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Comment: added details on making balanced accounting entries for transfers between branches

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  • Scenario 1) Disburse loan to a savings

Loan disbursal should: Debit Loan Portfolio
Savings deposit should: Credit Savings Control

  • Scenario 2) Transfer from savings to Loan

Savings withdrawal should: Debit Savings Control
Loan repayment Should: Credit Income from interest, income from fees, loan portfolio, income from penalty

  • Scenario 3) Transfer from savings(a) to savings(b) where A is a withdrawal and B is a deposit

savings withdrawal (a) : Debit a' Savings Control
savings deposit (b) : Credit b's Savings Control

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Inter-Branch Transfers [In Progress]

The assumption being that the entries created in each branch should be balanced. 

 

  • Scenario 1) Disburse loan to a savings from Branch A to Branch B

Loan disbursal should: Debit Loan Portfolio and Credit a Liability account for "Branch Liability Transfer"
Savings should: Credit Savings Control and Debit a Liability account for "Branch Liability Transfer"

 

  • Scenario 2) Transfer from savings to Loan from Branch A to Branch B

Savings withdrawal in Branch A should: Debit Savings Control
Loan ShouldControl  and Credits a Liability account for "Branch Liability Transfer"
Loan repayment in Branch B should: Credit Income from interest, income from fees, loan portfolio, income from penalty and Debit the account for  "Branch Liability Transfer"

  • Scenario 3) Transfer from savings(Apr-a) to savings(B) where A pr-b) where pr-a is a withdrawal and B pr-b is a deposit from Branch A to Branch B

savings (pr-a) in Branch A : Debit pr-a' Savings Control and Credits a Liability account for "Branch Liability Transfer"
savings (b) : Credit in Branch B:  Debits a Liability account for "Branch Liability Transfer" and Credit b's Savings Control

Technical Implementation 

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Ex, for Scenario 1, create a debit for the Loan Transaction and a debit for the savings transaction?

Approach 2 ] Unlikely - Link journal entries to the account Transaction (in m_account_transfer_transaction)

 

entity_type_enum = 3 (Account Transfer)
what would the entity Id be? = Need to have a re-look
transaction_id = link to m_account_transfer_transaction ( Here add a new convenience label a "m_account_transfer_transaction tables id" )
account_transfer_transaction_id foreign key

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