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):
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
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
The following attributes will be captured for "Accrual Setup" (under Accounting)
Accrual Type to be defaulted to "Manual" during upgrades
Modifications to Loan Account(“m_loan”)
Column Name Data Type Description accrued_till Date to identify till which date accruals are done
- calculate accrual amount till specified date
- system will calculates accrual amount per one day first
- then apply this to number of days between last accrued and till the date specified/periodic date
- if days on month set as 30, then in calculation 30 days will be consider even for 31 days(on 30th day and 31st day accrual amount will be same)
- batch job, which accrues based on periodicity mentioned in settings(calendar instance)batch job settings
- API for capturing accruals till the date specified(Manual) . date must not be in future.
- if there is any difference in amount because of back dated entry, system will do accrual or reversal of accrual for that varied amount.