When the remittance advice has been authorised, an e-mail is sent to designated users to inform them that there are contributions to be processed (done by administrator's staff only).
The status for the current cycle month is changed to "closed".
The designated user will collect the member data and the monies by initiating a batch job run.
When the batch run has been successfully completed, the designated user will authorise the movement of the data and monies.
Apportioning contributions
Contributions are apportioned according to the members' selected investment allocation or a scheme level allocation. Reports are produced of the investment apportionments.
Each item of income is linked to a predefined accounting activity at a member and scheme level and accounting transactions are created at a member and scheme level according to the accounting rules defined for the scheme.
Electronic fund transfers
If the EFT (Electronic Fund Transfer) option is selected, EFT’s are generated to transfer the income from the employer's bank account (or a clearing account into which the income has been deposited) to the scheme's bank account, the asset managers and insurers. If the NO EFT option is selected, the appropriate accounting activities are generated to debit a receivable account.
Money movement
The movement of money is determined by the rules that are set up for each scheme, and can be arranged to suit each scheme, e.g. if investment is done on a net basis (contributions less an estimate for claims) no EFT’s are generated to transfer the income received automatically to the asset managers. Where applicable, investment advices for the asset managers are produced automatically.
Workflow
The Income menu will not be enabled for selection if either the Global Parameter or the Scheme Parameter for WORKFLOWENABLED has been set and the Parameter is equal to YES. This is because the Income Process has been switched off on Core and can only be accessed through My Work.
For more information, refer to the Switch off Core for Benefit Payment and Contribution processes section under
Product Launch Requirements
Additional Menu Options
Parameters
The following is a summary of the steps to be followed after the remittance advice has been authorized:
- Income batch cycle – creates accounting transactions
- Receipt contributions (deposit allocation)
- Expected contributions (e.g. due to rate changes)
- Invest net contributions (contributions less costs), i.e. pay over to investment managers
- Pay administration fees to administrator
- Pay premiums to underwriters
- Apportion investment fees to members
- Expense billing (e.g. for risk premiums, complicated benefits, etc.)
- Pay investment fees to asset managers, investment consultants
- Receipt disinvestments for investment fees
- Reconcile assets
- Corrections, where necessary
- Late paid contributions interest
For detail on post-deployment activities, refer to
Auxiliary Activities
Post-deployment Checklist
Post-deployment Checklist
For examples of accounting transactions (T-accounts), refer to
Supplements
Accounting Transaction Examples