Support Center

Linking Products to Accounting

Last Updated: May 10, 2016 09:41AM CEST

 

Financial Actions

Loans - Product Rules under Cash basis Accounting

Loans - Product Rules under Accruals Accounting

Deposits - Product Rules

 

 

───────────────────────────────────────────────────────────────────────────

 

Financial Actions

These are the accounts you can add to your Chart of Accounts.

After linking them to GL Accounts, Mambu will automatically post the journal entries on the correspondent GL Account whenever a transaction occurs:
 

* For Loans:

- Portfolio Control – the current asset account that is controlling the product portfolio.

- Transaction Source – the current asset account that is managing your money source.

- Write-off Expense – the expense account that you use when cancelling or writing off an account.

- Interest / Fee / Penalty Income – the income accounts you recognize when cash is received

- Interest / Fee / Penalty Receivable – are the current asset accounts used for managing the interest, fees or penalties you expect to earn in the Accruals Methodology


* For Savings:

- Transaction Source – the current asset account that is managing your money source.

- Savings Control – the current liability account that is controlling the product portfolio.

- Interest Expense – the expense account that you use when have to pay interest for the deposits.

- Interest / Fee Income – the income accounts you recognize when cash is received

- Overdraft Portfolio Control – the current asset account that is controlling the product portfolio.

- Overdraft Write-Off Expense – the expense account that you use when cancelling or writing off an account.

- Overdraft Interest Income – the income account you recognize when cash is received

 

────────────────────────────────────────────────────────────────────────────── Back to top

 

Loans - Product Rules under Cash basis Accounting

The following table shows Mambu's behavior after the accounting rules per product have been set:

 

In brackets you can see some examples of accounts that could be used to link the loan products to accounting.


After enabling the Cash basis Accounting method, Mambu will display dropdown menus where you can choose the accounts depending on the type (asset, expense or income) in each one of them
 

 

After saving the changes the transactions will start being logged automatically in Accounting following those rules.

 

────────────────────────────────────────────────────────────────────────────── Back to top

 

Loans - Product Rules under Accruals Accounting

In the following table you can see Mambu's internal behaviour when you define the accounting rules in a Loan Product under Accruals Accounting:

 

In brackets there are some examples of accounts that could be used to link the loan products to accounting.

 

Like in the previous method, after enabling the Accruals Accounting method, Mambu will display dropdown menus where you can choose the accounts depending on the type (asset, expense or income) in each one of them.

 

For loan product types with accrual accounting you can select for the Interest Accrued Method to be Daily. Every day, when the End of Day Process runs, Mambu will log journal entries in accounting for the total amount of interest that is accrued (and not yet applied) on your active accounts. On the next process execution, Mambu will reverse the previous day entries and log new ones with the updated accrued amounts.


Click on save and from this point onwards and, under these rules, Mambu will log all of your transactions.

 

────────────────────────────────────────────────────────────────────────────── Back to top

 

Deposits - Product Rules

For deposits Mambu will manage the accounting following these rules:

 

In brackets you can see some examples of accounts that could be used to link the deposit products to accounting.

 

And just like for Loans, after enabling the accounting in the product, select the account depending on the type (asset, liability, expense or income) in the dropdown menus > save it and from that moment on, the transactions will start getting automatically logged in Accounting.

 

For deposit product types with accrual accounting the Interest Accrued Method is Daily. The process is the same as for loan product types. If you allow overdrafts and want to use this option, define the Interest payable and Interest Receivable and journal entries will be posted. When overdraft interest or fees are applied on the account, accounting entries will be posted. Mambu will credit the Overdraft Interest or Fees Income rule and debit the Overdraft Portfolio Control.

────────────────────────────────────────────────────────────────────────────── Back to top

support@mambu.com
http://assets2.desk.com/
false
desk
Loading
seconds ago
a minute ago
minutes ago
an hour ago
hours ago
a day ago
days ago
about
false
Invalid characters found
/customer/en/portal/articles/autocomplete