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| # | Title | User Story | Importance | Notes |
|---|---|---|---|---|
| 1 | Automatic periodic accrual for deposits | At the frequency specified by the head accountant, Fineract internally invokes a batch job that will take the current date as input and recognize all unrecognized income and expenses for deposit products till this date | Must have | |
| 2 | Manual accrual for deposits | As a head accountant, I wish to manually invoke the accrual job on a specific date to recognize all income and expenses for all deposit products till this date | Must have | |
| 3 | selected charges/fees to be considered for accrual (only for savings related charges) | As an organization, there would be few charges which are not required to be accrued(for ex:- charges charged at the beginning of the loan) and few charges are to be considered for accrual. Need an option at the charge product level to select the particular charge to get recognized as accrual income or not. NOTE: accounting entries are mentioned below | Must have |
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Deposit Products need to capture new additional accounting General Ledger heads under which accrual of incomes and expenses will be done.
| Under Assets | Under liability |
|---|---|
| Fees Receivable | Interest Payable |
| Penalties Receivable |
Journal Entries for Interest posting
| Accrual Recognition Transaction for Interest JE | Actual Interest Posting Transaction JE |
|---|---|
| Interest on Savings (Expenses) Dr Interest Payable (Liability) Cr | Interest Payable (Liability) -Dr Savings Control (Liability) - Cr |
Journal Entries for fees/penalties posting with accrual entry configured at the charge product level
| When a customer is charged a Fee/Penalty JE | Recognition of Fees/Penalty Income JE |
|---|---|
| Savings Control (Liability) Dr Fees Receivables/Penalties Receivables (Asset) Cr | Fees Receivables/Penalties Receivables (Asset) Dr Income from Fees/Penalties (Income) Cr |
Journal Entries for fees/penalties posting without accrual entry configured at the charge product level
| Recognition of Fees/Penalty Income JE |
|---|
| Savings Control (Liability) Dr Income from Fees/Penalties (Income) Cr |
Exception Handling
- If income and expense were recognized already for a deposit account on or after the date specified, and there is no new backdated transaction for this account, then the batch job will skip this deposit account.
- Any undo or redo of financial transactions at the deposit account level should adjust the already posted accrual transactions according to the new values.
- The system should not post accrual entries for dates before the last accounting closure date. the system should display the deposit account IDs where accrual posting didn't happen because of the closure date after the job is complete. (this is helpful for investigation)
- Deposit product accounting setting should override the charge product level accrual settings
- example:- if a charge product is set to post accrual transactions and if the deposit product is having cash accounting, then the charge associated with that deposit product will post only the "Recognition of Fees/Penalty Income JE" entries for those deposit accounts.
- When the product accounting is set to cash based, then all charges should obey the cash based settings and JE should be passed as Cash based. when the product is set to accrual accounting, then charges that has accrual enabled, should post accrual JE, and charges that doesn't have accrual enables, should post cash based JE entries.