4.10 Process Broker Journal Detail

This topic provides the systematic instructions to maintain a journal of accounting entries for payments to a broker.

Brokers receive commission payments out of some of the transactions in every fund for which they are designated intermediaries. With regard to commission earnings, brokers could request for:

• Advance payments
• Ad-hoc payments

Oracle FLEXCUBE Investor Servicing enables the AMC to keep track of the processing and actual payment of commission earnings for brokers, by providing an accounting ‘journal’ facility, which would record each payment made.

Using this journal, you can:

• Make an accounting entry for each payment made to a broker for earnings from a specific transaction in a fund.
• Maintain the payable and receivables for a broker for earnings from a fund.
• Adjust the effect of advance payments or ad-hoc payments made to a broker, on any future payments.
• The journal for a broker is therefore a single repository for all commission payments received by the broker.

1. On Home screen, type UTDBRKJR in the text box, and click Next.
   The Broker Journal Detail screen is displayed.

   Figure 4-17 Broker Journal Detail

   
   

   
   Description of "Figure 4-17 Broker Journal Detail"

   
   
2. In the screen, specify the following mandatory information for each accounting entry for a broker, for a transaction in a fund:
   • The date of the entry, in the Entry Date field
   • A unique reference number for the journal entry, in the Reference Number field.
   • The currency for the journal entry, in the Journal Currency field.
   • The payable or receivables resulting from the transaction, in the Payables and Receivables fields.
   • Whether the entry is to be deemed an adjustment entry, as indicated in the Adjustment Entry field.
   • Any applicable descriptive or narrative text qualifying the entry, in the Remarks field.
   • The details of the mode of payment, in the Payment Details section.
3. Click Save button to save your changes after you have specified this data.
   You must have another user to authorize a journal entry for the same to be reflected in the database.
4. On Broker Journal Detail screen, click New to enter the details.
   For more information on fields, refer to the field description table.

   Table 4-14 Broker Journal Detail - Field Description

   Field	Description
   Basic Information	The section displays the following fields.
   Journal Txn Number	Display System displays the automatically generated journal transaction number here.
   Entry Date	Date Format; Mandatory Specify the date on which the respective accounting entry was made in this journal. This date cannot be a future date. Note: System computes the VAT amount for the commission only if the broker journal entry date is on or after the broker VAT registration date.
   Reference Number	Alphanumeric; 16 Characters; Mandatory Specify a unique alphanumeric identifier for the journal entry. You will use this reference number to track this entry subsequently.
   Journal Type	Alphanumeric; 1 Character; Mandatory Select the Journal type from the adjoining drop-down list. This list displays the following values: General Journal (G): If you select General Journal, the broker code and the journal remarks are mandatory. Client-Specific Journal (C): If you select Client-Specific Journal, the broker code, UHID and remarks are mandatory. Transaction-Specific Journal (T): If you select Transaction-Specific Journal, broker code, transaction number, UHID and remarks are mandatory. The system defaults fund ID and unit holder ID on the selection of transaction number.
   Broker	Alphanumeric; 9 Characters; Mandatory Select the code of the broker for whom the accounting entry is being recorded in the journal.
   Broker Name	Display The broker name will be displayed.
   Product ID	Alphanumeric; 10 Characters; Optional Select the product ID from the option list.
   Product Name	Display The system displays the name of the product for the selected product ID.
   Fund ID	Alphanumeric; 6 Characters; Mandatory Select the fund ID in which the commission was earned by the broker, resulting in this journal entry. The list contains all funds in which the broker has transacted and received commission, in the AMC. When you specify the fund, the ISIN code of the fund is displayed in the ISIN Code field.
   Fund Name Short	Display The system displays the short name of the fund.
   ISIN Code	Alphanumeric; 25 Characters; Mandatory Select the ISIN Code of the selected fund. If you specify the ISIN Code of a fund, the fund is displayed in the Fund ID field.
   Transaction Number	Numeric; 16 Characters; Optional Select the transaction number from the adjoining option list. Note: If the transaction number is given then system validates whether the transaction number belongs to the corresponding broker or not, while saving.
   Unit Holder ID	Alphanumeric; 12 Characters; Optional The system populates the unit holder ID from the transaction number selected. You can also query unit holder ID by clicking Find UH button.
   Unit Holder Name	Display The system defaults the Unit Holder Name as per the Unit Holder ID.
   Journal Currency	Alphanumeric; 3 Characters; Mandatory Select the currency for the journal entry. The base currency for the fund is displayed here, but you can choose a different currency.
   Payables	Alphanumeric; 18 Characters; Optional Specify the amount that the broker must pay to the AMC, if any, as a result of the transaction.
   Receivables	Alphanumeric; 18 Characters; Optional Specify the commission amount that the broker must receive from the AMC, if any, as a result of the transaction.
   Adjustment Entry	Mandatory Select the appropriate Adjustment Entry from the adjoining drop-down list to indicate that the payable or receivable amount specified for this journal entry must be adjusted or offset in the next commission payment cycle for the next transaction, for the selected broker. If you select the option VAT Only, then the amount entered against Payables and Receivables is considered as VAT amount payable and receivable. If the Adjustment entry is selected as VAT Only, then the system will make changes only to the VAT amount.
   Remarks	Alphanumeric; 255 Characters; Mandatory Specify any narrative or descriptive text qualifying the journal entry. This information is mandatory.
   Currency Name	Display The system displays the name of the currency for the selected journal currency.
   Payment Details	In this section, specify the details of the mode in which the payable or receivables amount has to be paid out or received by the broker.
   Payment Mode	Optional Select the mode in which the payment was made or received, either through check or by account transfer.
   Bank	Alphanumeric; 12 Characters; Mandatory Select the code of the bank, in which the transfer account resides, which was used to make the payment.
   Check Number	Alphanumeric; 12 Characters; Mandatory for check payments Specify the number of the check.
   Account Currency	Alphanumeric; 3 Characters; Optional Select the currency of the transfer account, which was used to make the payment.
   Account Number	Alphanumeric; 34 Characters; Optional Specify the number of the transfer account that was used to make the payment.
   IBAN	Alphanumeric; 40 Characters; Optional Specify the International Bank Account Number (IBAN) of the account holder.
   Branch	Alphanumeric; 12 Characters; Optional Select the code of the bank, in which the transfer account resides, which was used to make the payment.
   Cheque Date	Date Format; Optional Specify the date on which the check was drawn.
   Account Type	Alphanumeric; 1 Character; Optional Select the type of the transfer account, which was used to make the payment.
   Maintained Bank Accounts	Alphanumeric; 35 Characters; Optional Select the maintained bank accounts from the option list.