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- This functionality is mainly needed for transactions that involve more than one currency. The transaction may be initiated in one currency, on an account which is opened in another currency. Every account will be opened with a currency (which will be the base-currency for that account).
For any cross-currency operations (between different currencies) Mifos will first make an exchange operation automatically. Example, if a deposit (or withdrawal) is made in USD on a CDF account, Mifos will convert the USD amount to CDF as per the currency exchange rate applicable for the transaction date.
Then the corresponding CDF amount will be posted to the deposit or loan account.
Mifos will have a provision to maintain daily or periodic exchange rates between various currencies. In Mifos, if no exchange rate is found for the current date, system will user the latest rate that is available on or before the transaction date.
- Loans disbursements will always be done in the account currency (no change to what Mifos supports today), however, repayments can be done in different currency but in that case exchange operation is needed.
- For financial accounting process, a special Exchange Position account and Equivalent Exchange Position account will be maintained and corresponding amounts in source and target currency posted to these accounts.
In the initial scope – Only deposits, withdrawals and repayments will be allowed in multiple currencies. Fees cannot be applied in multiple currencies. Also, loan disbursals will not be supported in any currencies other than the account currency.
Background and strategic fit
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| # | Title | User Story | Importance | Notes |
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| 1 | Deposit in non-base currency to account opened in base-currency | As a bank officer, I wish to accept deposit of money in currency-X to an account opened in base-currency | Must Have | |
| 2 | Deposit in non-base-currency to account opened in another-currency which is not the base-currency | As a bank officer, I wish to accept deposit of money in currency-X to an account opened in currency-Y and currency-X and currency-Y are not the base-currency | Must Have | |
| 3 | Deposit in base-currency to account opened in another currency | As a bank officer, I wish to accept deposit of money in base-currency to an account opened in currency-X | Must Have | |
| 4 | Maintain Exchange Rates | As an operations manager – I wish to maintain the exchange rates between various currencies and the base-currency Add a new currency exchange rate (in relation to base-currency) for a given date Change an existing currency exchange rate (in relation to base-currency) for a given date Delete an existing currency exchange rate (in relation to base-currency) for a given date | Must Have | |
| 5 | Bulk Load of Exchange Rates | As an operations manager – I wish use an excel sheet to import the date-wise exchange rates applicable between various currencies and the base-currency | Good to Have | |
| 6 | Maintain Financial Accounts related for cross-currency transactions | As a head-accountant – I wish to setup the financial accounts that will be used for currency conversions | Must Have | |
| 7 | Enable / Disable Multi-Currency | As a head-accountant – I wish to enable multi-currency financial accounting for my organization – if not enabled, then the current functionality of not allowing cross-currency transactions will continue | Must Have | |
| 8 | Multi-Currency Reporting | As a financial analyst, I need to be able to display our operating currency (DOP) in another currency (USD) for monthly and quarterly reporting (gross portfolio, disbursements, savings balance, write-offs, principal repayments, income, etc.) | Good to Have | Posted by Esperanza (Dominican Republic) |
| <similar use cases needed for loan transactions - repayments> | ||||
| <similar use cases needed for withdrawal transactions> |
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In the initial scope – Only deposits, withdrawals and repayments will be allowed in multiple currencies. The following will not be supported
- Fees applied and paid in other currencies other than the currency in which the account is opened
- Loan disbursals in other currencies other than the currency in which the account is opened
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