Working with Migration of Account Details
Validations during Takeover Process
The following validations or restrictions have been put in place during this AC-AR takeover process.
- Original Contract Date must match with AC Opening Date
- Account should not have been
- Marked for Pending Closure/Closed
- Suspended (Int No Booking in ACCOUNT is not left blank)
- Account should not have
- Unauthorised movements
- Forward Exposure Dated entries
- Account should not have
- Another account as Interest Liquidation / Charge Liquidation Account
- Interest Compensation Account field updated (should be blank)
- Auto Pay Acct NOTE: The Link Ac Number attribute in ACCOUNT Property can be used to capture this attribute (this attribute in turn, maps to Auto Pay Acct in ACCOUNT record)
- Account should not be attached to an Interest Compensation Pool (meaning an account that is part of ICA hierarchy).
- HVT Account cannot be taken over. (Read the Takeover from AC to AR section to know about Handling HVT during Takeover from AC to AR)
- The accounts still under an AZ Contract (All-In-One module = YES) cannot be taken over.
Takeover of Account Balance from AC to AR
DM Tool can be used for bulk takeover of account from AC to AR. Accounts Takeover Arrangement Activity Class is used for the Takeover Account.
Illustration
For easier understanding, the illustration below is given based on a user taking over an AC account (2000003282) into an AR Arrangement through the standard user interface.
Account to be Taken-over
The Account (2000003282) balance is seen in the below screenshot.
- Accrued Debit Interest (51000): 205.48
- Principle Balance (CREDIT): 1,500,000.00
- Accrued Credit Interest (50000): 1,130.14
Capturing the Details
- To retain the AC account number, the user captures the following:
- Customer
Existing Customer in ACCOUNT record must be registered as the first owner and their Role set with Beneficial Owner as Yes and GL Customer as Yes.
- This is to ensure that the same customer number remains as the GL Customer on the ACCOUNT record.
- Joint Holders in the ACCOUNT record need to be registered as Joint Owners in AA.
- Currency of the AC Account
- AR Product
- Accounts Takeover Activity as Activity
- AC Opening Date as Orig Contract Date
- AC Account number through the Property, Field name and Field Value multi-value set.IMPORTANT: The Original Contract Date field must match with AC Opening Date. The system raises an error in case of any mismatches here.
NOTE: Since the AC Account had a balance, the accounting is raised by the system to park it in an internal account and then bring it back into AR account.
- Customer
- The Property field is updated with Account Property of the Product and the Field Name is Account Reference with Field Value as the AC Account number itself.
In the sample screenshot below,
- ACCOUNT property name : BALANCE
- Field Name to update : ACCOUNT.REFERENCE
- Field value to be supplied : 2000003282
- After validating the Activity, Properties of Arrangement Account open up. Attribute values are defaulted from the Product Condition and are negotiable based on the Product setup.
- AC Account is taken-over into an AR Arrangement along with its Principle Balance when this Activity is committed or authorised.
Account after Takeover
The Condition Group in Account is cleared and Arrangement ID is updated in the ACCOUNT record.
Takeover of Interest Accruals from AC to AR
The Balance Maintenance Property Class allows the users to capture or adjust bills and capture or adjust the balances of the bill.
The ACCOUNTS-CAPTURE.BALANCE-BALANCE.MAINTENANCE Activity is used to move the interest accruals from AC Account to AR Account. DM Tool can be used for bulk takeovers.
Illustration
For easier understanding, the illustration below is given based on a user taking over the AC account Interest Accruals into AR.
- Given below is the balances of the account taken over earlier.
- Accrued Debit Interest (51000): 205.48
- Principle Balance (CREDIT): 1,500,000.00
Based on the Takeover Activity in the previous step, the system generated a debit and credit movement on the Principle balance (CREDIT) to bring the balance into AR (ACCT.BALANCE.ACTIVITY).
- Accrued Credit Interest (50000): 1,130.14
- To take-over the Accrued Interest, the user captures the following
- New Balance Amount – Accrued Interest Amount
- Adjust Property – Name of the Interest Property
- Adj Bal Type – The AC Balance Type of the Interest Property to store the accruals namely ACC<PROPERTY>
- In the screenshot below,
- The Debit Interest Accrual ‘205.48’ is captured as New Balance Amount corresponding to Adjust Property DRINTEREST Adjust Balance Type ACCDRINTEREST
- The Credit Interest Accrual ‘1,130.14’ is captured as New Balance Amount corresponding Adjust Property CRINTEREST and Adjust Balance Type ACCCRINTEREST
- Given below is the balances of the account after the Interest accruals are taken over from AC to AR.
- Credit Movement on ACCCRINTEREST against Debit Movement on 50000
- Debit Movement on ACCDRINTEREST against Credit Movement on 51000
- From this point on, the AC account is fully operational as an AR arrangement.
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