Account

In an AA product, the Category is used for reporting (that is, balance sheet) purposes only. Usually, a category is allocated to a specific product or family of products, although this is not mandatory. The category can be amended, if required, at the arrangement level.

Although account names are account specific, generic titles can be defaulted from the product in the Account Title field and can be replaced or given additional detail at the arrangement level.

The Short Title field is an abbreviation of the account title and is used for enrichment.

The Currency Market of an arrangement can currently be set to ‘1’ only, and Position Type can be set only to ‘TR’.

Product definition defaults Account Title and Short Title and can be overridden if allowed by the product attribute control settings. Customer Reference allows a reference known by the customer of the arrangement, to be specified for information.

The following options are available for specifying alternate access references for the account.

Mnemonic field is an alternate key which can be defined by the user to reference the account. This is the name of the arrangement.

Alternate.ID field is multi-valued in ACCOUNT.PARAMETER, which is linked to the ALT.ACCT.PARAMETER file where alternative references can be specified.

This is used to record other references by which the arrangement may also be referred.

If an IBAN number has to be generated for this product, then the value has to be set to ‘Yes’ against Generate IBAN field. The number is auto generated for accounts that are created under this product.

Specifies if the account is off-balance or on-balance.

Off-balance accounts maintain principal balance in CUR<ACCOUNT>INF balance type as opposed to CUR<ACCOUNT> balance type.

Valid options are as follows:

Memo - Indicates the account is an off-balance account. When set to ‘Memo’, the system expects a special balance type CUR<ACCOUNT>INF with reporting type set to ‘Internal’. Only the following accounts can be set to Memo:

• AR accounts if BN (Balance Netting) is installed in the company.
• External Financial Accounts (XP).
• Null - Indicates the account is a real account.

Participation - This option enables the bilateral loan to have accounting for the borrower and the investor balances.

For loan securitisation, Balance Treatment should be set to Participation. As soon as loan is booked with Balance Treatment as Participant, Transact maintains separate records for the borrower and the investor. Until the loan is securitised, the bank itself is the investor.

Specifies if accounting can be directly raised (either within Temenos Transact or outside of Temenos Transact) to the account. This is mapped to EXTERNAL.POSTING in base account record. Valid options are as follows:

• Yes - Accounting can directly be raised to the account. Null also indicates the same functionality as selecting ‘Yes’.
• No - Accounting cannot be directly raised to the account. Any accounting on this account can only happen as a result of a posting happening on one of its child accounts.

Specifies if the account supports multiple or single currency. Valid options are as follows:

• Yes - Account supports multiple currencies and accounting respects an entry in a different currency and starts maintaining balance.
• No - Account does not support multiple currencies. Null also indicates the same functionality as selecting ‘No’.

The possible values for On Restructure are as follows:

• Capitalise - Internal restructure capitalises the current period interest and charges defined in the payment schedule condition.
• Null - Internal Restructure does not capitalise the current period interest and charges defined in the payment schedule condition.

Indicates that the schedule has to be processed intra-day instead of, during the scheduled Close of Business. Early Schedule processing is the process of scheduling interest and charges on the scheduled date but earlier than the COB. This process gives flexibility to the financial institutions in dealing with interdependencies between Temenos Transact and other systems with respect to interest and charges posting.

The HVT flag if set to ‘Yes’ Iindicates whether if the account is a High Volume Transaction account. This is applicable for Accounts product line.

Passbook field in the Account Property Class, controls the printing of the passbook for an account. It is valid for any arrangement contract with a category code defined in the SAVINGS record of ACCOUNT.CLASS application.

It is possible to change the value of the Passbook field from ‘Yes’ to ‘No’, and ‘No’ to ‘Yes’ for the existing arrangement, through update Activity - ACCOUNTS-UPDATE-<ACCOUNT>.

Base Date Type field is used by AA to calculate several of the other Date fields of the arrangement and accepts values : ‘Agreement’ or ‘Start’ (Agreement is the default).

• Agreement option results in other dates being calculated based upon the effective date of the New-Arrangement activity.
• Start option results in other dates being recalculated when the first Disburse or Deposit activity occurs.

Anniversary field is used to store the anniversary of the account for restriction purposes and its value is stored in the format <MM DD>. In conjunction with restrictions, this field can also be used for general configuration across all AA.PERIODIC.ATTRIBUTES classes.

Date Convention and Date Adjustment settings indicate the action which can be taken if the derived date is a non-working day. There are four Date Convention options.

• Backward - the payment date moves backward to the last working day.
• Calendar - the payment date does not move regardless of whether it is on a working day.
• Forward - the payment date moves forward to the next working day.
• Forward Same Month - the payment date moves forward to the next working day provided it is within the same month. If it is not within the same month, it is possible for the payment date to move backward to the last working day.

For all date conventions except ‘Calendar’, Date Adjustment is used to specify whether the new date represents an adjustment of the ‘Value date’ of the entries or an adjustment of the ‘Period’ (both value and processing dates).

The holiday schedule for the country of an arrangement’s currency is referred to for determining the non-working days. The user can also specify the countries whose calendars need to be checked for holiday validation in the Bus Day Centres field. In this case, the user must include the countries of all the calendars that are to be evaluated including the country of the arrangement currency explicitly. To ease this situation, the user can add only those country holiday calendars (excluding the arrangement currency's country) that must be populated in Bus Day Centres and use the ARRANGEMENT CURRENCY value in the Other Bus Day Centre field. In this case, the holiday calendar of the arrangement's currency is also considered along with the holiday calendars of the countries specified in Bus Day Centres.

In case of month end schedules please refer Month End Repayment Schedule in Payment Schedule property class.

While entering new arrangement for account creation, system updates this field based on the value specified in the product condition of Account property class.

If this field has 'YES' as value, then the balance details of this account is not maintained within Temenos Transact and it is held by an external DDA system. Within Temenos Transact, only static information of this account is maintained.

If this field has the default NULL value, then it is like a normal Temenos Transact account, so and the balances are maintained by Temenos Transact.

Indicates the number of months (which can carry any values between 1 and 99) without customer activity before an arrangement account is declared as ‘Inactive’. Based on this value, only the arrangement accounts are marked as ‘Inactive’. This field is mutually exclusive with Dormancy property class.

This provides the user with the option to specify the basis for deriving the future event dates. This definition is currently used for deriving dates of Change Product, Rollover or Renewal and Periodic reset events only. The values allowed are as follows:

• Previous – Last adjusted event date is used for deriving subsequent event date(s)
• Base – Last unadjusted event date provided by user is used for deriving subsequent event date(s)
• Null - Change Product, Rollover or Renewal events Base date is used for deriving every event date(s)

Periodic reset event actual date is used for deriving every event date(s)

This field is optional, multi-valued, has no default value,and does not allow duplicates . It specifies the conditions under which account details or details of entries over the account are to be included; in an end of day report for referral to the account officer responsible. Referral conditions can be defined depending on transaction such as transaction code, amount and sign, or the balance of the account. The code has to be a valid record in REFERAL Table

An arrangement can be linked to customer's portfolio reference (SEC.ACC.MASTER ID) using this field. When the portfolio is linked, the arrangement is also taken into consideration during portfolio valuation for the customer. This is not relevant for product conditions. The portfolio reference has tp belong to the customer of the arrangement.

Holds the date of the latest internal restructuring of the network of parent accounts above this account, that is, the latest date when the network of parent accounts above this account, was changed. If the back value date of the statement entry is prior to this date, then the statement entry copied to the parent account is adjusted to this date. The original statement entry is not impacted.

Holds the latest restructuring date of the network of parent accounts above this account. It is set to the date when an account was added to the network of parent accounts as either a direct or indirect parent of this account. If the back value date of the statement entry is prior to this date, then the transaction is rejected with an error message.

The currency market to be used for merging balances in multi-currency accounts and limit validations is indicated against this field. If it is not entered, the currency market of the account is used.

Indicates if account is a contingent account created for limit balance purposes.

Read Accounts user guide, overdraft limits section for more information.

Indicates the number of days in advance to request a new drawdown offer. An Override is provided if the period between the trade date and the effective date is less than the number specified here. The notice days can be entered as a number of business working days (W) or calendar days (C/number). The values allowed for this field range from 0 to 999, decimal numbers are not allowed for this field. Any value other than the allowed one results in an error message.

Indicates the initiation type for the Drawdown Completion Stage. This specifies the conversion of the offer arrangement into a live arrangement. The following are the possible options.

• Auto – Drawdown is activated automatically on the effective date.
• Manual – User activates the drawdown manually on or before the effective date.

Used to specify from when posting restriction is applicable for the arrangement. When start date is a future date, then during Start of Day (SOD), base account is updated with posting restriction.

There are two ways to effect the restriction immediately.

• When the Start date is left blank, then the restriction is effected immediately.
• When the Start date is defined as current system date, then restriction is effected immediately.

It is not allowed to be prior to:

• Arrangement start date
• Current system date, if arrangement activity date is backdated
  
  It is not allowed to update start date, once restriction is active.
  

Used to specify when posting restriction finishes.

• When expiry date is a future date, then during start of day, posting restriction is removed from base account record.
• When expiry date is not defined, then it is meant that the posting restriction is for the entire life of arrangement.

Pre-defined set of blocking code that are defined in EB.LOOKUP ( BLOCK.REASON.CODES or UNBLOCK.REASON.CODES virtual table) is linked to each posting restriction. Each blocking or unblocking code is linked to corresponding posting restriction by defining them in posting restriction table without which the system does not allow to link the blocking or unblocking code.

Used to capture free text information.

Consider an account is created with nominated counter accounts as follows:

• For debit transactions - BEN2208000002 and BEN2208000004
• For credit transactions - BEN2208000005.

The Arrangement Overview is updated with the nominated counter account details as below.

The BENEFICIARY.LINKS table is updated with records of the beneficiaries defined in the Settlement condition for the account/deposit. This is irrespective of the account/deposit having a nominated counter account.

When an account/deposit has a nominated counter party updated, the BENEFICIARY.LINKS table is updated with Counter Type as Yes whilst for beneficiary update in the Settlement condition, the Counter Type field is not populated.

In the above illustration , the BENEFICIARY.LINKS application is updated with records of the nominated counter accounts for the arrangement. The Counterparty Type field is set to indicate that the beneficiaries are nominated counter accounts for the arrangement.

Such a beneficiary added for the purpose of counter accounts has the Internal Flag set in BENEFICIARY application. This flag indicates that the beneficiary record can be purged when there are no accounts/contracts linked to the beneficiary for processing.

It is possible to trigger notifications for a change in the nominated counterparty and/or a change in the beneficiary details of the nominated counterparty by a suitable configuration in an account or a deposit arrangement.

Illustration - Notification for Nominated Counterparty Details in an Arrangement

The Activity Messaging condition for the account is configured to notify the customer about the nominated counter account details for the arrangement when the account condition is updated.

When the nominated counterparty details are updated/changed in an arrangement, the system generates a notification which is available in the Correspondence tab of the Arrangement Overview page.

Illustration - Notification for Change in Beneficiary Details of a Nominated Counterparty

The Activity Messaging condition for the account is configured to notify the customer when there is a change in the beneficiary details (such as Beneficiary IBAN/ Account number). This notification is configured using the named non-financial activity to record the event of beneficiary update triggered from the TEC.ITEM released for the BENEFICIARY-SERVICE Event Type.

The IBAN of the BEN2208000005 beneficiary, which is a nominated counter account for the arrangement in the previous illustration arrangement, is changed in the BENEFICIARY application.

The ACCOUNTS-RECORD-BENEFICIARY.UPDATE non-financial activity is triggered in the AA arrangement (as per the Activity Mapping definition) when the beneficiary details are modified.

The system generates a notification, about the change in the IBAN of the beneficiary which is available in the Correspondence tab of the Arrangement Overview page.

• Balance Treatment attribute allows to define an Account product to be off-balance sheet.
  • When this is set, during Proof and Publish, and at arrangement level, system expects a Balance Type for the Account property with a suffix ‘INF’ and that balance type has to be set with Reporting Type as ‘Internal’. For example, if BALANCE is the name of the Account property, then this AC balance type is ‘CURBALANCEINF’.
  • Even if an account is set as Off- Balance (Memo), it is a fully operational account from a customer perspective (Cheques can be issued, incoming or outgoing payments can be handled as usual).
• All transactions posted are converted to a memo posting on this account and the real entry diverted to the linked real account (specified in Linked AC Number).
• All Interest and Fees specified on this Memo Account is treated as Memo Interest or Fees. The system automatically suppresses any real accounting to the PL and Payables or Receivables.

It is still possible to specify capitalisation frequencies for these Memo Interest or Fees

Read Settlement Property Class for more information.

• Link Ac Number attribute is used to specify any diversion account, at the arrangement level.
  • This then gets mapped to the Auto Pay Acct field in account record.
  • For a normal AR account to have Link AC Number populated would simply translate into the Auto Pay Account feature (where the incoming Real entry is simply diverted to the linked account).

Read Financial Accounting user guide to know more on Memo Accounting Entry for Transaction Accounts.

• Parent Account attribute is used to specify any parent account within a bundle hierarchy, at the arrangement level.
  • Input in this attribute is not allowed if the arrangement is not part of a bundle hierarchy.
• These memo accounts can be on their own or as part of a bundle (Balance Netting) hierarchy

Read Balance Netting user guide for more information.

• When part of a hierarchy, they can either be the accounts on which transactions are done performed or as a Summary Account.
• When defined as a Transaction Account, it is important that they are linked to a Real Account for funds diversion so as to reflect the aggregate position per currency. The Link AC Number attribute is used for that purpose.

The External Posting attribute is used to control who can raise postings on the account.

• If it is set to ‘No’, the system does not post the transactions directly on these accounts; and that any posting on these accounts is only a result of a posting happening on one of their child transaction accounts; or, as a result of funds diversion from a memo transaction to an On-balance account.
• The term External means any application outside the core accounting engine, which means even AA’s own schedule processing cannot raise any accounting that hits the Principal Balance of that account (for example, Capitalise ).

• The system, uses the Link Ac Number, to do memo posting on the TR account and a real posting on the relevant CT account, when a credit or debit hits a TR account.

Using the PARENT.ACCOUNT at every level (TR, CS, SA and etc), the system also knows to raise memo posting on the parent accounts as well.

• When a transaction is done on the TR, it can be observed that it is reflected as a memo on the TR, memo on SA and a real posting on the CT. Individual Posting is reflected on the Linked AC Number (CT Account). The relevant balances are also updated in EB.CONTRACT.BALANCES.

• Multi.Currency attribute allows to enable a memo account to maintain balances (ACCT.BALANCE.ACTIVITY and EB.CONTRACT.BALANCES) in currencies other than the currency of the account itself.
• A multi-currency summary account in a Balance Netting Hierarchy can have children belonging to any currency.
• Whenever a transaction hits the child, it gets replicated at the parent summary level. If this parent summary account is enabled for multi-currency, then system starts to maintain its balance based on the incoming currency.
• Accruals and Capitalisation or Make-Due or Pay still happens only in the currency of the account but the system can convert the balances across currencies into the account currency and aggregate them as the source balance.
• Balance Conversion Mktattribute can be optionally used to dictate the rates with which this Conversion (both at Limit Check and Interest Processing) happens.

The following attributes in Account property class are better captured at the arrangement level:.

• Bundle Arrangement - used to capture the Arrangement reference of the Bundle Hierarchy
• Link AC Number - the On-balance sheet diversion account
• Parent Account - Parent account within the Bundle Hierarchy (Input is allowed only if Bundle Arrangement is specified)