Configuring Migration of Account Details

• Designate a category for internal wash-through account and setup the U-ACSUSPENSE, Account Class record as shown below

  

• During the ACCOUNTS-TAKEOVER-ARRANGEMENT Activity, when the user specifies an existing AC account, the system raises appropriate accounting to move the AC balance to this internal account and then moves it back after linking the AC account to the AR arrangement.

  This happens within the same transaction boundary and results in ACCT.BALANCE.ACTIVITY updated with this movement in.

• Temenos released AC Events are used during balance movements from AC account to AR arrangements.
• During ACCOUNTS-TAKEOVER-ARRANGEMENT, the system uses ACCOUNT-BALANCE.MOVEMENT-DUE or ACCOUNT-BALANCE.MOVEMENT-PAY events depending on whether the account balance is in debit or credit respectively.

  The ACCOUNT-BALANCE-MOVEMENT-DUE recordis shown below.

  

  The ACCOUNT-BALANCE-MOVEMENT-PAY record is shown below.

  

• Specific Configuration is required for these special AC Events in AC Allocation Rule similar to the screenshot below.

  

• The contra is mapped to suspense account configured through the ACSUSPENSE Account Class. Hence, contra is INT*U-ACSUSPENSE.
• The Re Txn Codes are only relevant for the contra side.
• The Print Mask is set to Yes, which helps in masking these movement entries from appearing in Account Statement.
• The required setup in corresponding AC.POSTING.DETAIL record is given below:

  

The BALANCE.MOVEMENT is a purpose built action to facilitate takeover of principle balance from AC to AR.

In the Accounting Condition, ensure that appropriate Allocation Rule is mapped against the Account Property / Class and that the BALANCE MOVEMENT Action is defined in the list of actions.

• There are four types of Interests, which are possible in an AC account and their Balance Types are as in the table below.

  Interest Type	Balance Type
  CR	50000
  CR2	50100
  DR	51000
  DR2	51100

• The AA Interest Property Class allows multiple Properties to be created under it.
  • The Balance Types for these would be based the Interest Property prefixed with ACC that is, ACC<INTEREST>.
  EXAMPLE: ACCCRINTEREST and ACCDRINTEREST for CRINTEREST and DRINTEREST Properties respectively.
• If the Account Product is configured with CR2 and/or DR2, it means that the AR product has two corresponding Interest Properties as well.
• When taking over accrued CRINTEREST, the system has to post the offsetting entry against the Asset Type 50000 (corresponding to AC Interest Type CR). Similarly, for DRINTEREST, it has to post the offsetting entry against the Asset Type 51000.
  • In order for the system to understand this, ACCOUNT.CLASS has to be setup along with relevant AC.BALANCE.TYPE records to be created.

The ACCOUNT.CLASS records named with the respective Interest Properties, for which the accrual has to be captured, provide a mapping for the system to determine the contra side of the Capture balance accounting.

ACCOUNT.CLASS records:

• U-<<Credit Interest Property>> (the property which corresponds to IC’s CR)
  • RECORD.TYPE = PL
  • CATEGORY = 50000
• U-<<Credit Interest Property 2>> (the property which corresponds to IC’s CR2)
  • RECORD.TYPE = PL
  • CATEGORY = 50100
• U-<<Debit Interest Property>> (the property which corresponds to IC’s DR)
  • RECORD.TYPE = PL
  • CATEGORY = 51000
• U-<<Debit Interest Property 2>> (the property which corresponds to IC’s DR2)
  • RECORD.TYPE = PL
  • CATEGORY = 51100

A sample screenshot for CRINTEREST Property created in Account Class record is shown below.

The AC.BALANCE.TYPE records have to be created for the four Interest categories.

50000, 50100, 51000, 51100 are created as Non-Contingent Spec Entries with Activity Update as Y.

A sample screenshot of AC.BALANCE.TYPE is given below

Standard AA Capture Balance is used to capture accrued debit and credit interests. The INTEREST-DEBIT-DUE-ADJ.DR and INTEREST-CREDIT-DUE-ADJ.CR events are used to move debit accruals and credit accruals respectively from the AC account to AR arrangement.

The record INTEREST-DEBIT-DUE-ADJ-DR is shown below.

The record INTEREST-DEBIT-DUE-ADJ-CR is shown below.

Allocation Rules have to be configured for the CREDIT-DUE-ADJ.CR, DEBIT-DUE-ADJ.DR events.

In Accounting Condition, ensure that appropriate Allocation Rule is mapped against the Interest Property / Class and that the ADJUST Action is defined in the list of actions. The system uses this action during a Capture Balance Activity that is used during take over interest accruals.