Introduction

When a savings account is in Approved status, the following types of transactions can be made to the account:

• Deposits
• Withdrawals
• Adjustments
• Interest posting

Each of the transaction entries described here is made against the correct GL Code, according to the chart of accounts defined for the HO. The transactions are not included in the change logs.

Deposits and withdrawals

For mandatory savings accounts, the total due, including amounts not paid in past meetings, and the date, are displayed on the account details page. If the mandatory deposits are specified as per group member, then deposits made against Non-specified do not reduce the amounts to be deposited by each group member. This is applicable to all center savings accounts as well.

For voluntary savings accounts, a recommended amount is displayed on the account details page.

The user specifies the following when making a deposit/withdrawal:

• Type of transaction: (Deposit/Withdrawal)
• Amount
• Date of transaction
• Mode of payment
• For client accounts:  Client name. The list includes of all the clients of the group/center and one Non-specified option. Clients in Approved and On Hold states are listed.
• Receipt ID
• Receipt date

For mandatory accounts, the amount deposited can be less than or equal to or greater than the mandatory deposit amount, with the following implications:

• If the amount is less than the mandatory deposit amount, the balance due but not paid is displayed in Past amount due section.
• If an amount greater than the mandatory deposit account is deposited, this will not affect the next deposit due.
• If partial payment is made, Mifos applies the amount against the oldest mandatory payment first.

The system records the date of transaction and the username. The user previews and saves the information. The system performs basic error checking and records the transaction date and the user name and records the transaction and updates the savings account balance.

Note : Even though the current account balance is shown as one value (sum of all debits minus all credits), the system can detect if, for example, an adjustment is made, whether it was a withdrawal or a reduction of interest earned .[correct?]

Savings adjustments

To rectify errors/mismatches, users with appropriate permissions can modify or nullify the amount last paid. The system then reverses the last entry (withdrawal or deposit) and creates another transaction for the new deposit. The corresponding financial transactions entries (DR/CR) are made.

For mandatory accounts:

• If the last transaction was a deposit, and it is nullified or decreased, the system decreases the account balance, ensuring that the adjustment does not create a negative account balance. A negative adjustment cannot be entered.

• If the last transaction was a withdrawal, and it is nullified or decreased, the system updates the account balance accordingly. But if the amount is increased, the system ensures that the withdrawal is not greater than the account balance. A negative amount cannot be entered.

For voluntary accounts:

• The amount can be nullified/decreased or increased.
• If the last transaction was a deposit, and it is nullified/decreased or increased, the system updates the account balance accordingly.
• If the last transaction was a withdrawal, and it is nullified or decreased, the system updates the account balance accordingly. But if the amount is increased, the system ensures that the withdrawal is not greater than the account balance

For group/center savings accounts, if the last transaction is nullified, it is adjusted against the client who made the transaction.

Bulk entry. For center savings accounts, there can be multiple deposits and/or withdrawals. For adjustments, the system picks up the amount under the non-specified option of the center account as the last transaction. If this is empty, the system allows an adjustment on the transaction made for the last client. A similar rule applies to group savings accounts.

Interest posting

More on interest posting and calculations here

Transaction history

This section records all amounts that were deducted or added to the account.

The details recorded are:

• Date of transaction: For deposits/withdrawals and payments, this is the user-entered date of transaction.
• Transaction ID: ID generated by the system for each transaction
• Type: Type of transaction is one of the following:
  • Deposit
  • Withdrawal
  • Interest
  • Adjustment
• GL Code: GL Code against which this has been recorded
• Debit
• Credit (note that it will be either debit or credit per transaction)
• Balance: System updates the account balance after every transaction and displays this balance in transaction history.
• Date Posted: Recorded and displayed by the system.
• Posted By: username of the user recorded and displayed by the system.
• Client name: for groups and center accounts