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Overview
Financial Institutions may close their accounting books periodically and hence want to know the status of the accrued incomes and expenses as of the particular date.
Today, for Accounting Type as "Accrual (Periodic)", the accrual accounting happens in Mifos on the date a payment is due. This will be enhanced so that the organization can
a) recognize income/expenses periodically for loans (as specified as a configuration):
OR
b) recognize income/expenses as on a particular date for loans (which will be manually specified when invoking the accrual job).
Mifos will continue to accrue income/expense for loans on the dates on which they fall due. There will not be any change to this functionality.
Background and strategic fit
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| # | Title | User Story | Importance | Notes |
|---|---|---|---|---|
| 1 | Set accrual accounting frequency | As a head accountant, I wish to specify how frequently accrued income and expenses will be recognized in accounting | Must have | |
| 2 | Automatic periodic accrual | At the frequency specified by the head accountant, Mifos internally invokes a batch job that will take the current date as input and recognize all unrecognized income and expenses for loans till this date | Must have | |
| 3 | Manual accrual | As a head accountant, I wish to manually invoke the accrual job as on a specific date to recognize all income and expenses for loans till this date | Must have |
Business Rules
The definition of periodicity of accrual will be applied to the whole Mifos installation (i.e. it is organization wide and not restricted to specific products).
Mifos should support accrual periodicity of the following:
- yearly - on 31st March
- half yearly - on 30th June and 31st Dec
- quarterly - on 31st March, 30th June, 30th Sep and 31st Dec
- monthly - on last day of month
- on 25th of every month
- fortnightly, on second Thursdays
- weekly on Saturdays
- daily
Attributes
The following attributes will be captured for "Accrual Setup" (under Accounting)
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