Booking

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
FWDLIABGL	PRINCIPAL_FWD	Credit
FWDLIABOFF	PRINCIPAL_FWD	Debit

Advices

Advice Name	Description
PAYMENT_MESSAGE	Payment Message

INIT: Initiation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	PRINCIPAL	Debit
LIABGL	PRINCIPAL	Credit
FWDLIABGL	PRINCIPAL_FWD	Debit
FWDLIABOFF	PRINCIPAL_FWD	Credit

Advices

Advice Name	Description
CONT_ADV	Contract Advice
PAYMENT_MESSAGE	Payment Message
COD	Certificate Of Deposit

LIQD: Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
INTERESTPAY	INT_LIQD	Debit
CUSTOMER	INT_LIQD	Credit
FATAX1_PAY	FATAX1_AMT	Credit
CUSTOMER	FATAX1_AMT	Debit
CUSTOMER	PRINCIPAL_LIQD	Credit
LIABGL	PRINCIPAL_LIQD	Debit

Advices

Advice Name	Description
PAYMENT_MESSAGE	Payment Message
BILNOTC	Billing Notice

ACCR: Accrual

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
INTEXP	INT_ACCR	Debit
INTERESTPAY	INT_ACCR	Credit

Advices

No advices allowed for this event

STCH: Status Change

Accounting Entries

Nil

Advices

Nil

ROLL: ROLLOVER

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	INT_LIQD	Credit
INTERESTPAY	INT_LIQD	Debit
INTERESTPAY	INT_ROLL	Debit
LIABGL	INT_ROLL	Credit
CUSTOMER	PRINCIPAL_LIQD	Credit
LIABGL	PRINCIPAL_LIQD	Debit

Advices

Advice Name	Description
ROLL_ADV	Rollover Advice

10.5.4 Product Type-Deposit, Bearing, Capitalized

The preferences set for this product are as follows:

The payment type for this product is of Bearing type
The type of repayment schedule is Capitalized type.
Forward dating is allowed for the product.

BOOK: Booking

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
BFEEEXP	LIQD	Debit
CUSTOMER	LIQD	Credit
FWDLIABGL	PRINCIPAL_FWD	Credit
FWDLIABOFF	PRINCIPAL_FWD	Debit

Advices

Advice Name	Description
CONT_ADV	Contract Advice
DEAL_SLIP	Contract Advice
PAYMENT_MESSAGE	Payment Message

INIT: Initiation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
INTERESTAQP	INTEREST_ACQD	Debit
INTERESTPAY	INTEREST_ACQD	Credit
CUSTOMER	PRINCIPAL	Debit
LIABGL	PRINCIPAL	Credit
FWDLIABGL	PRINCIPAL_FWD	Debit
FWDLIABOFF	PRINCIPAL_FWD	Credit

Advices

Advice Name	Description
DEAL_SLIP	Contract Advice
CONT_ADV	Contract Advice
PAYMENT_MESSAGE	Payment Message

LIQD: Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
FRTAXC_PAY	FRTAXC_AMT	Credit
CUSTOMER	FRTAXC_AMT	Debit
INTERESTPAY	INT_ADJ	Credit
CUSTOMER	INT_ADJ	Debit
LIABGL	INT_CAP	Credit
INTERESTPAY	INT_CAP	Debit
INTERESTPAY	INT_LIQD	Debit
CUSTOMER	INT_LIQD	Credit
CUSTOMER	PENPRCLS	Debit
PENPRCLSINC	PENPRCLS	Credit
CUSTOMER	PRINCIPAL_LIQD	Credit
LIABGL	PRINCIPAL_LIQD	Debit

Advices

Advice Name	Description
CAP	Capitalization Advice
PAYMENT_MESSAGE	Payment Message

ACCR: Accrual

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
INTEXP	INT_ACCR	Debit
INTERESTPAY	INT_ACCR	Credit

Advices

No advices allowed for this event

ROLL: Rollover

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
INTERESTPAY	INT_CAP	Debit
LIABGL	INT_CAP	Credit
INTERESTPAY	INT_LIQD	Debit
CUSTOMER	INT_LIQD	Credit
INTERESTPAY	INT_ROLL	Debit
LIABGL	INT_ROLL	Credit
RFEEINC	RFEE	Credit
CUSTOMER	RFEE	Debit
CUSTOMER	PRINCIPAL_ADDL	Credit
LIABGL	PRINCIPAL_ADDL	Debit
LIABGL	PRINCIPAL_LIQD	Debit
CUSTOMER	PRINCIPAL_LIQD	Credit

Advices

Advice Name	Description
ROLL_ADV	Rollover Advice
PAYMENT_MESSAGE	Payment Message
CAP	Capitalization Advice

STCH: Status Change

Accounting Entries

Nil

Advices

Nil

VAMI: Value Dated Amendment Initiation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
LIABGL	PRINCIPAL_INCR	Credit
CUSTOMER	PRINCIPAL_INCR	Debit
FWDLIABGL	PRINCIPAL_INCR	Debit
FWDLIABOFF	PRINCIPAL_INCR	Credit

Advices

Advice Name	Description
AMDADV	Amendment Advice
PAYMENT_MESSAGE	Payment Message

VAMB: Value Dated Amendment Booking

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
FWDLIABGL	PRINCIPAL_INCR	Credit
FWDLIABOFF	PRINCIPAL_INCR	Debit

Advices

Advice Name	Description
AMDADV	Amendment Advice

CAMD: Contract Amendment

Accounting Entries

Nil

Advices

Advice Name	Description
AMDADV	Amendment Advice

NOTC: Billing Notice Generation

Accounting Entries

No Accounting Entries allowed for this event.

Advices

Advice Name	Description
BILNOTC	Billing Notice
UNCDEPADV	Unclaimed Deposit Notice

Clustered Deposit

The preferences set for this product are as follows:

The payment type for this product is of Bearing type
The type of repayment schedule is normal type.
Forward dating is allowed for the product.

BOOK: Booking

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
FWDLIABGL	PRINCIPAL_FWD	Credit
FWDLIABOFF	PRINCIPAL_FWD	Debit

Advices

Nil

INIT: Initiation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
FATAX1_PAY	FATAX1_AMT	Credit
CUSTOMER	FATAX1_AMT	Debit
INTERESTAQP	INTEREST_ ACQD	Debit
INTERESTPAY	INTEREST_ACQD	Credit
CUSTOMER	PRINCIPAL	Debit
LIABGL	PRINCIPAL	Credit
FWDLIABGL	PRINCIPAL_FWD	Debit
FWDLIABOFF	PRINCIPAL_FWD	Credit

Advices

Advice Name	Description
DEAL_SLIP	Contract Advice
PAYMENT_MESSAGE	Payment Message

LIQD: Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
FRTAX1_PAY	FRTAX1_AMT	Credit
CUSTOMER	FRTAX1_AMT	Debit
INTERESTPAY	INTEREST_ADJ	Debit
CUSTOMER	INTEREST_ADJ	Credit
INTERESTPAY	INT_LIQD	Debit
CUSTOMER	INT_LIQD	Credit
CUSTOMER	PRINCIPAL_LIQD	Credit
LIABGL	PRINCIPAL_LIQD	Debit

Advices

Advice Name	Description
PAYMENT_MESSAGE	Payment Message

ACCR: Accrual

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
INTERESTPAY	INT_ACCR	Credit
INTEXP	INT_ACCR	Debit

Advices

No Advices are allowed for this event.

STCH: Status Change

Accounting Entries

Nil

Advices

Nil

VAMB: Value Dated Amendment Booking

Accounting Entries

Nil

Advices

Advice Name	Description
AMDADV	Amendment Advice

VAMI: Value Dated Amendment Initiation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CUSTOMER	PRINCIPAL_INCR	Debit
LIABGL	PRINCIPAL_INCR	Credit

Advices

Advice Name	Description
PAYMENT_MESSAGE	Payment Message

NOTC: Billing Notice Generation

Accounting Entries

No Accounting Entries allowed for this event.

Advices

Advice Name	Description
UNCDEPADV	Unclaimed Deposit Notice

Brokerage Processing

Only the Brokerage liquidated during BOOK event will be considered for IRR (Internal Rate of Return), the following new accounting role will be provided for setting up of accounting entries for the brokerage liquidation event.

Accounting Role	Description
BROKPIA	Brokerage amount Paid in Advance

The following new amount tags will be provided for setting up accounting entries for the Brokerage liquidation event.

Accounting Role	Description
BROK_PREM	Brokerage Premium Amount
BROK_DISC	Brokerage Discount Amount

The accounting entry setup for the event BOOK are maintained as mentioned below for assets

Dr/Cr	Accounting Role	Amount Tag
Dr	BROKPIA	BROK_PREM
Cr	BROKPAY	BROK_PREM

The accounting entry setup for the event BOOK is maintained as mentioned below for liabilities.

Dr/Cr	Accounting Role	Amount Tag
Dr	BROKPIA	BROK_DISC
Cr	BROKPAY	BROK_DISC