7.8.2 Determine Account Type of Instrument

Account types classify instruments by their use in financial statements and determine how the cash flow engine processes an individual instrument. The Common COA ID value determines the account type of an individual record. The Dimension Member interface classifies each Common COA ID member as an account type. All other Product type dimensions contain a Common COA ID member mapping as an attribute and through the Common COA ID association, the account type is known. Based on these account types, there are five categories of cash flow processing, as shown in the following table.

Table 7-2 Account Types of the Instrument

Cash Flow Category	Process Description Detail	Process Description New Business	Associated Account Type
Detail cash flow	Process daily cash flow events and generate necessary financial elements	Process daily cash flow events and generate necessary financial elements	Interest-Earning AssetInterest-Bearing LiabilityOff-Balance Sheet Receivable Off-Balance Sheet Payable
Balance Only	Process the record originating on the origination date and running off on the maturity date. No payments are processed.	Show ending balances equal to the forecasted amounts in each bucket.	Other Asset Other Liability
Interest Only	Process the instrument as a single interest payment covering the time from the origination date to the maturity date. Recognize the current balance as an interest cash flow on the maturity date, but accrue interest from the origination date to the maturity date.	Show interest cash flows/accruals equal to forecasted amounts in each bucket.	Interest Income Interest Expense
Non-Interest Income / Expense	Process the instrument as a single non-interest payment covering the time from the origination date to the maturity date. Recognize the current balance as non-interest cash flow on the maturity date.	Show non-interest financial elements equal to forecasted amounts in each bucket.	Non-Interest Income Non-Interest Expense
Special Autobalancing	Detail information is used only to update the current position.	Generate results as needed during the autobalancing process if the account is specified as autobalancing account.	Taxes Dividends Equity
Off Balance Sheet Account Type	Instruments with the Off Balance Sheet account type should be located in one of the derivative instrument tables, e.g. swaps, futures. Instruments with the Off Balance Sheet account type should not be located in non-derivative instrument tables.Instruments with the “Off Balance Sheet” account type should have the correct leg type populated, for example, it should be “1” (payable leg) or “2” (receivable leg). It should not be “0”.		Off Balance Sheet Receivable Off Balance Sheet Payable

Note:

Other Assets, the Cash Flow Engine does not refer to either the maturity mix or new business timing. Origination for such accounts always occurs at the beginning of the bucket and account maturity occurs at bucket end + 1 day. Other Assets, Other Liabilities, and Equity Account types have the same behavior.

For Non-interest Income/Expense and Interest Income/Expense accounts, origination happens on bucket start date -1 and matures at the bucket end date. For more information about financial element output by account type, see the Financial Element Calculations table.