T24 Accounts - T3TAC - R11.

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 This course is about the T24 application Accounts and other related
Applications.
The course will enable you to handle Accounts implementation with the
knowledge of :
The dependencies and linkages between Account module and T24 Core and
other applications.
Main business features of the Account module.

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 ACCOUNT application caters to creation and maintenance of all types of
accounts handled by T24. In T24, Accounts can be classified as two types,
namely Customer account and Internal type of account. Customer accounts are
accounts opened for and owned by external customers. External customers in
the sense that it should be a valid counter party. Internal accounts are accounts
maintained by the bank for its own purpose, like cash account, Travelers'
Cheque etc.
Accounts module provides for calculation, accrual and application of interest
on customers' accounts. Interest could be either a Fixed or a Floating rate.
Further it can be level or banded. In addition, it is used for calculation of
charges relating to maintenance and servicing of accounts. Rules for interest
and charges can be set for an individual account or for a group of accounts.
T24 Account table stores only the static information of the account. The
financial data is updated in EB.CONTRACT.BALANCES. ECB has the fields
to display the updated account balance field, Date moved fields and Exposure
management fields
It is also used for production of account statements and issue of passbook for
certain class of customer accounts.
It is possible to handle cheque book management in T24 like issuing,
controlling stock, recording payment, noting and effecting stop payment

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 instructions.
By linking to another related module called image management, it is possible to verify
signature of account holders. ACCOUNT module has a separate application called
ACCOUNT.CLOSURE for closing accounts. Sweeping of balances between accounts
can also be handled.
A separate course is available for Account sweep and cash pooling.

All the transactional balances and data are held on the EB.CONTRACT.BALANCES
record for the account.

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 We need to have Customer records to refer counter party in the case of
customer type of accounts. Customer details such as name, nationality,
residence etc., are not entered in individual account record. These are held in
the customer base record and will be taken from Customer record as and when
required.
Delivery system is used to produce account statements, interest statements and
interest/ charges advices. Formats, addresses and number of copies required
are specified within the delivery system. Interest and charges advices may be
printed or sent via SWIFT. Interest and charges module passes the required
information to delivery system, which transforms it into appropriate messages.
Accounting entries are raised for accrual and capitalisation of interest and
charges. When transactions are input upon various contracts and accounts, the
appropriate account balances are updated on real time basis.
FX contracts require settlement accounts and other contracts like MG, LD and
MM requires drawdown account and liquidation accounts.

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 Category codes are used to classify financial products based on the type of
business operation or product. The first two digits of the Category code
represent the highest level classification and the next three digits represent a
sub-classification.
Although it is possible to have Customer type accounts defined in the
Category range of 1000 to 9999, suggested range of sub categories for
different types of accounts are mentioned.
If there is need for defining additional sub-classifications, care is to be taken to
ensure sufficient details do not already exist to provide required breakdown.
For example, we need not define separate CATEGORY codes for resident and
non-resident customers or for local and foreign currency transactions. The
category codes together with other CUSTOMER characteristics like segment
or industry or residence enables Banks to produce profit & loss statements ,
balance sheet and returns reflecting coordinated and structured view of the
operations.
The internal type of accounts falls under the Category range of 10000 to
19999. Internal accounts can not accrue interest. For example sub category
range for cash accounts is in the suggested range of 10000 to 10999, while
suspense accounts, fixed assets account and capital accounts are in the range
of 11000 to 19999.

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 Floating interest rates are defined in BASIC.RATE.TEXT and actual rates
applicable are updated in BASIC.INTEREST. In BASIC.INTEREST table,
rate change is indicated with the effective date for such a change, the
underlying Accounts derive the new rate from this table.
It is possible to set negative rate of interest in BASIC.INTEREST. It is used
only in MM, SW and DX applications.
Though negative spread can be specified over basic interest rate for all types
of accounts, it is possible to set negative interest rates only for accounts in
credit balance. To do this, the NEGATIVE.RATES Field on
GROUP.CREDIT.INT or ACCOUNT.CREDIT.INT must be set to Yes or
BLOCK.MARGIN.
If set to YES, this would enable collecting interest from accounts with credit
balances. Negative interest in an account could result due to a negative spread
being higher than the underlying floating rate. For example, a negative spread
of 2% (Minus 2%) on LIBOR which is 1.5%. In this case as the interest being
capitalised is negative, it will be debited from the customer account instead of
making the interest as zero. If set to no, then the rate would be considered as
Zero. If set to BLOCK.MARGIN, negative effect will not be allowed because
of margin. Negative margin can not make the rate more negative or a positive
rate to negative. For Example, If base rate is -7, ( Minus 7%) margin is -2 (
Minus 2%) then net effect will be -7 ( Minus 7%).If margin is +2 ( Plus 2) then

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 the effective rate become -5 ( Minus 5).If base rate is +5 ( plus 5%) and margin is -7 (
Minus 7%) then effective rate will be zero not negative.

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 FT.COMMISSION.TYPE table is used to indicate pre defined commission to
be collected. For example the charges could be for closing an account or cash
withdrawal charges. The charges could be defined currency wise at a flat charge
for all amounts. It is also possible to set the charges either on level or band
basis. It is possible to set charges and commissions for maintenance of
accounts by linking FT.COMMISSION.TYPE to GENERAL.CHARGE and
collected accordingly. It is also possible to set a Minimum or Maximum
commission to be charged or Overall Min/Max percentage of transaction as
condition for calculation of same.
AC.CHARGE.REQUEST is used as an interbank facility for requesting or
advising many types of charges from other financial institutions.
FT.COMMISSION.TYPE records can be linked to AC.CHARGE.REQUEST
for such charges. TRANSACTION.CHARGE table allows a charge, determined
by the TRANSACTION Id, to be specified for each entry that passes over an
Account during the capitalisation period. The records can also be attached in
TRANSACTION.CHARGE type of General Charge.
Facility is available to accrue or amortise generic charges defined in
FT.COMMISSION.TYPE. For an account or groups of accounts, it is possible
to collect charges on scheduled dates by suitably defining in
IC.CHARGE.PRODUCT and IC.CHARGE. If need be, this could be accrued or
amortised over scheduled period defined in IC.CHARGE.. By using local
routines, it is possible to handle complex charge calculation rules, like
collecting partial charges in case of accounts getting closed before expiry of

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 charge period through IC.CHARGE.PRODUCT.

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