Oracle® Rules Palette Release 9.1.0.0.0 E15811-01

# CoA Creation: Step Three

The Chart of Accounts entry fields that must be populated will vary depending on the type of account you are creating. The fields on this screen of the wizard are not configurable since they are needed by the system to perform account processing.

The required fields that must be populated regardless of the account type are:

- effective date of the account

- entry description

- type

The rest of the fields allow you to enter additional information about your account, depending on the type of account you are creating. The values of the fields on this screen of the wizard are saved in AsChartOfAccountsEntry table and provide detail for an account. When a transaction or suspense generates an accounting record in AsAccountingDetail it is associated to this table via the ChartofAccountsEntryGUID and provides additional information regarding the account. The AsChartOfAccountsEntry is associated to the Entity via the ChartofAccountsEntityGUID in the AsChartOfAccountsEntity table, which is associated to the account via the ChartOfAccountsGUID in the AsChartOfAccounts table.

Refer to the Chart of Accounts Relationship Diagram and the Chart of Accounts Entry Database Definition for additional information.

#### Steps for CoA Entry

1. Enter the necessary entry information according to the descriptions given below.

2. Click Next to move on to Step 4 to add Criteria or Finish to complete the account set-up.

Note: You can only add Criteria and Results during account set-up. If you do not complete Step Four and Five of the wizard, then you will not be able to edit the account and add them at a later time.

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#### Entry Field Descriptions

- Account Number Format: This is not supported in the 9.1.0.0.0 release.

- Effective From Date: This date signals that the account can start to use the Account Entry detail for accounting.

Note: If the effective date entered is prior to the plan's effective date, accounting will not be performed to the AccountEntry detail record of this account.

- Effective To Date: The last day accounting can be performed using the AccountEntry detail record of this account.

- Entry Description: Meaningful description of the account and the entry record details. Used for comparisons.

- Debit/Credit: Select whether the account is a debit or credit. Populated by AsCodeDebitCredit.

Note: A debit or credit does not mean a decrease or increase. Debits and credits are recorded as positive numbers. The double entry system in a company’s general ledger requires each transaction to affect at least two entries, creating a balance within the system. If one account is debited then another must be credited, allowing for a total of all debits and credits to be equal. Each account identified in the CoA has two columns; one for debits and one for credits. The type of account and the column the entry is posted in determines if it is a decrease or an increase. The type of account determines whether a debit or a credit is a loss or gain.

8. Type: If it is a suspense account then Suspense Amount will be pre-populated in this field. If it is a transaction account then select either MathVariable, ByFund, TotalOfFunds or Disbursement.

- MathVariable: Select MathVariable when the amount value is in a MathVariable in the transaction’s configuration. You will need to enter the exact name of the Math Variable in the Accounting Amount field. Accounting is performed on this value amount.

- ByFund: Select ByFund when the amount value(s) is by a fund(s). When selected the Gain/Loss, Flip On Negative and Transaction Money Types fields are applicable for Fund type entries. The number of accounting records created for this type depends on the number of funds that have been allocated for a policy and if the Type of Fund is selected in the Chart of Account Entry.

Example:

Account Detail record shows Accounting Type is ByFund and Fund Type is Variable. A policy that has five funds, two fixed and three variable, will then have three records created for accounting purposes. If the Gain/Loss checkbox is checked, then the accounting should be performed to the Gain/Loss amount and not the Total amount.

Note: The Assignment tag should be present in the transaction if ByFund is used.

- TotalofFunds: - Select TotalOfFunds when all funds will be affected. When selected the Gain/Loss, Flip On Negative checkboxes and Exclude/Include, Transaction Money Types are enabled. Unlike ByFund, one accounting record is created for each AccountEntry Detail record provided that the required conditions are satisfied. If the Gain/Loss checkbox is checked, then the accounting should be performed to the Gain/Loss amount and not the Total amount.
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- Disbursements - Select Disbursements when the activity performs a disbursement. When selected the Original Disbursement Status, Do Reversal Accounting, Forward Accounting Status and Reversal Accounting Status are enabled. The Original Disbursement Status could be pending, recovered or recoverable. Depending on the status of the disbursement, the accounting is performed using the appropriate Chart of Account entry record.

- Scenario 1: Create three Chart of Account Entries, one for each of the Original Disbursement Statuses. The first time the Disbursement activity is processed, the accounting will be performed using the Chart of Account Entry that has the Original Disbursement Status set as Pending. If the parent activity is reversed or recycled, when the disbursement is in an active status, then the accounting will be done using the COAEntry that has the Original Disbursement Status of Recovered.

- Scenario 2: Make sure the <Disbursement> tag of the Disbursement transaction has the attribute RECOVERABLE set to Yes. Processing a Disbursement activity will perform the accounting using the Chart of Account Entry record that has the Original Disbursement Status of Recoverable.

- Gain/Loss: Check if type is either ByFund or Total Of Funds. When checked accounting is performed on the Gain/Loss amount and not on the Total amount.

- Flip On Negative: Check if type is ByFund or Total Of Funds. When checked the amount that accounting should be performed on is Negative; Credit/Debit records are flipped.

Note: You can only select either Gain/Loss or Flip on Negative. They are mutually exclusive.

- Accounting Amount: Only use when the type is either MathVariable or disbursement. Enter the name of a MathVariable that is in the associated transaction on which the accounting should be performed. The value amount must be in the MathVariable field.

- Fund Type: Fund type that accounting should be performed for. Populated by AsCodeFundType.

- Transaction Money Types: Only enabled when the type is ByFund or Total Of Funds. This list box allows you to select more than one money type. The money type specified is used as a filter for the valuation record to pick up. Accounting is performed to that account only when the money type in the transaction’s assignment element matches with the money type selected for that account. This list box is populated by AsCodeMoneyType.

- Original Disbursement Status: Only enabled when type is d isbursement. For activities there is generally an active and pending status, but for a disbursement activity that sends money out to a client, there is a chance the money may not be received by the client. This field is used to track the status of the money in case an adjustment needs to be made. The status names in this field are pulled from AsCodeDisbursementStatus.

- Pending: Select for disbursement records that are in the status of pending.

- Recovered: Select if the insurance company gets the money back. Most commonly used when a disbursement transaction is reversed or recycled.

- Recoverable: Select when the RECOVERABLE attribute is set to Yes in the transaction.

- Do Reversal Accounting: Check if you need to capture the accounting information when reversing the activity. This is usually always selected, as collecting information for reverse accounting is necessary. When checked, the reversal of the activity will perform accounting to the associated AccountEntryDetail record.

Note: If the Do Reversal Accounting check box is selected, then when a reversal is processed it will be viewable via the Accounting Detail (Reversal) section. This applies when an activity was reversed or recycled.

- Forward Accounting Status: Only use when type is disbursement. Used to track if all information was fulfilled to perform a disbursement.

- Active: Select when indicating all information was fulfilled.

- Pending: Select when indicating more information is required before processing the disbursement.

- Reversal Accounting Status: Only use when type is disbursement. Used to track whether a reversal disbursement activity is active or pending.

- Active: Select when indicating all disbursement was fulfilled.

- Pending: Select when indicating more information is required before processing the reversal.

AsChartofAccountsEntry Database Definition

- AsChartofAccountsEntry: The Debit/Credit entry for an account that must be tied to transaction or suspense.

- ChartOfAccountsEntryGUID: Unique identifier for this table.

- ChartOfAccountsEntityGUID: GUID to the AsChartofAccountsEntity table.

- EffectiveFromDate: Effective Date the entry will be effective from.

- EffectiveToDate: Effective Date the entry will be effective to.

- DebitCreditCode: Indicates 01 for debit or 02 for a credit.

- EntryDescription: Description of the debit or credit.

- AccountingTypeCode: Stores the code for the way the amount for the accounting will be obtained. 01 for Total of Funds, 02 for ByFund, 03 for MathVariable, 04 for suspense, 05 for disbursement.

- AccountingAmountField: Name of the MathVariable to use as the amount if AccountingTypeCode is set as a type MathVariable. For disbursements, this is automatically set to DisbursementAmount.

- GainLossFlag: Indicates if the debit/credit amount will be calculated based on gain/loss values.

- FlipOnNegativeFlag: Flips credits to debits and vice-versa when an amount is negative.