Introduction to T24 - Accounts - R11.

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 In T24, Accounts can be classified as two types, either Customer type of
account or Internal type of account.
Customer accounts are accounts opened for and owned by external customers
(i.e., counter party). Internal accounts are accounts maintained by the bank for
its own purpose. ACCOUNT application caters for creation of all types of
accounts handled by Temenos T24. It is also used in maintenance and control
of accounts. It also 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 .Interest can be set for a individual account or for a group of
accounts. In addition, the application is used for calculation of charges
relating to maintenance and servicing of accounts. The charges are calculated
for customer type of accounts.
It is also used for production of account statements for both types of accounts.
Descriptive details of a customer like address are not entered in the individual
account record but maintained at customer level.
Balance in an account can move from credit to debit and back to credit. A
separate application - ACCOUNT.CLOSURE is used to close accounts.

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 ACCOUNT application is used to open , maintain and control accounts.
Balances are maintained in the ACCOUNT application. All movement of
money into the accounts takes place though other applications depending on
nature of business.
Accounts in T24 are of 2 types namely Customer accounts and internal
accounts.
Customer accounts are those of a customer. The customer may be an
individual, corporate or a Bank. Interest and charges can be applied to
Customer accounts.
Individual/ Corporate customer accounts can be opened as current account or
savings account while that of a bank customer can be a Nostro (our accounts at
other banks) or a Vostro (other banks account with us).
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 that record as and when required.. In addition to the account
number and the customer number to which the account relates, account record
contains other details like Currency, Category (Type of account), Limit,
Account Officer etc..
Internal accounts are those owned by Bank for managing its own assets and
liabilities such as suspense account, cash account etc. They are not designed

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 to calculate or apply interest and charges.

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 This illustrates linkages of various static tables that are used in ACCOUNT
application.
As CUSTOMER table is linked, all non financial information of customer are
picked from there while opening an account.
CATEGORY or product code is used to classify products such as Savings
Accounts, Current Accounts, Nostro Accounts and Vostro Accounts. There
may be more than one product category for Savings Accounts or Current
Accounts depending upon the requirements of a Bank
CURRENCY table is used to indicate currency of Accounts. Once an Account
is authorised, its Currency cannot be amended.
Value for DEPT.ACCT.OFFICER field is defaulted from underlying Customer
record. If the officer is to be different for MIS purposes, then the same can be
indicated.
It is possible to open joint accounts with more than one customer. In case of
joint accounts, it is mandatory to indicate relationship of joint account holder
with the account holder.
All the static tables are maintained through administrator menu. Only the
records created and available in the static tables are used in ACCOUNT
application in the respective fields.

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 Account number is the Id of the record and should be unique. Account
numbers can be set to be generated automatically for opening Customer
accounts. Account numbers have a maximum length of 16 characters and/or
digits including the check digit subject to local restrictions and requirements.
Customer Id or Mnemonic can be used to indicate the Customer of an account.
The currency in which the account is opened is specified by the ISO code of
the currency and is validated with the setup in the static table, CURRENCY.
Currency of an account cannot be changed after authorisation.
Product code defines the type of the account like savings, current, Nostro,
Vostro etc. For Customer type of accounts the Category code should be
between 1000 and 9999. Product codes can be changed subsequent to the
opening of the account. With the help of this functionality, a current account
could be converted into a savings account without closing the account. The
cheque book issued earlier for the current account can be used for savings
account also.
While opening an Account, Currency and product codes could be either chosen
from the drop down list or can be defaulted automatically through suitable
designed versions.

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 MNEMONIC is a memory aid and it should be unique like the account number.
It specifies an alternative method of referencing the Account. Mnemonic code
can be used wherever an Account Id is required in other T24 applications.
It is advisable to indicate Currency, Product and Customer name in the
Account name. If nothing is input here, then T24 defaults the short name of
Customer.
Short name of an account is used as online enrichment whenever the account is
referenced.
ACCOUNT.OFFICER field identifies the main Account Officer responsible
for the Account and also for generation of MIS reports and get department
wise information . If the field is not filled up by User, value is defaulted from
the underlying Customer record.
The accounts in T24 may be opened jointly with other customers.
JOINT.HOLDER.ID field records details of another customer as a joint holder
of the account. It is possible to multi value the filed and add more joint
account holders.
JOINT.RELATION.CODE field is used to indicate the relation between the
account holder and joint account holder. The main account holder can be
replaced only with a joint holder, any time later.
In the RELATION.NOTES field any relevant information including address
details of the joint account holder can be filled.

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 In T24, opening Nostro account is similar to opening Current account.
In T24, a Nostro account is opened to reflect transactions of the Nostro
account held with another bank. It is a mirror account of the Nostro account
maintained at the other bank.
We have seen in the customer record creation that if customer is a Bank then
the Sector of the Customer should conform to settings in ACCOUNT.CLASS
with Id as BANK.
Further, for opening Nostro accounts, settings in ACCOUNT.CLASS with Id
as NOSTRO should also be followed. Here, the Product Category codes and /
or the Sector of Banks are mentioned. Only if these are used, T24 will
recognize this as a Nostro and validate it accordingly.
If a Nostro account is opened conforming to this, then AGENCY record is
opened by the System automatically where this Nostro account details are
captured. If AGENCY record is already existing, then it updates Nostro
account details there – as mentioned in our external account number allotted
by the other bank.

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 The statements generated by the T24 for a Nostro account are not meant to be
sent out to the other bank. It is produced for internal purpose of reconciliation
when the account statement is received from other bank. So statements are to
be sent to the reconciliation department of the bank.
To achieve this field RECONCILE.ACCT should be set to Y. Reconciliation
with the actual statement received can be done automatically or manually
RECON.TOLERANCE field identifies the tolerance amount allowed when
matching entries in Nostro Reconciliation. For example the bank may choose
to tolerate amount up to $0.5 while reconciling the accounts in respective
account currency.
This field may either be set to 0 if tolerance is not required or an amount in the
currency of the account.
EXTERNAL.ACCT.NO field defines the actual Account Number in the Books
of the Correspondent Bank with whom a Nostro Account relationship exists.
Any details entered into this field will be accepted without further validation
and are for information purpose only. AGENCY record will be suitably
updated with this value to indicate our account number with the other Bank.

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 Retail home page has custom set of menus/enquiries required by a Retail user
to carry on the day today operations. Home Page will help the User to process
many customer related transactions, view the customer details, input
transactions and view/create opportunities for the customer. The Home Page is
designed to assist the Supervisor in authorising transactions, to view enquiries
and delivery messages.
Menus available for Customer on boarding, CRM Funds Transfer, Standing
Orders, Direct Debits and bulk Standing Orders.
Components of Remittances Home Page is available in the form of tabs, for
easy navigation.
Functionality is provided with essential CRM features for the front end.
The menu can be used for opening of accounts and other related operations. It
is one stop access menu for many T24 usages.

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 All details, except Currency can be amended at a later date.
A customer of an account can be replaced only with the joint account holder
and not by any other customer. The joint holder can also be amended
subsequently.
T24 has facility to change the product code without closing an account. For
example a savings account can be converted as current account without
closing the savings account. However, a Nostro account category can be
replaced only by another Nostro category.
The main advantage is, after observing the operations in an account, it is
possible to upgrade / downgrade it to another type of account with different
service conditions.
The cheque book issued to the Customer is still valid as it is for an account and
the account number is now not going to be changed.
Likewise, there may be instances where a dealing officer needs to be replaced
with another.

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 Service conditions are used judiciously to differentiate accounts by preferential
handling of some over the others. These conditions could be with respect to
Interest and charges, capitalisation thereof, or for issuing statements.
The service conditions may be set at either a group level or at a specific
account level.
For example the conditions for handling all Savings accounts in USD can be
set or Conditions for handling an individual Account No.356789 can also be
set up.
The capitalisation of interest is done when and at what frequency for Debit
interest and Credit interest can be setup separately.
The interest rate could be fixed or floating and revision applicable with an
effective date. The rates could be fixed on the balance based on level or band
type. Interest setup can be done currency wise. Interest rates can also be setup
separately for the debit balance or the credit balance.
The interest days basis and details of on what balance the interest is
calculated are set up - namely average or minimum.
The various charges that need to be collected are also defined .It could
comprise of interest related or ledger fees type.
Statement frequency can also be setup for a group of accounts or an individual

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 account.

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 If a Bank desires to apply different interest conditions for different groups of
Customers and / or accounts, specific rules can be setup to a group of accounts
or specific accounts.
For example,
Savings account of US residents, Current account of Software companies or
Savings account of Software professionals can be the groups for which
different interest structures are needed.
These are set up and maintained through Administrators Menu.
Interest and charges applicable to the accounts for each of the group (both
debit and credit interest) can be defined. Capitalisation and statement
frequency can also be specific to the groups.
When an account is opened, T24 automatically locates the group into which
this account falls, and the conditions set up for that group is applied to the
account opened.

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 In addition to group level conditions, interest and charges related conditions
can be set up at the specific account level. The conditions set up at the account
level override the conditions set up at the group level. The account specific
conditions can be defined separately for credit and debit interest rates,
capitalisation frequency and statement frequency for the account.

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 When the customer requests for closure of the account or if the bank decides to
close an account it can be done.
Closure of account can be done online or during the Close of business batch
run. Using Account Closure Sub menu, it is possible to give the Id of the
account record which needs to be closed. The system defaults Yes in
CLOSE.ONLINE field and the closure date is system date.
If the account is not closed online then the future date for closing can be
indicated here.
It is mandatory to mention a Settlement Account which would be used to credit
the balance available in the account closed. This account can be a customer
account or an internal account.
When ever an account is closed, the system defaults a predefined default
charge. At the time of closing, the charge can be retained or removed. The
charge can also be replaced by any other charge depending on the
requirement.
The charges are set and maintained through administrator menu.
Accrued interest is capitalised till final closure of the account in the system.

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 Liquidation accounts are used to recover interest and charges of one account
from another account.
A customer may have more than one account. He can direct the Bank to
recover charges , interest etc. of one account from other accounts.
Liquidation accounts can be different for charges and interest. There can be
different liquidation accounts for debit interest and credit interest.
Contracts also required liquidation accounts for adjustment of interest, charges
and principal redemption.

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 Enquires are grouped under four submenus namely Account Details, Account
Entries ,Interest Enquires and Locked, Inactive & Unpaid charges.
Account Search enquires provide the list of accounts based on the selection
criteria. When no selection criteria is given, then the entire list is displayed
product wise, currency wise and account officer wise.
Today’s Account Balance is similar to the previous, but has the option of
giving either the customer or account number and we can drill down to view
the accounting entries for the day, entries since last statement date and also
projected forward movements in the account.

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 Entries for Today enquiry details the accounting entries for the day. We can
drill down to look into individual transactions.
Entries for the Given dates enquiry provides the accounting entries for a given
date for an account.
Balance on Statement Date enquiry provides the gist of statement for an
account.
Average Account Balance enquiry for a given period can be generated . It
provides account wise debit and credit balances.

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 We can view the entries for a given account from the last statement date.
The details of the interest rate changes made in an account can be displayed
though the Interest Rate changes for Account enquiry.
We can enquire the details of the locked account under various dates and also
the charges that are unpaid for an account by selecting criteria account.
Further other enquires are available for viewing inactive accounts, details of
credit and debit interest posted, credit and debit interest accrued and credit and
debit interest corrected.

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 Next to Customer, Account is central to all other applications in T24.
We need to have Customer type of accounts like Savings and Current
accounts.
We also need accounts to reflect balance of our Nostro accounts held with
outside banks.
In addition, all contract applications in T24 need accounts – either Customer
type or Internal accounts for moving money – be it for giving a loan or taking
a deposit.
Even if a Customer does not have an account with the bank , we need to have
at least a Nostro account or internal accounts like Suspense account or Cash
account to deal with its assets and liabilities .

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 Now we have come to the end of the session relating to ACCOUNT.
By now you know the two type of accounts and how to open Savings,
Current and Nostro accounts and also how to close an account.
You have also seen Account related enquiries.

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