5.2.4.3 Specify event-wise accounting entries

You can specify the accounting entries that need to be posted to the respective GL’s during each event that is associated with the product. As discussed earlier, the events that are associated for processing fee accruals are FELR and FACR. These are the accounting entries that you need to pass during each of these events.

• Accounting entries for the event FELR
  During collection of a new upfront fee, you need to pass the following accounting entries:

  Accounting Role	Amount Tag	Debit/ Credit Indicator
  CUSTOMER	COMPONENT_LIQD This contains the fee liquidation amount that is collected as new fee.	Dr
  COMPONENT_FIA This is the accounting role, which is mapped to an Unearned Income GL/ Liability GL. At the time of collecting a fee, you can credit the Unearned Income GL. You can credit the actual Income GL at the time of fee accrual.	COMPONENT_LIQD	Cr

  If your bank is refunding the fee amount to the customer, you need to pass the following accounting entries:

  Accounting Role	Amount Tag	Debit/ Credit Indicator
  COMPONENT_FIA This is the accounting role which is mapped to a Liability GL.	COMPONENT_DECR This contains the fee refund amount.	Dr
  CUSTOMER	COMPONENT_DECR	Cr

• Accounting entries for the event FACR
  This event is triggered as part of accrual processing of the upfront fee components associated with the product. This event is triggered as part of OL automatic daily batch for those contracts that have been set up for up-front fee accrual. The accounting entries that you need to pass during this event are shown below:

  Accounting Role	Amount Tag	Debit/ Credit Indicator
  COMPONENT_FIA This is the accounting role which is mapped to a Liability GL.	COMPONENT_ ACCR This contains the fee amount being accrued.	Dr
  COMPONENT_FIN This accounting role is mapped to an Income GL. You can credit this GL with the fee amount.	COMPONENT_ ACCR	Cr