Intercompany accounting in MC & MB

[Rajesh L]

Hi All,

 

Islamic banking FGB is a multicompany with multibook environment. There is one such company AE0010005 (Mnemonic: ASL - Aseel head office) and one of the book of this company AE0010651 (Mnemonic: A51 - Aseel dubai branch).

Now the issue is, there is a LD contract in A51 branch which has an interco account as drawdown account. LD's liquidation accounts is customer account which exists in the company ASL.
These type of contracts that are defined as above show a accrual entry difference(GL difference of accrual entries in both ASL & A51).

I need reasoning/clarification of the entries that will raise when an intercompany account is used.
Your inputs in this regard will be much valuable and appreciated, as this issue is happening in live.
 

Thanks & Regards,

Rajesh L

 

[Murali krishnan]

Hi Rajesh,

 

      Normally we should not use Interco company accounts in any user transactions.The Interco accounts are used by the system when you transfer funds from one company to other.For example when you transfer funds say 3000 US from Account A in Company X to Account B in Company Z the entries will be

 

company X                                         Company Z

Debit                       Credit                Debit                   Credit

Account A           Interco A/c          Interco A/c           Account B
                     of COmpany z in     of company X 
                          Company X        in company Z

    So at any time the total for the interco category will be zero.Now if you raise any entries it will not be zero.But at the same time it will not cause any GL difference  as you have a credit and debit entry.In your case you debit Loan LiveCR and move it to the interco account.

And also it has not impact on loan accrual.So if you send the RE.STAT.MISMATCH report and full view of one of the mismatch CAL keys shown in that report  and also the EB.SYSTEM.SUMMARY for the respective company it would be helpful.

In the meantime please log an issue with temenos helpdesk also if you haven't done so.

Regards,

Murali.R

 

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Warm Regards,
Murali Kris