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Hi Vishwas,
Currently we do y our 'dirty' approach in Musoni Kenya, which essentially just updates all clients, groups, loans and transactions related to the transfer with the new branch-code. However the preffered approach has always been something along these lines:
When transferring portfolios between different officers:
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All closed loans remain with the old officer
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All open loans, the client and the group are transferred to the new officer, resulting in this officer getting the OLB/PAR and performance figures of this client attached to his name
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Nothing to happen with accounting as the journals are not linked to loan-officers, but to branches. So all interest income and OLB remains unchanged.
When transferring portfolios between branches (with or without officer):
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All closed loans with their IIR remain in their existing branches
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All OLBs/PAR on open loans get transferred to the new branch on the date of the transfer
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The IIR recognized until the date of transfer remains in the existing branch, all future IIR goes to the new branch.
In terms of accounting this means that the only GL booking that will happen for this is a booking to transfer the remaining principal from the old branch to the new branch. From the accounting perspective we would like to design a simple report that will show all transactions related to a loan from the Accounting perspective, which would allow auditors/accountants to view all bookings including the transfer from one branch to the other of the OLB and therefore be able to reconcile IIR recognised in the specific branch. However, the caveat will be that if you add up the IIR on all outstanding loans (from OLB Totals or similar report) on a certain branch that might not reconcile with the IIR in the accounting for the same branch.
Keen to hear your thoughts.
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