2.4.2 Accounting Entries for Facility

This topis describes about the detailed information on accounting entries for facility details.

This section contains details of the suggested accounting entries that can be set up, for Enterprise Limits and Collateral Management Facility. The details of the suggested accounting entries are given event-wise.

Table 2-109 Event Code and Description

Event Code Description Event type
INIT Facility Initiation Contingent
AMND Facility Amendment Contingent
UTIL Facility Utilization from a contract Contingent
DUTL Release/reduction of Utilization on Facility from a contract Contingent
EXPY Facility Expiry Contingent
CLOS Facility Closure Contingent
EXPT Facility expiry on a revolving line will trigger this event along with DUTL Contingent
EXPR Extend post expiry Contingent
FACR Fee Accrual Fee
FLIQ Fee Liquidation Fee
PRLQ Pay Receive Liquidation Fee

INIT: Facility Initiation

Accounting Entries

Table 2-110 Accounting Entries - considering one amount tag for example

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETGL EFF_LINE_AMT Dr
CONASSETOFF EFF_LINE_AMT Cr

AMND: Facility Amendment - Increase/Decrease of Effective line amount

Table 2-111 Facility Amendment

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETOFF EFF_LINE_AMT_DECR Dr
CONASSETGL EFF_LINE_AMT_DECR Cr
CONASSETGL EFF_LINE_AMT_INCR Dr
CONASSETOFF EFF_LINE_AMT_INCR Cr

DUTIL: Repayment of Utilization to Facility

Accounting Entries

Table 2-112 Repayment of Utilization to Facility

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETGL UTIL_INCR Dr
CONASSETOFF UTIL_INCR Cr

UTIL: Facility Utilization

Accounting Entries

Table 2-113 Facility Utilization

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETGL UTIL_INCR Cr
CONASSETOFF UTIL_INCR Dr

EXPY: Facility Expiry

Accounting Entries

Table 2-114 Facility Expiry Accounting Entries - Reversal of unutilized contingent balance on facility expiry

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETGL UTIL_DECR Credit
CONASSETOFF UTIL_DECR Debit

CLOS: Facility Closure

Accounting Entries - Reversal of unutilized contingent balance on logical closure of facility

Table 2-115 Facility Closure

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETGL UTIL_DECR Credit
CONASSETOFF UTIL_DECR Debit

EXPT: De-utilization post expiry on a revolving line triggers EXPT event to reverse contingent entries on account of de-utilization transaction.

Accounting Entries

Table 2-116 Accounting Entries

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETOFF UNUTL_DECR Debit
CONASSETGL UNUTL_DECR Credit

EXPY: Facility Expiry

Accounting Entries

Table 2-117 Accounting Entries

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETOFF UNUTL_AMT Debit
CONASSETGL UNUTL_AMT Credit

EXPR:

Accounting Entries

Table 2-118 Accounting Entries - extension of facility post expiry

Accounting Role Amount Tags Dr/Cr. Indicator
CONASSETGL UNUTL_AMT Debit
CONASSETOFF UNUTL_AMT Credit

FACR: Fee Accrual

Arrears Fee- Accounting Entries

Table 2-119 Fee Accrual

Accounting Role Amount Tags Dr/Cr. Indicator
RULEINC RULE_ACCR Cr
RULEREC RULE_ACCR Dr

FLIQ: Fee Liquidation

Arrears Fee- Accounting Entries

Table 2-120 Fee Liquidation

Accounting Role Amount Tags Dr/Cr. Indicator
RULEREC RULE_LIQD Cr
CUSTOMER RULE_LIQD Dr

FACR: Fee Accrual

Advance Fee- Accounting Entries

Table 2-121 Fee Accrual

Accounting Role Amount Tags Dr/Cr. Indicator
RULEINC RULE_ACCR Cr
RULERIA RULE_ACCR Dr

FLIQ: Fee Liquidation

Advance Fee- Accounting Entries

Table 2-122 Fee Liquidation

Accounting Role Amount Tags Dr/Cr. Indicator
RULERIA RULE_LIQD Cr
CUSTOMER RULE_LIQD Dr

PRLQ: Pay Receive Liquidation - Applicable for advance fees

Table 2-123 Pay Receive Liquidation

Accounting Role Amount Tags Dr/Cr. Indicator
EFFLINE_AMTINC EFFLINE_AMT_PAY Dr
CUSTOMER EFFLINE_AMT_PAY Cr
EFFLINE_AMTINC EFFLINE_AMT_REC Cr
CUSTOMER EFFLINE_AMT_REC Dr

OB Enterprise Limits Management Integration with Corporate DDA

Note:

Prerequisites
  • Maintain the external source system (Corporate DDA) in common core – Exteranl Credit Approval System.
  • Update the Accounting System as ‘CORPORATE DDA’ and GL systems as ‘FCUBS’ / any other GL system name (code) in Host Param Maintenance.
  • Update the GL system code in Config Service as FCUBS / any other GL system name (code)
  • Configure External System Maintenance for Corporate DDA in External System Maintenance
    • Specify External System Code as CORPORATE DDA
    • Select the required Accounting entry as Single or Double – if Double selected then specify the Inter System Bridge GL
  • Update the Source Branch Code (same branch in OB Enterprise Limits and Collateral Management and Corporate DDA) and Source System (CORPORATE DDA) in Branch Core parameters maintenance.
  • Maintain Source System as CORPORATE DDA in External Customer Maintenance.
  • Maintain account details in External Customer Account Maintenance.
    • Same account number must be created in Corporate DDA system
    • External Credit Approval System must be opted as the CORPORATE DDA
In case of Corporate DDA without separate bridge GL for source systems - Single accounting entry:
  • For all transactions (fees) in OB Enterprise Limits Management, only one leg of accounting entry (customer account related) will be handed over to the Corporate DDA system
  • The other leg of transaction (fee GL) will be sent to GL system

Table 2-124 ACCOUNTING ENTRY - SINGLE (WITHOUT BRIDGE GL) for ADVANCE/ARREARS FEE - FLIQ AND FACR

ACCOUNTING ENTRY - SINGLE (WITHOUT BRIDGE GL) for ADVANCE/ARREARS FEE - FLIQ AND FACR
FEE TYPE FLIQ FACR
DR CR DR CR
ADVANCE FEE CUSTOMER RECEIVED IN ADVANCE RECEIVED IN ADVANCE INCOME GL
HANDOFF TO CORP DDA GL SYSTEM GL SYSTEM GL SYSTEM
ARREARS FEE CUSTOMER RECEIVABLE GL RECEIVABLE GL INCOME GL
HANDOFF TO CORP DDA GL SYSTEM GL SYSTEM GL SYSTEM
In case of Corporate DDA with separate bridge GL for each source system - Double accounting entries:
  • For all transactions in OB Enterprise Limits Management (fees), first pair of entry (customer account + Bridge GL) will be handed over to the Corporate DDA system
  • The second pair of entries (Bridge GL + fee GL) will be handed over to the GL system

Table 2-125 ACCOUNTING ENTRY - DOUBLE (WITH BRIDGE GL) for ADVANCE/ARREARS FEE - FLIQ AND FACR

ACCOUNTING ENTRY - DOUBLE (WITH BRIDGE GL) for ADVANCE/ARREARS FEE - FLIQ AND FACR
FEE TYPE FLIQ - PAIR 1 FLIQ - PAIR 2 FACR
DR CR DR CR DR CR
ADVANCE FEE CUSTOMER BRIDGE GL BRIDGE GL RECEIVED IN ADVANCE RECEIVED IN ADVANCE INCOME GL
HANDOFF TO CORP DDA CORP DDA GL SYSTEM GL SYSTEM GL SYSTEM GL SYSTEM
ARREARS FEE CUSTOMER BRIDGE GL BRIDGE GL RECEIVABLE GL RECEIVABLE GL INCOME GL
HANDOFF TO CORP DDA CORP DDA GL SYSTEM GL SYSTEM GL SYSTEM GL SYSTEM

Note:

All transaction in OB Enterprise Limits and Collateral Management can be viewed in daily_log_ac tables - OBELCM_PP_TB_LM_DAILY_LOG_AC (facility).
  • The above table has a column CUST_GL with values as A (Accounting System) and G (GL system).
  • Handoff to respective systems (DDA and GL) happens based on selected accounting entry (Single/Double) and value in above column.

Parent topic: Processing