Accounting entries for financial transactions,
- Bill
- Payment
- Adjustment
Bill:- If a bill segment has a financial effect, the distribution code to debit comes from the distribution code on the obligation type; the distribution codes to credit come from the calculation lines used to calculate the bill segment. Calculation rules define the distribution codes to be used when creating bill calculation lines.
Payment:- Payment segments always have a financial effect; the distribution code to debit comes from the bank account on the tender source of the tender control of the tender, the distribution code to credit comes from the obligation type.
Note: The information in this topic refers to bills created using calculation rule based functionality. For details of the source of FTs for rate-based bills
- Bill
- Payment
- Adjustment
Bill:- If a bill segment has a financial effect, the distribution code to debit comes from the distribution code on the obligation type; the distribution codes to credit come from the calculation lines used to calculate the bill segment. Calculation rules define the distribution codes to be used when creating bill calculation lines.
Payment:- Payment segments always have a financial effect; the distribution code to debit comes from the bank account on the tender source of the tender control of the tender, the distribution code to credit comes from the obligation type.
Note: The information in this topic refers to bills created using calculation rule based functionality. For details of the source of FTs for rate-based bills
How the adjustments affect the general ledger (GL) :-
• For many adjustments there is a single accounting entry generated:
• One side of the accounting entry is taken from the distribution code on the obligation type of the obligation affected by the adjustment. For example, if you are adjusting the payoff balance on a normal obligation, the A/R account is constructed from the distribution code on the obligation's obligation type.
• The other side of the accounting entry is taken from the distribution code on the adjustment's adjustment type.
• For transfer adjustments (i.e., adjustments used to transfer moneys between two obligations), there are two accounting entries generated - one for the "from" side and one for the "to" side. Each adjustment carries its own set of balanced GL accounting details.
• For each adjustment, one side of the entry is taken from the distribution code on the obligation type of the obligation affected by the adjustment
• The other sides of both accounting entries have the same GL account. This account should be the intermediate clearing GL account that is to be used for the transfer. The source of this clearing GL account is the distribution code on the adjustment type used to transfer the funds.
• For generated adjustments, the accounting entry may include several GL details:
• One side of the entry is taken from the distribution code on the obligation type of the obligation affected by the adjustment.
• The other side of the entry depends on configuration on the adjustment financial transaction algorithm. If it is configured to use the Calculation Lines as the source, the distribution codes are taken from the calculation lines. If it is configured to use the adjustment type as the distribution code source, the other side of the accounting entry is taken from the distribution code on the adjustment type.
• For many adjustments there is a single accounting entry generated:
• One side of the accounting entry is taken from the distribution code on the obligation type of the obligation affected by the adjustment. For example, if you are adjusting the payoff balance on a normal obligation, the A/R account is constructed from the distribution code on the obligation's obligation type.
• The other side of the accounting entry is taken from the distribution code on the adjustment's adjustment type.
• For transfer adjustments (i.e., adjustments used to transfer moneys between two obligations), there are two accounting entries generated - one for the "from" side and one for the "to" side. Each adjustment carries its own set of balanced GL accounting details.
• For each adjustment, one side of the entry is taken from the distribution code on the obligation type of the obligation affected by the adjustment
• The other sides of both accounting entries have the same GL account. This account should be the intermediate clearing GL account that is to be used for the transfer. The source of this clearing GL account is the distribution code on the adjustment type used to transfer the funds.
• For generated adjustments, the accounting entry may include several GL details:
• One side of the entry is taken from the distribution code on the obligation type of the obligation affected by the adjustment.
• The other side of the entry depends on configuration on the adjustment financial transaction algorithm. If it is configured to use the Calculation Lines as the source, the distribution codes are taken from the calculation lines. If it is configured to use the adjustment type as the distribution code source, the other side of the accounting entry is taken from the distribution code on the adjustment type.
PSRM basic accounting Entries:-
The table explained the basic PSRM accounting entries
Financial Transaction Example screen for Payment event:-
