14. Annexure A - Accounting Entries and Advices

This chapter contains the following sections:

Section 14.1, "Accounting Entries for Interest and Charges"
Section 14.2, "Event-wise Accounting Entries and Advices"

14.1 Accounting Entries for Interest and Charges

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

IC Events

The following is an exhaustive list of events that can take place during Interest or Charge calculation. In the subsequent paragraphs we shall examine the accounting entries and advices for each of the events listed below.

Event Code	Event Description
CLIQ	Charges Liquidation
IACR	Interest Accrual
ILIQ	Interest Liquidation
UDCH	UDE Values Change

Amount Tags

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

Amount Tag	Description
CHARGE	Charges
IACQUIRED	Acquired Interest Amount
IACR	Interest Accrual
IACR_ADJ	Interest Accrual Adjustments
ILIQ	Interest Liquidation
TAX	Tax
TAX_ADJ	Tax Adjustments
INT_PADJ	Back valued interest adding to the normal interest
INT_NADJ	Back valued interest reducing the normal interest
TAX_PADJ	Back valued tax adding to the normal tax
TAX_NADJ	Back valued tax reducing the normal tax
FATCA_TAX	FATCA tax
FATCA_REFERRAL	FATCA referral
IACR_ADJ_CURR	Interest adjustment amount for current financial year
IACR_ADJ_PREV	Interest adjustment amount for previous financial year

In addition to these you can define amount tags as per your requirements.

Accounting Roles

The following list contains the accounting roles that are applicable to IC.

Accounting Role
CHG_INCOME
CHG_BOOK
DIV_TAX_EXP
CUST_DVTAX_COD
INT_IC_AJE
DIV_TAX_PAD
<RULE>-ESCROW-<FORMULA NO>
-PNL_ADJ_CURR-
-PNL_ADJ_PREV-

14.2 Event-wise Accounting Entries and Advices

This section contains the following topics:

Section 14.2.1, "Charge Basis: ADHOC-STMT"
Section 14.2.2, "Charge Basis: NUM-CHQ-ISS"
Section 14.2.3, "Charge Basis: NUM-CHQ-RET"
Section 14.2.4, "Charge Basis: NUM-STOP-PAY"
Section 14.2.5, "Charge Basis: NUM-ACCT-STMTS"
Section 14.2.6, "Charge Basis: ITEM-COUNT"
Section 14.2.7, "Charge Basis: TURNOVER"
Section 14.2.8, "Accounting Entries and Advices for Interest"
Section 14.2.9, "Accounting Entries for Write-off Process"
Section 14.2.10, "Accounting Entries for Income Recognition"
Section 14.2.11, "Accounting Entries for FATCA"

14.2.1 Charge Basis: ADHOC-STMT

14.2.1.1 CLIQ: Charges Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CHG_BOOK	CHARGE	DEBIT
CHG_INCOME	CHARGE	CREDIT

Advices

No advices allowed for this event.

14.2.1.2 UDCH: UDE Values Change

No accounting entries allowed for this event.

Advices

Advice type	Description
UDECA	Advice Type

14.2.2 Charge Basis: NUM-CHQ-ISS

14.2.2.1 CLIQ: Charges Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CHG_BOOK	CHARGE	DEBIT
CHG_INCOME	CHARGE	CREDIT

Advices

No advices allowed for this event.

14.2.2.2 UDCH: UDE Values Change

No accounting entries allowed for this event.

Advices

Advice type	Description
UDECA

14.2.3 Charge Basis: NUM-CHQ-RET

14.2.3.1 CLIQ: Charges Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CHG_BOOK	CHARGE	DEBIT
CHG_INCOME	CHARGE	CREDIT

Advices

No advices allowed for this event.

14.2.3.2 UDCH: UDE Values Change

No accounting entries allowed for this event.

Advices

Advice type	Description
UDECA

14.2.4 Charge Basis: NUM-STOP-PAY

14.2.4.1 CLIQ: Charges Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CHG_BOOK	CHARGE	DEBIT
CHG_INCOME	CHARGE	CREDIT

Advices

No advices allowed for this event.

14.2.4.2 UDCH: UDE Values Change

No accounting entries allowed for this event.

Advices

Advice type	Description
UDECA

14.2.5 Charge Basis: NUM-ACCT-STMTS

14.2.5.1 CLIQ: Charges Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CHG_BOOK	CHARGE	DEBIT
CHG_INCOME	CHARGE	CREDIT

Advices

No advices allowed for this event.

14.2.5.2 UDCH: UDE Values Change

No accounting entries allowed for this event.

Advices

Advice type	Description
UDECA

14.2.6 Charge Basis: ITEM-COUNT

14.2.6.1 CLIQ: Charges Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CHG_BOOK	CHARGE	DEBIT
CHG_INCOME	CHARGE	CREDIT

Advices

No advices allowed for this event.

14.2.6.2 UDCH: UDE Values Change

No accounting entries allowed for this event.

Advices

Advice type	Description
UDECA

14.2.7 Charge Basis: TURNOVER

14.2.7.1 CLIQ: Charges Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
CHG_BOOK	CHARGE	DEBIT
CHG_INCOME	CHARGE	CREDIT

Advices

No advices allowed for this event.

14.2.7.2 UDCH: UDE Values Change

No accounting entries allowed for this event.

Advices

Advice type	Description
UDECA

14.2.8 Accounting Entries and Advices for Interest

14.2.8.1 IACR: Interest Accrual

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
ICDT-ACCR-1	IACR	DEBIT
ICDT-PNL-1	IACR	CREDIT
ICDX-ACCR-1	IACR	DEBIT
ICDX-PNL-1	IACR	CREDIT
ICMI-ACCR-1	IACR	CREDIT
ICMI-PNL-1	IACR	DEBIT
ICOD-ACCR-5	IACR	DEBIT
ICOD-PNL-4	IACR	CREDIT
ICOD-ACCR-4	IACR	DEBIT
ICOD-PNL-5	IACR	CREDIT
ICQC-ACCR-1	IACR	DEBIT
ICQC-PNL-1	IACR	CREDIT
ICQC-ACCR-3	IACR	CREDIT
ICQC-PNL-3	IACR	DEBIT
ICQC-ACCR-4	IACR	DEBIT
ICQC-PNL-4	IACR	CREDIT
MNS1-PNL-1	IACR	CREDIT
MNS1-ACCR-1	IACR	DEBIT
MNS2-ACCR-1	IACR	DEBIT
MNS2-PNL-1	IACR	CREDIT
Expense	IACR	DEBIT
Paid in advance	IACR	CREDIT

Credit Interest: Interest Adj Split not Required

Accounting Role	Amount Tag	Dr./Cr. Indicator
RULE-PNL-1	IACR	DEBIT
RULE-ACCR-1	IACR	CREDIT
RULE-PNL_ADJ-1	IACR_ADJ	DEBIT
RULE-ACCR-1	IACR_ADJ	CREDIT

Credit Interest: Interest Adj Split Required

Accounting Role	Amount Tag	Dr./Cr. Indicator
RULE-PNL-1	IACR	DEBIT
RULE-ACCR-1	IACR	CREDIT
RULE-PNL_ADJ_PREV-1	IACR_ADJ_PREV	DEBIT
RULE-ACCR-1	IACR_ADJ_PREV	CREDIT
RULE-PNL_ADJ_CURR-1	IACR_ADJ_CURR	DEBIT
RULE-ACCR-1	IACR_ADJ_CURR	CREDIT

Advices

No advices allowed for this event.

14.2.8.2 ILIQ: Interest Liquidation

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
ICDB-BOOK-2	ILIQ	DEBIT
ICDB-PNL-2	ILIQ	CREDIT
ICDB-PNL-1	ILIQ	DEBIT
ICDB-BOOK-1	ILIQ	CREDIT
ICDB-ACQUIRED-1	IACQUIRED	DEBIT
ICDB-BOOK-1	IACQUIRED	CREDIT
ICDB-BOOK-2	IACQUIRED	DEBIT
ICDB-ACQUIRED-2	IACQUIRED	CREDIT
ICDT-ACR_ADJ-1	IACR_ADJ	DEBIT
ICDT-PNL_ADJ-1	IACR_ADJ	CREDIT
ICDT-ACCR-1	ILIQ	CREDIT
ICDT-PNL-2	ILIQ	CREDIT
ICDT-BOOK-1	ILIQ	DEBIT
ICDT-BOOK-1	IACQUIRED	DEBIT
ICDT-BOOK-2	IACQUIRED	DEBIT
ICDT-ACQUIRED-2	IACQUIRED	CREDIT
ICDT-ACQUIRED-1	IACQUIRED	CREDIT
ICDT-BOOK-2	ILIQ	DEBIT
ICDT-TPBL-3	TAX	CREDIT
ICDT-BOOK-3	TAX	DEBIT
ICDX-ACR_ADJ-1	IACR_ADJ	DEBIT
ICDX-PNL_ADJ-1	IACR_ADJ	CREDIT
ICDX-ACCR-1	ILIQ	CREDIT
ICDX-BOOK-1	ILIQ	DEBIT
ICDX-BOOK-1	IACQUIRED	DEBIT
ICDX-ACQUIRED-1	IACQUIRED	CREDIT
ICMA-PNL-1	ILIQ	DEBIT
ICMA-PNL-2	ILIQ	DEBIT
ICMA-BOOK-2	ILIQ	CREDIT
ICMA-BOOK-1	ILIQ	CREDIT
ICMA-BOOK-2	IACQUIRED	CREDIT
ICMA-ACQUIRED-2	IACQUIRED	DEBIT
ICMA-BOOK-1	IACQUIRED	CREDIT
ICMA-ACQUIRED-1	IACQUIRED	DEBIT
ICMI-PNL-2	ILIQ	CREDIT
ICMI-BOOK-2	ILIQ	DEBIT
ICMI-ACCR-1	ILIQ	DEBIT
ICMI-BOOK-1	ILIQ	CREDIT
ICMI-BOOK-2	IACQUIRED	DEBIT
ICMI-ACQUIRED-2	IACQUIRED	CREDIT
ICMI-PNL_ADJ-1	IACR_ADJ	DEBIT
ICMI-BOOK-1	IACQUIRED	CREDIT
ICMI-ACQUIRED-1	ICMI-ACQUIRED-1	DEBIT
ICMI-ACR_ADJ-1	IACR_ADJ	CREDIT
ICOD-ACR_ADJ-4	IACR_ADJ	DEBIT
ICOD-PNL_ADJ-4	IACR_ADJ	CREDIT
ICOD-ACR_ADJ-5	IACR_ADJ	DEBIT
ICOD-PNL_ADJ-5	IACR_ADJ	CREDIT
ICOD-ACCR-5	ILIQ	CREDIT
ICOD-BOOK-4	ILIQ	DEBIT
ICOD-ACCR-4	ILIQ	CREDIT
ICOD-BOOK-5	ILIQ	DEBIT
ICOD-BOOK-4	IACQUIRED	DEBIT
ICOD-ACQUIRED-4	IACQUIRED	CREDIT
ICOD-BOOK-5	IACQUIRED	DEBIT
ICOD-ACQUIRED-5	IACQUIRED	CREDIT
ICQC-ACR_ADJ-1	IACR_ADJ	DEBIT
ICQC-PNL_ADJ-1	IACR_ADJ	CREDIT
ICQC-ACR_ADJ-3	IACR_ADJ	CREDIT
ICQC-PNL_ADJ-3	IACR_ADJ	DEBIT
ICQC-PNL_ADJ-4	IACR_ADJ	CREDIT
ICQC-ACR_ADJ-4	IACR_ADJ	DEBIT
ICQC-ACCR-1	ILIQ	CEBIT
ICQC-BOOK-1	ILIQ	DEBIT
ICQC-PNL-2	ILIQ	CREDIT
ICQC-BOOK-2	ILIQ	DEBIT
ICQC-ACCR-3	ILIQ	DEBIT
ICQC-BOOK-3	ILIQ	CREDIT
ICQC-ACCR-4	ILIQ	CREDIT
ICQC-BOOK-4	ILIQ	DEBIT
ICQC-BOOK-1	IACQUIRED	DEBIT
ICQC-ACQUIRED-1	IACQUIRED	CREDIT
ICQC-BOOK-2	IACQUIRED	DEBIT
ICQC-ACQUIRED-2	IACQUIRED	CREDIT
ICQC-BOOK-3	IACQUIRED	CREDIT
ICQC-ACQUIRED-3	IACQUIRED	DEBIT
ICQC-BOOK-4	IACQUIRED	DEBIT
ICQC-ACQUIRED-4	IACQUIRED	CREDIT
MNS1-BOOK-1	ILIQ	DEBIT
MNS1-BOOK-1	IACQUIRED	DEBIT
MNS1-ACQUIRED-1	IACQUIRED	CREDIT
MNS1-ACCR-1	ILIQ	CREDIT
MNS2-ACCR-1	ILIQ	CREDIT
MNS2-BOOK-1	ILIQ	DEBIT
MNS2-BOOK-1	IACQUIRED	DEBIT
MNS2-ACQUIRED-1	IACQUIRED	CREDIT

Accounting Role	Amount Tag	Dr./Cr. Indicator
RULE-ACCR-1	ILIQ	DEBIT
BOOK1	ILIQ	CREDIT
RULE-ACCR-1	IACQUIRED	DEBIT
BOOK1	IACQUIRED	CREDIT

Note

Interest liquidation entries are same for both Interest Adjustment Split Required as ‘Y’ and Interest Adjustment Split Required as ‘N’.

Advices

No advices allowed for this event.

14.2.8.3 UDCH: UDE Values Change

Accounting Entries

No accounting entries allowed for this event.

Advices

Advice type	Description
UDECA

14.2.8.4 DEBK: Booking Term Deposits for discounted or true discounted deposit

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
TD-PRINC-BOOK	TDACCOUNT	Cr
TD-PRINC-BOOK	TDOFFSET	Dr
TD-INT-LIQD	TDOFFSET	Cr
TD-INT-LIQD	TDINTPIA	Dr

14.2.8.5 DEBK: Booking Term Deposits for Bearing Type of Deposit

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
TD-PRINC-BOOK	TDACCOUNT	Cr
TD-PRINC-BOOK	TDOFFSET	Dr

14.2.8.6 DEBK: Booking Term Deposits for discounted interest

This event will have additional entries for the discounted interest.

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
Paid in Advance	TD-INT	Dr
Customer	TD-INT	Cr

14.2.8.7 ROLL: Roll Over Of Deposits

This event will be defined in the product to give out discounted interest on the extended portion of deposit and it will be used only for this purpose and all other operations of rollover remains as it is. This event is applicable only for Discounted deposits.

Accounting Entries

Accounting Role	Amount Tag	Dr./Cr. Indicator
Paid in Advance	TD-INT	Dr
Customer	TD-INT	Cr

14.2.9 Accounting Entries for Write-off Process

The following accounting entries are processed for each stage of Write-off process on OD account:

Liquidating Accruals

Dr/Cr	Account	Amount
Dr	Customer (OD account)	Interest accrued (from last liquidation to till date)
Cr	Interest Receivable	Interest accrued (from last liquidation to till date)

Reversal Interest Income

Dr/Cr	Account	Amount
Dr	Interest Income	Interest Income
Cr	Suspense GL	Interest Income

Marking Principal Amount as Bad Debit

Dr/Cr	Account	Amount
Dr	Bad Debits Expense GL	OD Principal
Cr	Suspense GL	OD Principal

Balance Transfer of OD Account

Dr/Cr	Account	Amount
Dr	Interest Receivable	Interest accrued after status change
Cr	Interest Income Suspense. This will be the GL mapped for the accrual for the new status ‘WROF’	Interest accrued after status change

14.2.10 Accounting Entries for Income Recognition

Dr/Cr	Account	Amount
Dr	Interest Income Suspense	Amount Paid towards Interest
Cr	Interest Income	Amount Paid towards Interest

14.2.11 Accounting Entries for FATCA

The following accounting entries for crediting to ESCROW GL needs to be maintained.

14.2.11.1 FATCA TAX

The system will maintain the accounting entries for collection of tax from the customer as follows:

Debit/Credit	Accounting Role	Amount Tag
Debit	TD01-BOOK-1	FATCA_TAX
Credit	TD01-TPBL-2	FATCA_TAX

14.2.11.2 FATCA Referral

The system will maintain the accounting entries for computation of tax from the customer as follows:

Debit/Credit	Accounting Roles	Amount Tag
Debit	TD01-BOOK-1	FATCA_REFERRAL
Credit	TD01-ESCROW-2	FATCA_REFERRAL

Note

Also note that some of the Amount Tags linked to the Accounting Roles are user defined.