Previous Lesson : Finacle Training Lesson 7 [Credits, Debits]
Recap
In the previous lesson we have learnt about debit and credit entries of a transaction. We have also learnt about office accounts in an office. If you have not read the previous lesson, please read it first and then come back here.
In this lesson we will learn about most commonly used office accounts.
Commonly Used office accounts.
The most commonly used accounts are as follows.
| SL NO | Account ID | Name of the A/C |
| 1 | [SOL ID]0335 | TD SUNDRY ACCOUNT |
| 2 | [SOL ID]0337 | MIS SUNDRY ACCOUNT |
| 3 | [SOL ID]0338 | SCSS SUNDRY ACCOUNT |
| 4 | [SOL ID]0339 | BO SETTLEMENT ACCOUNT |
| 5 | [SOL ID]0340 | REPAYMENT ACCOUNT OR POSTMASTER ACCOUNT |
| 6 | [SOL ID]0406 | VAULT ACCOUNT |
| 7 | [SOL ID]0017 | BANK CHEQUE CLEARANCE OF SUBSEQUENT TRANSACTION CHEQUES |
| 8 | [SOL ID]0382 | BANK CHEQUE CLEARANCE OF NEW ACCOUNT CHEQUES |
| 9 | [SOL ID] 0501,0502 etc | TELLER ACCOUNTS |
Let’s discuss each account in detail one by one.
Sundry accounts:
Sundry accounts are used when there is no other account to deposit a particular amount.
Finacle is designed assuming every customer should have one SB account before opening of any other account. But previously this rule was not there for us. So customers have directly opened MIS/TD/SCSS etc accounts without opening SB accounts. Also previously in Sanchay post we used to withdraw interest from MIS/TD/SCSS accounts and make the payment.
But in finacle what happens is, on due date of every month/quarter/year, interest from MIS/SCSS/TD account will be withdrawn automatically and deposited in customer’s SB account. For those customers who do not have SB account also, the interest will be withdrawn from the MIS/TD/SCSS accounts. This withdrawn amount should go into some account, because there should be a credit entry. This interest will go in to sundry account.
For every scheme there will be one sundry account. There will be MIS sundry account for MIS, RD sundry account for RD, PPF sundry account for PPF etc. But we will not use all sundry accounts in office. So I will not discuss about them here.
So the interest of MIS/TD/SCSS accounts which are not linked to respective SB accounts will go to corresponding sundry accounts.
I hope you are getting my point. Interest of MIS accounts which are not linked to SB account will go into MIS sundry account. Similarly SCSS quarterly interest of accounts which are not linked to SB accounts will go into SCSS sundry account. Same will happen in the case of TD accounts also. The interest will go into TD sundry account.
If the customer comes for MIS/SCSS/TD interest withdrawal, then we will withdraw the amount from Sundry accounts instead of actual MIS/TD/SCSS account.
This process of withdrawing interest from Sundry accounts is called as REVERSAL
I will tell you in detail about the reversal process while covering interest withdrawal topic.
BO Settlement Account.
By God’s grace if those RICT machines comes early, the miseries of all those offices BOs will become less. Until that time we have to wrestle with this BO settlement account for every transaction that takes place at a BO.
BO transactions take place at BO. Deposits (credits) and withdrawals (debits) which took place at BO have to be entered in Finacle in their corresponding SOs. Since these credits and debits does not relate to SO, their corresponding debits and credits should not affect office accounts of SO.
So to overcome this problem they have introduced a separate office account. This office account is called as BO Settlement account ([SOL ID] {0339}).
All BO transactions are channeled or routed through BO settlement account only.
I will explain individual BO transactions in detail in future. For now just keep in mind that all BO transactions are routed through BO settlement account only.
Repayment account or Post master Account
As per Finacle all closure amounts should be deposited in customer SB account only. But many of our customers do not have SB accounts. Then how should we close the accounts? In these cases the closure proceeds are credited in to office Repayment account. This Repayment account is generally called as Post master account.
Let’s see with an example.
Let’s assume that we are closing an RD account. When we close the account, RD account is debited. But as per Finacle, customer’s SB account should be credited. Since many of our customers do not have SB accounts, we are crediting the closure proceeds in Repayment account.
(Closure proceeds mean closure amount. It’s a new term. Start using it in our day to day activities.)
Repayment account number is [SOL ID]{0340}
Vault Account
In English, Vault means a big room used for storing money or any other valuable items. In finacle also it means the same. It’s similar to our treasury.
Daily in the morning we take cash advance from treasury and after counter closing we pay back all the cash in the counter to the treasury. This physical movement of cash should also be shown in Finacle. All the cash advance and cash repayment transactions should be entered in finacle.
In finacle advance and repayment transactions are done using VAULT account only.
I’ll explain in detail about how we take advance and how we repay the amount later. But for now please remember VAULT is equal to our treasury.
We take advance and make repayment using VAULT ID only.
Cheque Clearance accounts
I’ll explain about these cheque clearance accounts while explaining the procedure to send bank cheques from SO to HO topic. Please bear with me. It will be easy for you to understand while explaining about these accounts in that topic.
You might be thinking I’m skipping many topics by saying ‘I’ll explain later’. No I’m just postponing the explanation of those topics only because to make it easy for you. You’ll understand those topics in a better way in those situations only. Kindly bear with me till that time.
Teller Accounts
All the counter PAs and Supervisors will be allocated with a separate office accounts. All the transactions which you do in the counter will be reflected in your teller accounts. It is essential that your physical cash position is tallied with system cash position to ensure the correctness of all the transactions which you have done on a particular day.
So these are the most basic office accounts which we use to do transactions on a day to day basis.
I hope you have understood everything. If you didn’t understand anything please read the lesson again. If you still didn’t understand, then also please read the lesson again. If you still do not understand anything please ask your doubts by commenting below or in our doubts section.
Observations to be done at office
1. How many office accounts which you came across today?
2. Check the balance available in those office accounts using HACLINQ menu.
Points to remember
1. Try to remember all the office accounts by heart
2. Do not mess up with office accounts. They are closely watched by the auditors.
3. If you do mistake w.r.t any office account, immediately make error entries and try to reverse the error.
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