Overdraft Product
Beginning at the main screen, select Admin, then Products from the drop-down menu. This will launch the Products menu.
Overdraft should be defined in the Savings product itself by enabling Overdraft allowed as shown in the illustrations below.
Select Savings Products.
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Create Savings Product

Details

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Please refer above Details - Image, Details mentioned above are updated with respect to the provided fields numbers.
  • 1 - Provide Overdraft Product name.
  • 2 - Provide Short name.
  • 3 - Provide Description of this product.

Currency

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  • 4 - Select Currency. Need to have defined required currency: Currency Configuration
  • 5 - Provide Decimal places.
  • 6 - Provide Currency in multiples of. This is to provide total rounding off amount. For example: 10, so Total amount gets rounded of to 10's.

Terms

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  • 7 - Provide Nominal annual interest (Rate of interest) - Will calculate the interest on the positive balance.
  • 8 - Select Interest compounding period. For more information refer: Savings Interest Calculation and Posting Daily Monthly Quarterly Semi-Annual Annually
  • 9 - Select Interest posting period - Interest get posted for the selected frequency period. For more information refer: Savings Interest Calculation and Posting Monthly Quarterly Semi-Annual Annually
  • 10 - Select Interest calculated using. For more information refer: Savings Interest Calculation and Posting Daily Balance Average daily balance
  • 11 - Select Days in year - depending upon your financial days in a year practice. 365 Days 360 Days

Settings - Enabling overdraft

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Skip to 19:
12 to 18 are the other fields which are required for creating - Savings Products, you can ignore and skip to 19.
  • 19: Checking the check box enables Overdraft allowed and opens up new fields: 19-a, 19-b and 19-c.
  • 19-a: Maximum Overdraft amount limit - Set overdraft limit amount here, example: 100000 where an overdraft cannot be crossed with this set limit.
  • 19-b: Nominal annual interest for overdraft - Provide annual rate of interest. Will calculate the interest on the negative balance, that is, on the overdraft amount.
  • 19-c: Min Overdraft Required For Interest calculation - Provide in case you want to provide minimum overdraft required for interest calculation.

Charges

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In order to use Add charge, you should have already defined it in charges. For more information on charges refer here: Charges

Accounting

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By default Accounting will be disabled - None:- Meaning If you are using this product for various transactions like deposits, withdrawals, etc. These transactions are not passed in journal entry.
Enabling accounting for the savings product:->> You should have created chart of accounts, for more information refer: https://mifosforge.jira.com/wiki/display/docs/Chart+of+Accounts+and+General+Ledger+Setup.>> To enable Accounting, you need to select cash accounting. As of now, Mifos x supports only cash accounting for savings product.
  • Cash
>> Map accounts with respect to the savings product accounts. For information on these accounts refer: A Possible accounting Spec - Accounting rules for savings.
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Advanced Accounting Rule

On clicking on the show button, it enables Advanced accounting rule.
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If you click on Add button, it will expand and show up selection drop-downs.
  • Configure Fund sources for Payment Channels. Example: In the image shown above, Payment type - Cheque is mapped to Fund source - Bank. So whenever payment type is used for transaction. Journal entry for Account - Bank will be passed.
  • Map Fees to Income Accounts.
  • Map Penalties to Specific Income Accounts
Click on Submit button to Save/Create savings product.
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Last modified 2yr ago