3.2 System Account Generation

This topic provides information on the generation of system accounts based on predefined attributes.

The Operational Ledger assigns a system account to each posted entry according to set attributes. These attributes are defined for a specific combination of General Ledger (GL) and MIS Code under the System Account Parameters. After creation, a system account is connected to its related GL and MIS Code combination.

Example Scenarios:

Entry 1: Loan Disbursement

When a bilateral loan is disbursed, a debit entry is recorded in the Asset GL. The Transaction MIS and Composite MIS are assigned to the loan.

As this is the first occurrence of this GL-MIS combination, the system generates a new System Account (S1) and updates the balance in S1.

System Account Branch Code General Ledger Value Date Dr/Cr Currency Amount Related Customer Related Reference Customer MIS Composite MIS Transaction MIS
S000000001 A01 140000011 01-Jan-24 Dr USD 1000000.00 CUSTOMER1 70203090190 CUSTMIS1 COMPMIS1 TXNMIS1

Entry 2: Loan Repayment

During a bilateral loan repayment, a credit entry is recorded in the Asset GL. Both Transaction MIS and Composite MIS are mapped to the loan, but only the Transaction MIS value is updated.

The system verifies whether a System Account exists for the new GL-MIS combination. Since none exists, a new System Account (S2) is created, and the balance is recorded in S2.

System Account Branch Code General Ledger Value Date Dr/Cr Currency Amount Related Customer Related Reference Customer MIS Composite MIS Transaction MIS
S000000001 A01 140000011 10-Jan-24 Cr USD 250000.00 CUSTOMER1 70203090190 CUSTMIS1 COMPMIS1 TXNMIS2

Entry 3: Value-Dated Amendment

A value-dated amendment on the bilateral loan results in a debit entry to the Asset GL. The Transaction MIS and Composite MIS remain unchanged.

The system identifies that System Account S1 already exists for this GL-MIS combination with the same attributes. Therefore, the resulting balance is recorded in System Account S1.

System Account Branch Code General Ledger Value Date Dr/Cr Currency Amount Related Customer Related Reference Customer MIS Composite MIS Transaction MIS
S000000001 A01 140000011 25-Jan-24 Dr USD 400000.00 CUSTOMER1 70203090190 CUSTMIS1 COMPMIS1 TXNMIS1

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