Other Debit Function - Introduction

This function basically allows user to do the followings:-

  • Debit account on any adhoc charges or fees (e.g., Processing Fees, and Administrative Fees) that the banks or financial institutions may impose.

  • Debit account on advance items (e.g., Insurance Fees, and Legal Fees)

The present default income treatment of this function is that once a charges or fees amount has been debited into the account, regardless whether the charges or fees amount has been collected, system will treat that income has been earned with related accounting entries raised upon the 'End-of-Day' periodic process completed in system on daily basis.

The related GL accounts that are requires to be pre-set up for this function, are as follows:-

  • Credit facility account (the debtor GL account by credit facility product)

  • Credit product charges or fees, or advances charged (the charge, or fees, or advances GL account by credit facility product)

  • Credit facility income (the fees and charges that will be treated as income by the credit facility product)

  • Journal GL account to park the respective advance item amount for subsequent payout to the relevant parties

  • Related Currency Journal Clearing GL account (the intermodule journal clearing GL between Common Business Services area and Loans area)