The following programs should be part of a nightly schedule.
B_JU3AH_TRANSMISSION_INCOME
B_JU3AB_UNITISATION
B_JU3AK_REUNITISATION
B_JU3AA_DISTRIBUTION
B_JU3AJ_SCHEME_DISTRIBUTION_OF_RESERVES
B_JU3AC_SWITCHING
B_JU3BN_LIFE CYCLE SWITCHES
B_JU3AE_BONUS
B_JU2AA_BTPOST incorporating B_JU2AG_ACCBAL and B_JU2AL_UMBPOST
B_JU3BF_BACKD
B_JU3BS_LATEIN
B_JU1CV_DIARY
B_JU3AZ_UNDWRT
B_JU3AX_BENSTA
B_JU2AT_AHV Bank Account Holder Validation
B_JU2AQ LDC File Extract
B_JU2AU LDC EFT Interface Batch
B_JU2AV Bank Statement Upload
B_JU3EL_BONUS (MONTHLY & ANNUAL)
B_JU3UB_INCR
The following are only required if the client uses this functionality.
B_JU2AB_EFT
B_JU3BB_ANNUIT
B_JU3EK_ASSET_MANAGER_EXTRACT
A description of each of these programs follows:
This process reads the Income Transaction Detail tables populated by the Income batch-processing component when an Income batch has been authorised. Based on the accounting activities attached to the Income amounts BT’s are created to record the Income at a Member, Investment Portfolio and Scheme level. Where applicable, details are written to an Electronic Fund Transfer (EFT) file for linking to the appropriate Banking System.
During this process an Investment advice is produced for the total of all of the Members for each Investment Portfolio to inform the Asset Manager of the amount to be transferred to the assets manager’s account per Investment Portfolio.
The Unitisation process calculates the number of units ‘purchased’ in a Portfolio for each Member’s Investment of contributions, switch Investments or the distribution of Dividends. A number of units are calculated for all business transactions for which a unit value has not been recorded.
The process retrieves the Investment business transactions (BT’s) in the Members’ pre-unitisation Investment Accounts for which there is no corresponding BT to record the number of units. If the unit price applicable for the Investment Portfolio and the transaction date of the BT has been captured and authorised, the amount is divided by the price and a BT created to record the amount and the number of units in the Member’s Unitised Investment Account. If the unit price is not available the BT is ignored and is processed again the following day or when next unitisation is run.
The actual transaction date is used when determining which price to use to calculate the number of units purchased.
This process provides for the re-calculation of the units calculated for a specific unit price effective date where the unit price has been corrected.
Where a unit price has been corrected a BT is created to reverse the original BT created to record the number of units purchased using the original unit price. The correct number of units is calculated using the new unit price for that date and a BT created to record the correct number of units.
If it results in a negative balance in the INVMEMUNIT account, the balance is transferred to TRF T/FROM FND, where the difference is written off.
The transactions created by the benefit-realisation, sell-switching and distribution process are not re-unitised.
Refer to Unit price corrections and Re-unitisation under
Product launch Requirements
Capture Bonus Rates
The distribution process apportions units and amounts amongst the Members invested in an Investment Portfolio according to the Distribution Detail captured for an Effective Date and for an Investment Portfolio. The rules set-up in the Distribution Structure at an Infrastructure level determines the way in which the apportionment is performed.
The distribution of reserves process apportions units and amounts amongst all of the Members of a scheme and all of the Investment Portfolios in which they are invested, according to the Distribution Detail captured for an Effective Date. The rules set-up in the Distribution Structure at an Infrastructure level determines the way in which the apportionment is performed.
The Switching Process caters for the batch processing of Investment Switches captured by Members via the Internet, bulk switch or by Admin staff. A switch is the transfer of a percentage of a Member’s Investment in one Investment Portfolio into one or more other Portfolios.
The batch processing includes:
- The determination of the disinvestment (sell) and Investment (buy) transaction dates.
- Production of a notice for Asset Managers for Portfolios
- The calculation of the number of units to be transferred out.
- The calculation of the proceeds of the disinvestments.
- The calculation of the switching fee to be levied on the sell proceeds.
- The amounts to be invested in the Portfolios selected for transferring into.
- The production of the advices for the Asset Managers of the units/amounts to be disinvested and amounts to be invested.
- The generation of the accounting entries to record the transactions at a Member and Fund level.
- The calculation of the profit/loss on the units transferred out and the generation of the accounting entries for the recording thereof.
- The creation of the EFT’s to transfer the monies between the various Bank Accounts involved.
Note:
When the investment portfolio being transferred out of is non-unitised (i.e. the investment portfolios for which the earning allocation basis on the associated investment medium is BONUS, and the switch out percentage is 100), interest will be calculated up to the transaction date of the sell leg of the switch.
If the switch out percentage is less than 100, then no interest will be calculated (interest will be calculated at the final rate during the annual bonus allocation process or the monthly bonus process and added to the remaining balance).
If the transaction date on the switching detail record is not null, the unit price with an effective date equal to the transaction date or the first working day prior to the transaction date or after the transaction date depending on the pricing method, will be retrieved.
Status Codes are set as follows which record the stage at which the switch is in the process:
1 = Switch Captured, no processing has taken place
2 = Asset Manager has been notified of the sell
3 = The Business Transactions (BT’s) have been created to record the sale of the Member’s units
4 = Asset Manager has been notified of the purchase and BT’s created to record the amount invested
0 = Switch has been cancelled via the on-line/batch process
E = All errors which have occurred.
When the Life Cycle Switches batch job runs, the system will find the investment portfolios linked to the Membership Groups with a Membership Group Type of SCHEMELIFECYCLE in addition to the investment portfolios linked to the Investment Membership Groups for which the Life Cycle indicator is YES.
Member Choice
When creating the Life Cycle investment switches and when updating the Life Cycle investment allocations, the system will exclude the Income Types for which the value for Member Choice is SCHEMELIFECYCLE for the investment portfolios linked to the Investment Membership Groups for which the Life Cycle indicator is YES.
Non-Member Choice
When creating the Life Cycle investment switches and when updating the Life Cycle investment allocations, the system will exclude the Income Types for which the value for Member Choice is not SCHEMELIFECYCLE for the investment portfolios linked to the Investment Membership Groups for which the Membership Group Type is SCHEMELIFECYCLE
If the Membership Group Type is SCHEMELIFECYCLE, and the Life Cycle Basis is YEARS TO NRD, the system will determine the Member’s Normal Retirement Age and then based on the Member’s date of birth, determine the number of years that the Member is past Normal Retirement Age and check whether the Member is allocated to the correct Membership Group. If the Member is allocated to an Investment Membership Group for which the Life Cycle Basis is YEARS TO NRD, the system will re-allocate the Member to the correct Membership Group for which the Life Cycle Basis is YRS AFTER NRD.
When the batch job runs for Late Payment Interest - Section 13A, the system will find any new contributions or interest payments on the Member Control Balance table received since the previous run.
If contributions have been received, the system will check if they were received after the cut-off period and if so, calculate interest.
Interest on late contributions
The system will read the value for the LATE CUT-OFF DD batch parameter and determine the first working day equal to or greater than the Due Date of the contributions received plus the LATE CUT-OFF DD value. The system will process as follows:
For each Pay Centre, check if the contributions were received after the cut-off date and if so calculate interest.
Determine if the Transaction Date is greater than Due Date plus the value for CUT-OFF DAY.
If so:
Determine the number of days from the Due Date to the Transaction Date. Exclude the Transaction date, e.g. if the Due Date is 31/03/2012 and the Transaction Date is 13/04/2012 calculate interest for 12 days.
Read the value for Amount on the latest Fund Percentage for which the Percentage Type is SECTION 13A INT and for which the Percentage Sub Type is INTEREST 1 and the Effective Date less than or equal to current date.
If the contribution amount is less than or equal to the Amount read the Percentage on the Fund Percentage.
Retrieve the Business Transactions in the Members’ CONTRIBUTION accounts with an Income Type for which the Global Group Type is CONTRIBUTION for the Members associated to the Paycentre and with a Due Date equal to the Due Date of the total contribution.
Calculate interest for each Membership as follows:
[Contribution Amount (1+ INTEREST 1 Percentage / 100)^( Number of Days / 365*)] - Contribution Amount
*(or 366 if 29 February is included in the number of days)
If the contribution amount is greater than the Amount on the INTEREST 1 Fund Percentage, read the Percentage on latest Fund Percentage for which the Percentage Type is SECTION 13A INT and for which the Percentage Sub Type is INTEREST 2 and the Effective Date less than or equal to current date. Calculate interest as follows:
[Contribution Amount (1 + INTEREST 2 Percentage / 100)^(Number of Days / 365*)] – Contribution Amount
Store the details on the Member Control Balance record for each Membership with a Run Type of INTEREST.
Sum the interest amounts for each Membership per Pay Centre and store the value on the Pre-Auth Bt table.
Interest on late paid interest
The system will check if interest calculated previously was received after the cut-off date and if so calculate interest on the interest amount as follows:
For each Pay Centre find the Due Date of the latest LATEINTINT accounting activity in the scheme’s LATECONTBINT account for that Pay Centre.
Read the Batch Parameter LATE CUT-OFF MM.
Retrieve the following accounting activities in the scheme’s LATECONTBINT account with a Due Date greater than the Due Date of the latest LATEINTINT accounting activity and less than the batch run date less the value for LATE CUT-OFF MM:
- INTRESTALLOC
- DEPOSITINT
- LATECONTBINT
Compare the accounting activities with the same Due Date and Pay Centre. If an INTRESTALLOC and a LATECONTBINT accounting activity is found with the same Due Date or a DEPOSITINT and a LATECONTBINT accounting activity with the same Due Date:
Determine if the interest payment was received after the cut-off time. If the Transaction Date on the INTRESTALLOC or DEPOSITINT accounting activity is greater than the Due Date plus the value for LATE CUT-OFF MM, or the next working day if the result is a non-working day:
Determine the number of days from the Effective Date of the LATECONTBINT accounting activity to the Transaction Date of the INTRESTALLOC or DEPOSITINT accounting activity.
Read the Percentage on the latest Fund Percentage with an Effective Date less than or equal to the run date and with a value for UDPV Percentage Type on SECTION 13A INT for which the Percentage Sub Type is INTEREST 1or INTEREST 2 depending on the accounting activity amount.
If the accounting activity amount is less than or equal to the Amount on the INTEREST 1 Fund Percentage use the INTEREST 1 Percentage and if the accounting activity amount is greater than or the Amount on the INTEREST 1 Fund Percentage use the INTEREST 2 Percentage.
Find the records on the Member Control Balance for each Membership with a Run Type of INTEREST and with a Due Date equal to the Due Date of the LATECONTBINT accounting activity.
Calculate interest on the amount of each of the Members’ records found on the Member Control Balance using the interest rate and the number of days determined above.
Store the details on the Member Control Balance record for each Membership with a Run Type of INT ON INT.
Sum the interest amounts for each Membership per Pay Centre and store the value on the Pre-Auth Bt table with a LATEINTINT accounting activity.
For more information, refer to:
Supplements
Processes
Running Section 13A Interest
The Late Contribution Interest section in:
Processes
Contributions
Income
This process caters for the monthly allocation of Investment earnings to the Members of a Scheme in the form of interest or bonuses for Investment Portfolios that are not unitised. Interest is calculated on the Members’ Investment Accounts as follows:
- On the opening balance, as at the first of the current month, for the number of days from the first to the last day of the month inclusive using the actual interest rate.
- On each transaction recorded during the month for the number of days from the due date of the transaction or the actual transaction date (depending on the Scheme Rules) to the last day of the month inclusive using the actual interest rate.
Business transactions (BT’s) are created to record the interest in the Member’s Investment Account.
This process caters for the annual allocation of Investment earnings to the Members of a Scheme in the form of interest or bonuses for Investment Portfolios that are not unitised. The process is triggered by the capture of an Annual Bonus Allocation request for an Investment Portfolio or Investment Medium as at a specified date.
Interest is calculated on the Members’ Investment Accounts as follows:
- On the opening balance as at the date of the last annual interest calculation (or date of commencement of the Scheme if it is the first annual interest allocation) for the number of days from that date to the specified date using the actual interest rate.
- On each transaction recorded during the applicable period for the number of days from the due date of the transaction or the actual transaction date (depending on the Scheme Rules) to the last day of the period inclusive using the actual interest rate.
The following formula is used in the interest calculations:
[A (1 + R/100)d/y ] – A
Where: A = Amount of balance or transaction
R = Interest Rate
d = Number of days
y = Number of days in the year
Business transactions (BT’s) are created to record the interest in the Member’s Investment Account. The interest rate used in the calculations is recorded on the Annual Bonus Allocation request.
Note:
Annual Bonus
If the pricing frequency on the investment medium to which the sell investment portfolio is associated is A (Annual), then interest from the date of the last final bonus allocation will be calculated up to the transaction date of the switch sell, using the percentage on the latest (interim) bonus rate.
The interest calculation is the same as for realisation.
If the balance retrieved from the member's INVESTMEMB account for the investment portfolio as at the effective date of the bonus calculation is zero, then no interest will be calculated for the member.
Monthly Bonus
If the pricing frequency on the investment medium to which the sell investment portfolio is associated is M (Monthly), then interest from the date of the last final bonus allocation will be calculated up to the transaction date of the switch sell, using the percentage on the latest (final) bonus rate.
If the balance retrieved from the member's INVESTMEMB account for the investment portfolio as at the effective date of the bonus calculation is zero, then no interest will be calculated for the member.
Refer to Investments under
Product Launch Requirements
Additional Menu Options
The Business Transaction posting program incorporates 2 more programs namely, B_JU2AG_ACCBAL and B_JU2AL_UMBPOST. This program resolves the underlying structures to create data warehousing tables for reporting of the business transactions.
The accounting balance posting programs summarizes the balances for the accounting periods for the creation of the trial balances. This creates all the opening balances as required and clears the income and expense accounts at the end of the financial year.
The umbrella-posting program sweeps the transactions from the sub schemes to the main schemes accounts.
This process is responsible to calculate the contributions when a backdated salary or membership group allocation is captured.
This batch job is run to calculate the effect of the backdated change on contributions due, and the costs included in the contributions for each of the months included in the backdating period.
The expected amount for each month is compared with the amount recorded as received for that month and the difference is calculated.
After this recalculation process has been completed, the expected member income report becomes available under Contributions and Reporting.
This process looks for reminders that have been captured either on the scheme or on the annuitant’s records and sends an email to a specified recipient for action.
This process determines if any members have exceeded the underwriting limit as set-up on the benefit product for the benefit membership group that they are in. These exceptions are available to be seen in an enquiry on the scheme list.
The benefit statement program is scheduled by scheme and date on the online screens. This program looks for work each night and creates the extracts per member per event for the date and scheme requested.
When the benefit statement batch job is run, the system will read the Document Template with a PDF Process Type of BEN STATEMENT that is linked to the Member’s applicable Membership Group, or if not found, linked to the Scheme. The system will read each of the Field Tags and retrieve or calculate the relevant data and populate the template.
The system will also read the Inclusion Condition for each Template Element.
- If the value is ALWAYS, the Template Element (paragraph/image/table include) will be included.
- If the value is VALUE, the Template Element will be included if a value is retrieved or calculated for any of the Field Tags contained in the Template Element.
- If the value is CRITERIA, the system will read the criteria selected and include the Template Element if the Member’s data matches the criteria as follows:
|
MEMBER CATEGORY |
Include if the Member is linked to the Membership Group selected |
|
INCOME TYPES |
Include if the Member has investment balances for the Income Types selected. |
|
DATE OF JOINING |
Include if the Member’s CAR Start Date (date of joining Scheme) falls within the dates selected |
|
MEMBERSHIP STATUS |
Include if the Member’s Membership Status is equal to the Status selected |
|
SERVICE TYPES |
Include if the Member has a Service record equal to the Service Type selected |
|
PORTFOLIO |
Include if the Member has investment balances for the Portfolio selected |
This program caters for 2 bank formats, namely Nedinform and CashFocus. A file is created that can be loaded to either of these systems.
This program creates the pensioners payroll files for crediting the salaries to the bank. It creates the various schedules, like payslips, third party advices, certificates of existence etc.
This program extracts disinvestment and investment transactions for all asset managers on a timed daily basis, in an XML format.
Extracts, validates and updates bank accounts when processing EFT payments.
Extract of EFT’s for LDC bank interface.
Rejection of EFT’s for LDC bank interface.
Reads files received from the bank in order to reconcile bank accounts.
Generates increase notification letters to Policyholders for increases to the sum assured and premium increases for Endowment Products.
For examples of accounting transactions (T-accounts), refer to
Supplements
Accounting Transaction Examples 1
Accounting Transaction Examples 2