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keithwoodlock Sander van der Heyden
Take this description with a pinch of salt (I intend to have a relook in to the same in the morning and check if it makes any sense)
Lets take this scenario:
A Bank has two Products
A Savings Product SA1: All deposits and withdrawal are collected via "Cash"
A Loan Product LA1: For which the fund source is set to a bank "Bank Account" (assume loan transactions are done exclusively by Checks)
Now:
a Client has both accounts
1) Client Makes a deposit of Rs 100 to SA1 (Debit "Cash" and Credit "Savings Control" )
2) Client is Disbursed a Loan of Rs 1000 (Debit "Loan Portfolio" and Credit "Bank Account")
3) An account Transfer is made between Savings account and the Loan account
the current Implementation breaks the transaction down to
(a) First Withdraw Rs 50 from Savings (Debit "Savings Control" and Credit "Cash")
(b) Next make a Repayment of Rs 50 on the Loan (Debit "Bank Account" and credit "Loan Portfolio")
4) At some point in Time, the loan account is overpaid, so we refund the overpaid amount (say 200) to the Client
the current Implementation breaks this transaction down to
(a) First "Refund" the money from the overpaid account (currently not properly accounted)
(b) Then make a Deposit to Savings (Debit "Cash" and Credit "Savings Control")
Should we be arbitrarily manipulating Fund sources this way? (which may be different for different products/ types of products )
In case of 3, I would think the accounting transaction should be: Debit "Savings Control" and Credit "Loan Portfolio"
In case of 4, I would think the accounting transaction should be: Debit "some Liability Account that tracks overpayments" and then
credit "Savings Control"
i.e I would assume, if the MFI actually wants to move amounts between Cash and Bank accounts, etc they would do so through manual journal entries and the system should not be generating any automated transaction.
I would suggest that we should identify all such transactions explicity as "Account Transfer" (that is not treat them as break down into repayments/ deposits etc)
And accounting should map back to m_savings_account_transfer Table (where we currently track back to loan transaction or savings transaction for tracebility) and create entries which only represent the act of either adjust a savings liability with another savings liability / a Loan portfolio asset and vice-versa
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