Bonus / Rewards for Deposit Accounts

Target release
Epic
Document status	DRAFT
Document owner
Designer
Developers
QA

Overview

This feature will allow an bonus amount or a reward to be posted to a customer's deposit account.

Background and strategic fit

Many financial institutions give additional credits to customer's deposit accounts. Examples:

A customer in India may get a bonus amount of 2 Rupees credited to his/her account for every online mobile transaction.
A customer in Africa may get dividend posted to his/her account. This dividend is computed pro-rated based on the balance available for each of the 12 months in a year. The dividend may be applied manually for each account.
A financial institution gives a one time bonus of X amount to the customer on opening the account

Currently there are only 2 ways in which an amount can be credited to a customer's deposit account:

a) As a deposit

b) As an interest amount applied to the account

Requirements/User Stories

#	Title	User Story	Importance
1	Transaction Bonuses	As an Operations Manager, I wish to set up a bonus that will be credited to the account whenever a customer does certain types of transactions using one or more channels or payment types	Must Have
2	Account Balance based Bonuses	As an Operations Manager, I wish to set up a bonus that will be credited to the account at certain periods based on the balance (minimum balance or average balance etc.) available for a certain period	Must Have
3	Set up Accounting for Bonuses	As an accountant, I wish to associate the bonuses to various expense accounts (or asset accounts, if they are receivables) to bonuses defined	Must Have
4	Manual crediting of bonus to a customer account	As a back office user, I wish to credit an ad-hoc amount as bonus to a customer's account	Must Have

Business Rules

TBD

Attributes

A new entity called Bonus will be captured. Bonus will have the following inte.

Attribute	Description	Notes
Bonus / Reward Name	Name given to this bonus	Mandatory. Text (75)
Applies To	Which type of deposit accounts this is applicable for	Mandatory. Dropdown of Savings, Current Accounts, Term Deposits and Recurring Deposits
Active	If this Bonus is Active or Inactive	Optional. Checkbox. Defaulted to active for new bonuses.
Allow Manual Entry?	If this checkbox is enabled, then system will allow a manual bonus to be applied (for example: an "Apply Bonus/Reward" button will be present - similar to Deposit button. This button will allow user to apply an amount as bonus or reward manually)	Optional. Checkbox.
Bonus / Reward Based On	Whether the bonus is applicable for bonuses or whether it is computed on account balances	Optional. Dropdown with "Transaction Amount", "Account Balance". "Account Balance" - can be treated as a lower priority requirement.
Transaction Types	(displayed and set only when "Bonus / Reward Based On" is set to "Transaction Amount") List of transaction types for which this bonus is applicable	Optional. List of checkboxes or multi-select listbox. With various transaction types: Account Opening, Deposits, Withdrawals, Interest Posting, Transfers, Standing Instruction etc.
Payment Types	(displayed and set only when "Bonus / Reward Based On" is set to "Transaction Amount") List of payment types/channels for which this bonus is applicable.	Optional.
Posted When	(displayed and set only when "Bonus / Reward Based On" is set to "Account Balance") Specifies when the bonus is to be posted	Optional.
Bonus / Reward Calculation	Whether it is flat or a percentage of transaction or account balance.	Mandatory. If percentage is selected, then "Bonus / Reward Based On" cannot be null.
Amount / Percentage	Amount or percentage applicable for this bonus	Mandatory
Of	If "Bonus / Reward Based On" is set to "Account Balance" then dropdown will have "Average Account Balance" and "Minimum Account Balance" If "Bonus / Reward Based On" is set to "Transaction Amount" then dropdown will have "Transaction Amount" - which will be defaulted	Optional. Dropdown.
Currency	Select a currency for this bonus	Mandatory. Dropdown.

Security and Permissions

Following permissions needed:

Add, Update, View, Delete functionality for Bonus

Apply Bonus Manually

Apply Bonus Batch job

Mifos Functionality Enhancements

New Screens

New screens for maintaining the Bonus / Rewards
New screen for manually applying a Bonus to an account

Changes to Existing Screenst

Change Product screen to allow a Bonus or Reward to be attached to a product
Change Product screen to allow accounting entries i.e. allow a GL Account to be attached to all Bonuses and Rewards
Change Product screen to allow advanced accounting entries i.e. allow different GL Accounts to be attached to different Bonuses and Rewards
Change Deposit Account Screens to show a button (under "More") to "Apply Bonus / Reward"

Changes/Enhancements to Batch Jobs

Batch job needed to apply account balance based Bonuses

Changes/Enhancements to Accounting Entries

User interaction and design

New screen for maintaining the Bonus / Rewards
Product screen changes to allow a Bonus or Reward to be attached to a product
Product screen changes to allow accounting entries i.e. allow a GL Account to be attached to all Bonuses and Rewards
Product screen changes to allow advanced accounting entries i.e. allow different GL Accounts to be attached to different Bonuses and Rewards
New screen for manually applying a Bonus to an account

Exception Handling

Reporting

APIs

Notes

Questions

Below is a list of questions to be addressed as a result of this requirements document:

Question	Outcome

Mifos X