Annuity Deductions – Journal Transfers

Overview

The transfer of amounts deducted from annuity payments may be transferred to internal accounts by Journal Voucher.

In such cases, a Payment Method of JOURNAL ENTRY must be used.  To enable different accounting transactions to be generated, the Benefit Type on the Membership Payment for which the Payment Type is DEDUCTION is used to record the type of deduction.  The Benefit Type will then be used in the translation values to post to the correct account in the ledger.

It is not necessary to record the Product for which the deduction is being made and therefore the Type of Benefit can be used for deductions to indicate the type of deduction.

Accounting created by the annuity payment run

When the Business Transactions (BT’s) are created for the deductions in the Annuity Payment run and the Payment Method on the Membership Payment record with a Payment Type of DEDUCTION linked to the Membership is JOURNAL ENTRY, the system will create the Business Transactions with the following Accounting Activity:

The system will read the Qualifiers on the Accounts linked via the Accounting Rule to the Accounting Activity with which the BT is created.  If one of the Qualifiers on any of the Accounts is Income Type then the system will create the Business Transactions with the Global Type on the Membership Payment record.

The Scheme BT will be created with the following Accounting Activity for the sum of the Member BT’s with the Accounting Activity MEMPENDEDJNL and with the same Payee and the same Global Type:

Medical Aid employer contributions

When the BJU3BB Annuity batch job runs and a Membership Payment record is found with a Payment Type of MED AID ER CONT, this is treated as a deduction, but will not be deducted from the gross pension amount (sum of Payment Types ANNUITY, EX GRATIA, MED AID SUBSIDY, HOUSING SUBSIDY and LOAN SUBSIDY). 

The Payment Detail record will be included in the Third Party Payment Schedule and the Employer Subsidy report.  Refer to

Processes

Regular payments

Schedules

Third Party Payment

Supplements

Annuity Employer Medical Aid Contributions

In place of the PENSIONDED Accounting Activity, the following Accounting Activity will be created for the MED AID ER CONT Payment Types:

When the FNDPENDED Accounting Activity is created the total of all of the MAIDERCONDED Accounting Activities will be included. Currently the FNDPENDED Accounting Activity is created for the sum of all the PENSIONDED Accounting Activities.