Finacle Training Lesson 8 [ Office Accounts]

FINACLE TRAINING LESSON 8

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But in finacle what happens is, on due date of every month/quarter/year, interest from MIS/SCSS/TD account will be withdrawn automatically and deposited in customer’s SB account. For those customers who do not have SB account also, the interest will be withdrawn from the MIS/TD/SCSS accounts. This withdrawn amount should go into some account, because there should be a credit entry.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. 

Finacle step by step - Frequently Used Transaction

RD Deposit Error "Credit Account Is Invalid Status or Total Frozen"

RD DEPOSIT ERROR

• When we try to deposit the RD account using the menu CRDP sometimes we will face the error "Credit account is invalid status or Total Frozen".
• Please find the error screen shot

ROOT CAUSE OF THE ABOVE PROBLEM

1. The root cause of the above problem is that RD account might be frozen.
2. In Finacle terminology Frozen account means discontinued account..
3. IN DOP when an RD account is not having 6 defaults i..e, if there are 6 pending deposits then the account is said to be Discontinued account.
4. For Example in our case account number 919956**** account shown in the error screen shot is Frozen account.
5. We can inquire using the menu HPLIST menu.
6. For our example I have inquired the menu HPLIST and the screen shot is as shown in the below image for your reference.

• From the above screen shot it is clear that there are 6 pending installments from 13-11-2015 to 13-04-2016 hence the system will mark the said account automatically to Frozen account.

SOLUTION FOR THE ABOVE PROBLEM:- 

• If the account is discontinued only solution is to left to the customer i..e., he/she may wish to continue the account till maturity period or close immediately.
• If the account is having the missing credits and it is frozen then follow the missing credit procedure by taking the approval from the Divisional head.

Finacle Training Lesson 7 [ Credits, Debits]

FINACLE TRAINING LESSON 7 

Recap

In the previous lesson we have learnt about the number of steps involved in completion a single transaction and the number of states for a transaction. Please read the previous lesson as it is very important in this training series.

In this lesson we will learn about some more finacle basics, like what is SOL id, what is teller id etc.

Service Outlet Id 

In finacle each post office is called as a SERVICE OUTLET. Each service outlet has a unique identification number called as Service Outlet Id. In short SERVICE OUTLET ID is called as SOL ID. I hope now you have come to know what a Sol is and what is Sol id.

SOL ID is a 8 digit number formed by joining the pin code of the post office and 2 more numbers. For example pin code number of Bangalore GPO is 560001 and its SOL id is formed by adding 00 to its pin code. So the SOL ID of Bangalore GPO is 56000100.

Similarly SOL ID of Medchal post office, whose pin code is 501401, is 50140101.

SOL Id = Pin code number+ 2 numbers like (00, 01, 02, 03 etc)

Example:

     1.     600017+00=60001700

     2.     500003+00=50000300

    3.     500007+01=50000701

I hope you are getting my point. Sol id is nothing but post office. Sol id is the new name of a CBS post office.

    1.     All accounts of a post office are linked to the Sol id

    2.     All users (counter pa, supervisor, ledger clerks, etc) of a post office are linked to sol id.

    3.     A user of a post office has all transactional privileges on accounts of the same Sol only

    4.     Only deposits, withdrawal and passbook updating transactions of accounts of other SOLs are only to be done at your SOL.

    5.     If you want to do transactions other than deposit, withdrawal or passbook updating, then you have to transfer the account to your office first by following prescribed procedures for account transfer.

    6.      Transfer of accounts can be done within minutes. So if customer is ready with transfer application and KYC documents you can initiate the transfer at your end.

Note: If a user is going from one SOL to other SOL (on deputation or on rotational transfers etc), user or postmaster has to intimate to CPC about this movement. CPC people will then change the SOL id of the user as required.

 

One Transaction two entries.

Have you ever observed pending transactions in HFTI? If you did, then you might have observed two entries for every transaction. See in the below image.

  

We have blurred the numbers for security reasons

As you can see in the above image there are 2 entries for each transaction. Transaction numbers IN4**9566/1 and IN4**9566/2 correspond to the same transaction. But there are two entries, why?

In finacle for every transaction there will one CREDIT (Cr) entry and one DEBIT (Dr) entry. For every transaction we will have a clear picture of the movement of money.

Let me explain this with an example. But please note that if you do not understand this there is no problem. But please try to understand because it’s essential for all of us to know these concepts.

Example 1: - A customer has come to your counter to make a deposit of Rs.1000/- in to his SB account.

Now you will invoke CTM menu and deposit the amount in the customer account. Note down the transaction id. Now invoke HFTI menu. Enter the transaction id in Transaction ID field and click on Go. You will observe that there are two entries for the same transaction. One entry shows that Rs.1000/- is credited into the customer SB account and the other entry shows that Rs.1000/- is getting debited from your TELLER account. (In the amount column 1000 C means credit, 1000 D debit)

Example 2:- A customer has come to your counter to make a withdrawal of Rs.1000/-from his SB account.

As done in the previous example, you will invoke CTM menu and make the withdrawal transaction. Note the transaction id. Again invoke HFTI menu and enter the transaction id in Transaction ID field and click on Go. Again you will observe that there are two entries for the same transaction. One entry shows that Rs.1000/- is debited from the customer SB account and the other entry shows that Rs.1000/- is getting credited into your TELLER account.

As we can see from the above examples, there are 2 entries for each transaction. Also your Teller account is getting affected by the transactions which you are doing. It means that your teller account gets debited when you do a cash deposit transaction and your teller account gets credited when you are doing cash withdrawal transactions. It means your teller cash position will always be in DEBIT position. Whatever the available cash which the system shows is the DEBIT cash only. You can observe DR at the end in the teller cash position.

we have blurred the numbers for security reasons

The only point to remember in this entire discussion is that there are 2 entries (a debit entry and a credit entry) for each transaction. 

OFFICE ACCOUNTS

Apart from customer accounts, we will have some office accounts in finacle. These office accounts are used for various purposes. There are more than 500 office accounts in every office. Office accounts will also have an account number. Office account numbers will 12 digit long. Of these 12 digits first 8 digits will be the SOL ID and last 4 digits will vary for different accounts.

For example, I will show you some office accounts

     1.     MIS sundry account number of Secunderabad HPO  is 500003000337 ([50000300]{0337} = [SOL ID]{0337})

     2.     MIS sundry account number of Bangalore GPO  is 560001000337 ([56000100]{0337} = [SOL ID]{0337})

    3.     MIS sundry account number of T Nagar HO  is 600017000337 ([60001700]{0337} = [SOL ID]{0337})

As you can observe that in the MIS sundry account number only the SOL id is changing. Last 4 digits remain common.

Other office accounts are also identified in the same manner.

Now let’s see why office accounts are used with some examples.

Example 1:- SAS agent wants to open a 5yr TD account for Rs.100,000/-.

Counter PA will invoke the menu CMISAOP to open the 5yr TD account. After opening the account, the agent commission will be automatically CREDITED to agent's SB account.

But we know that for every transaction there are2 entries. In this transaction customers SB is getting credited. But which account is getting debited here? Here in this case one OFFICE ACCOUNT related to agent commission will get DEBITED.

So agent SB account will be credited and OFFICE account will be debited. All the agent commission which is paid in an office can be known by making an inquiry of this agent commission office account. You can use HACLINQ menu for that.

Similarly, since we give commission by deducting TDS, all this TDS amount will be credited in another Office account.

All these credit and debit transactions from office accounts will take place automatically. So you need not worry about all these. But it is essential that everyone should know what is happening inside the system.

Example 2 : An RD customer comes to your counter to make a deposit of Rs.500/- with default  of Rs.5/-

Counter PA will invoke CRDP to make the deposit transaction. As you can see customer has given Rs.505/-, but customer account is credited only with Rs.500/-. Where this additional Rs.5/- will go? This addition Rs.5 will go to RD Default office account.  

Similarly if a customer is depositing 12 installments in RD. Customer will get some rebate. This rebate amount will come from RD Rebate office account.

As explained in the above examples, there are so many office accounts. Each account is used for different purposes.

So this about various office accounts in Finacle. In the next lesson we will learn about the most commonly used office accounts in the office.

Observations in the office 

     1.     Invoke HFTI menu and observe the credit and debit entries of all the transactions. Observe which account is getting debited and which account is getting credited for each transaction.

    2.     Note down the office account no of RD default.

    3.     Note down the office account number of agent commission and agent commission TDS.

Please make sure that you are observing the things which I tell you to do in the office. It’s essential in this learning process.

Point to remember

    1.     Every transaction will have 2 entries. (a debit entry and a credit entry)

    2.     Every office will have some office accounts. There are more than 500 office accounts in every office.

     3.     Different office accounts are used for different purposes.