Re-look at Account Transfers

Owned by Vishwas Babu A J
Last updated: May 19, 2014

 

Accounting Rules:

 

Based on the discussion in the comments below, accounting rules shall be the same for both inter/ intra branch transactions

  • 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  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(pr-a) to savings(pr-b) where pr-a is a withdrawal and 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) in Branch B:  Debits a Liability account for "Branch Liability Transfer" and Credit b's Savings Control

 

Branch Liability Transfer account shall be defined at an organizational Level

 

 

[Conversation with @pramod :  Under https://demo.openmf.org/#/accounting, lets add a new section for "Map Organizational Accounts"

 

Here, a user will be able to edit predefined accounting types like "Suspense account for Liability Transfer", "Suspense account for Asset Transfer" or "Teller Cash Account". Need a set of API's for the same