T24 Induction Business - Account R13 v1.0 Oct 13 PDF

T24 Induction Business - Account
Welcome to the T24 Accounts Course
The first topic on our agenda is the learning objectives
These are the learning objectives of this course. You will learn the Core Tables and the
Business Features of an Account, the Importance of Account Application to other T24
Applications , how to Open different types of Account and Preferential Conditions.
Next, we will have an Overview of accounts
In T24, Accounts are classified into Customer Accounts and Internal Accounts.
Customer accounts are opened for customers. In this case, a counter party is mandatory.
Interest and charges can be accrued. Examples of accounts are current accounts, savings
accounts and vostro accounts.
Internal Accounts are used by the bank for its own purposes. A counter party and the
accrual of interest and charges are not allowed. Examples of internal accounts are Cash
Accounts, Building Accounts and Capital Accounts, all belonging to the bank.
Interest rates can be Fixed or Floating. It can be a single rate for any amount or can be tiered
into different rates for different tier amounts. The tiered rates can be either Level or Band.
Account Statements can be generated for both types of accounts.
Accounts can be closed using the ACCOUNT.CLOSURE Application.
The ACCOUNT application is used to open and maintain accounts. Deposits and Withdrawals
to accounts are performed through applications called Funds Transfer, Teller Transaction or
Data Capture.
A customer record is a mandatory link for any customer account. Interest and charges are
allowed for Customer Accounts. The Counterparty can be an individual, a corporation or a
bank.
Internal accounts, such as a suspense account and a cash account, are owned by the Bank
for managing its own assets and liabilities. They are not designed to calculate or apply
interest and charges. A counterparty for an internal account is not allowed.
The Static Tables related to Accounts
This slide illustrates the links to various static tables that are used in the ACCOUNT
application.
All of the Customers non-financial information is retrieved from the Customer table during
the opening of an account.
In Model Bank, a range of category codes are allotted for different products in T24.
Category codes ranging 1000 to 9999 have been allotted for Customer-type account
products.
Within this range, sub ranges have been allotted for different types of accounts such as
Current, Savings and Nostro Accounts.
The range of 10000 to 19999 have been allotted for internal types of accounts.
CURRENCY table in T24 is used to define Currencies and their features. The Account
application uses this Table to indicate the Currency of the Account. Once an Account is
authorised, its Currency cannot be amended.
The DEPT.ACCT.OFFICER Table is used to define the Department Officers in the Bank. Every
Account is linked to a DEPT.ACCT.OFFICER. Unless input otherwise, the value for the
DEPT.ACCT.OFFICER field will default from the underlying Customer record.
A joint customer can be added to a customer account. When we specify a joint customer,
the relation of the customer should be specified in the RELATION field. The relation specified
here should be a value already defined in the RELATION Table.
Only records created and available in the static tables are used in ACCOUNT application in
the respective fields.
The Mandatory details
Account number is the ID of the record and should be unique. Account numbers can be set
to be generated automatically upon opening Customer accounts. Account numbers have a
maximum length of 16 characters including the check digit.
The Customer ID or Mnemonic can be used to indicate the Customer of an account.
The currency in which the account is opened is specified. It should be a valid Record in
Currency Table. Id of the Currency Table is the ISO code of the respective currency. Currency
of an account cannot be changed after authorisation.
Product code defines account type. Examples of accounts being savings and current
accounts. 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.
While opening an Account, Currency and product codes could be either chosen from the
drop down list or can be defaulted automatically through suitable versions.
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The Additional details
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MNEMONIC is a memory aid and it should be as unique as 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 will default the short name of the 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. This
field is also used for the generation of MIS reports and the retrieval of department
information . If this field is not input by the User, the value will default 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 field and to add more joint account holders.
JOINT.RELATION.CODE field is used to indicate the relation between the account holder and
the joint account holder. The main account holder can be replaced only with a joint holder.
In the RELATION.NOTES field any relevant information including address details of the joint
account holder can be input.
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Lets work through several workshops on creating Accounts.
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The solution is to select from the menu Retail Operations and then Account, after that, click
on the sub-menu Open Savings Account, then fill in the appropriate fields.
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Now we will open a Savings Account in a foreign currency
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Once again, select from under the menu Retail Operations, then Account, and after that,
click on the sub-menu Open Savings Account, then fill in the appropriate fields.
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And now we will create a current account
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The solution is to select the menu Retail Operations, then Account, then the sub-menu Open
Current Account. After that, fill in the required information.
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The Nostro Accounts
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In T24, opening a Nostro account is similar to opening a Current account.

In T24, a Nostro account is opened to reflect transactions of another bank. It is a mirror
account of the Nostro account maintained with the other bank.
We have seen in the creation of a customer record, that if a customer is a Bank, then the
Sector of the Customer should conform to settings in ACCOUNT.CLASS with the ID being
BANK.
Further, for opening Nostro accounts, settings in ACCOUNT.CLASS with the ID being NOSTRO
should be followed. Here, the Product Category codes and the Sector of Banks are
mentioned. Only if these are used, T24 will recognize this as a Nostro account and validate it
accordingly.
If a Nostro account is opened conforming to this, then an AGENCY record is opened by the
System automatically where the Nostro account details are captured. If an AGENCY record
already exists, then it will update the details of the Nostro account.
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Statements generated by T24 for a Nostro account are not meant to be sent out to other
banks. It is produced for internal reconciliation along with the account statement that is
received from the other bank. These statements are to be sent to the reconciliation
department of the bank.
To achieve this, the 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 for discrepancies. For
example, the bank may choose to accept a reconciliation difference of up to 50 cents
between the amounts reported.
This field may be set to 0 if no discrepancy is to be tolerated.
The field EXTERNAL.ACCT.NO defines the actual Account Number in the Books of the
Correspondent Bank with whom a Nostro Account relationship exists. Details entered in this
field will be accepted without further validation and are for information purpose only. The
AGENCY record will be updated with this value to indicate our account number with the
other Bank.
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Lets do a workshop on opening a Nostro Account
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The solution is to select from under the menu Retail Operations, then Account, then the submenu Open Nostro Account, then to fill in the required information.
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The Main Parameter Tables
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Preferential conditions for the application of interest and charges can be set for different
products to different Customers. The CONDITION.PRIORITY table with the Id as ACCOUNT is
used to specify data elements from CUSTOMER and ACCOUNT applications that are used to
determine grouping conditions for accounts
ACCT.GEN.CONDITION table is used to define the rules of the data elements for the
grouping of Accounts so that the same interest and charges conditions are applied to them.
Account related tables are ACCOUNT. PARAMETER, ALT.ACCT.PARAMETER and
ACCOUNT.CLASS .
An ACCOUNT. PARAMETER record contains information related to Cash flow days, Value
Date Accounting, Alternate Account Identifier, Customer Number within an Account
Number, and so on.
ALT.ACCT.PARAMETER forms part of the structure by which the alternative account can be
maintained.
ACCOUNT.CLASS is used to link categories and or sectors for the automatic operation of
suspense accounts by various modules
Account.Class is also used to validate specific classes of accounts
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The Account Balances
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EB.CONTRACT.BALANCES is a system maintained file wherein a record is automatically

created for each account in order to maintain different balances in the account. The id of
this record created will be the id of the respective account.
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Here is another method of checking the balance of an account.
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We let you discover the steps of the calculation of the Account Balances.
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Here is a example with

A debit of 1000 $
And then a credit of 2000 $
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Amending Accounts
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Currency of an account cannot be amended after authorisation.

A customer who owns an account can be replaced only with the joint account holder and not
with any other customer. The joint holder can be amended.
T24 has the ability to change the product code without closing the account. For example, a
savings account can be converted to a current account without closing the original savings
account. However, a Nostro account category can only be replaced by another Nostro
category.
Other changes to an account are as follows:
The accounts service conditions can be modified
Existing cheque books can remain valid since the account numbers remain unchanged
And the account officer may be changed
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Lets look at a workshops on amending the Local Currency of a savings Account.
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The solution is to select from the menu Retail Operations, then Account, then the sub-menu
Amend Account. After that, fill in the required information.
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The Account Service Conditions
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Service conditions are used to differentiate accounts for preferential treatment. These
conditions could be with respect to Interest and charges, capitalisation, issuing statements
and so on.
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 a specific Account can be set as well.
Capitalisation frequencies for debit interest and credit interest can be set separately. Interest
type can be fixed or floating with the option of a rate revision frequency. Tiered interest
rates can be set for balance amounts with the option of Band or Level. Interest setup can be
set according to currency. Interest rates can also be setup separately for debit balances and
for credit balances.
The interest days basis and source balance (like namely average or minimum balance)on
which interest is to be calculated are set up.
It is possible to define interest based charges and ledger operation based fees. Statement
frequency can also be setup for a group of accounts or an individual 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 for each.
For example,
Savings accounts of US residents, Current accounts of Software companies or Savings
accounts of Software professionals can be the groups for which different interest structures
are needed.
These are set up and maintained through the Administration Menu.
Charges and debit and credit interest that are applicable to the accounts for each of the
groups can be defined.
Capitalisation and statement frequency can also be specific to the groups.
When an account is opened, T24 automatically fits the group into which this account falls,
and the conditions set up for that group get applied to the account opened.
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The conditions that are set up for interest and charges on a specific account override the
conditions set up at the group level.
The account specific conditions can be defined separately for credit and for debit interest
rates, capitalisation frequency and for statement frequency.
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Here is a workshop on amending the Statement Frequency.
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The solution is to select the sub-menu Account Maintenance, then select the Account to
Amend, and request the Maintenance of the Statement Frequency.
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Lets work on several workshops on creating a Customer.
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This time after selecting the Account to Amend, choose the Maintenance of the
Capitalisation Frequency.
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This workshop is about editing the Credit Interest Conditions
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The solution is to select the Credit Interest Value from the Account Maintenance,
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This workshop is about amending the Interest Rates Conditions.
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In this workshop you would select the Debit Interest from within the Account Maintenance,.
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In this workshop, you will see the Account level interest rates for the next month
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To find this solution, go to the Interest Enquiries menu and select the sub-menu Interest
Rate Changes for an Account, then, input the account and the period you want to enquire
on. The results will then be displayed.
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The Account Closure
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Closing an account can be done at the request of the customer or can be based on a decision
by the Bank.
The closure of an account can be done online through the Account Closure Submenu or
during the Close of business batch run.
When closing the account online, the system will default Yes in the CLOSE.ONLINE field and
the closure date will be the system date. If the account is not closed online then the future
closing date can be indicated here.
It is mandatory to input a Settlement Account which would be used to credit the balance of
the closed account. The settlement account can be a customer account or an internal
account.
When an account is closed, any accrued interest is capitalised and the system defaults a
predefined charge, which can be modified or removed.
The charges are set and maintained through the administration menu.
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In addition to ACCOUNT.CLOSURE the AC.PRE.CLOSURE.DETAILS application can be used to

simulate a closure on the account, no actual accounting entries are raised from this
application, it is for information purposes only. The application will calculate settlement
amounts, produce a list of errors or override messages that will prevent an account from
being closed by ACCOUNT.CLOSURE.
This application can only be used with the V and S function.
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This workshop will cover the closing of an account with a Credit Balance
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You can now check the Accounting Entries for the Closure
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You can go to the sub-menu Entries for Given Dates under the Account Entries menu, select
the account and the date, in order to view the closure transactions.
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The Account Liquidation
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Liquidation accounts are used to recover interest and charges of one account from another.
A customer may have more than one account. He can direct the Bank to recover charges,
interest and such 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 others for credit interest.
Contracts require liquidation accounts for adjustment of interest, charges and principal.
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Finally the Enquiries on Accounts
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Enquires are grouped under four submenus namely Account Details, Account Entries,
Interest Enquiries and Locked, Inactive & Unpaid charges.
Account Search enquiries provide a list of accounts based on the selection criteria. When no
selection criteria is given, the entire list of accounts will be displayed.
Todays Account Balance is similar to the previous, but allows the user the option of inputting
either the customer or account number.
We can then drill down to view:
The accounting entries for the day
The entries since the last statement date and
The 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
view 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 a statement for an account.
Average Account Balance enquiry for a given period can be generated . It provides the
accounts 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 a locked amount under various dates. We can also view the
charges that are unpaid by selecting the account criteria.
Furthermore, other enquires are available for viewing such as:
Inactive accounts
Details of credit and debit interest posted
Credit and debit interest accrued and
Credit and debit interest corrected.
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Lets go through some workshops on Enquiries, the first one is on Todays Account Balance.
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By selecting from the sub-menu Todays Account Balance and then inputting the Account
number, you will view the different Balances of the account.
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The second Enquiry is on Average Account Balance
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By selecting the sub-menu Average Account Balance, and then inputting the Account number
and the period, you will see the average Balance for the account during the period selected.
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Entries for Today is our last workshop
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By selecting from the sub-menu Entries for Today and then, inputting the Account number,
you will see todays transactions.
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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 the balances of the Banks Nostro accounts held with
outside banks.
In addition, all contract applications in T24 need accounts either Customer type or Internal
accounts for the movement of money be it for the disbursement of a loan or the taking of a
deposit.
Even if a Customer does not have an account with the bank, the bank needs to have at least
a Nostro account or internal accounts in order to deal with its assets and liabilities .
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This is what we learnt during this course
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T24 Induction Business - Account

Welcome to the T24 Accounts Course