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Please help me any one to know about FIXED DEPOSITS Process in FI .My project is on go live stage

Former Member
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Hi friends please help me any one. My client have a new requirement FIXED DEPOSITS PROCESS in FI.But i don't know how to full fill these requirement .Is there any stranded configuration in SAP FI To full fill these requirement .Any one know about this process please suggest me on this .He wanted to calculate interest on this Fixed deposits and print  the cheque for interest  ammount .And based on the type of fixed deposits intrest rate and type is varied . And he have a two types of fixed deposits these are mentioned below in detailed with interest rate also. I have one doubt it is full with ITEM INTEREST CALCULATION PROCEDURE are not?? please let me know .I am struggling with this please help me any one  have any answer on this please send that document or answer to my mail id :nagavishnuvardhan.r@gmail.com

TYPE OF DEPOSITS

  1. 1.       Fixed                     2 Years and 3 Years
  2. 2.       Cumulative         3 Years only

  1. 1.       Deposits :  Public and Share Holders  - on Reserves and Surplus 25% Public and 10% from S.H

(Total Deposit amount should not exceed the prescribed limit).

Deposits – Master

Type of Deposit

Term of Deposit

Scheme Start Date

Minimum amount

Multiples amount

Rate of Interest

Active / inactive  Flag

Accepting Renewal

Accepting fresh deposit from all

INTEREST CALCULATION:

  1. 1. Computer system should validate the deposits. i.e. It should check the status code of deposits =’L’-Live and the process/ generate regular interest. The quarterly Interest to be processed only for deposit receipt issued cases.
  2. 2.  If computer finds any other status except ‘L’ for fresh / renewed deposits and the while processing interest, then error report to be generated quoting the status code of the said deposits.

  1. 3.  Interest calculation should be on live Fixed / Cumulative deposits based on the accepted  interest rates.

  1. 4.  Interest to be calculated for entire financial year for a particular deposit / FD account (multiple deposits held in single account) for deduction of income tax

  1. 5.  If it is fresh deposit (both FD/CD), the interest calculation will commence from date of deposit. Otherwise, it has to be calculated on a quarterly basis.

  1. 6. The interest for deposits received last fortnight of any quarter (i.e. after interest process is over

for the quarter) the interest due from the deposit to the end of the particular quarter to be paid / accrued along with interest payable for the subsequent quarter.

  1. 7.  INTEREST ON FIXED DEPOSITS: is payable quarterly on 30th June, 30th September, 31st December & 31st March

  1. 8. INTEREST ON CUMULATIVE DEPOSITS: is compounded quarterly on 30th June, 30th September, 31st December & 31st March and payable on maturity i.e. after 3 years. The CD interest will accrue every quarter and tax has to be deducted wherever applicable.

  1. 9.       Interest to be processed for every quarter as below:
  2. a)      30th June                    (First quarter)                              91days
  3. b)      30th September         (Second quarter)                             92days
  4. c)       31st December           (Third quarter)                               92days
  5. d)      31st March                   (Fourth quarter)                            90days

  1. 10.   While processing quarterly interest, the following control to be generated / printed for verification purpose.
  • No of live fixed deposits read                     Total no of deposits
  • Gross interest generated                             Gross Interest amount
  • Tax deducted                                                    No of cases
  • Tax                                                                   Tax Amount
  • Net interest                                                       Net interest amount
  • No of live cumulative deposits read         Total no of deposits
  • Gross interest generated                             Gross Interest amount
  • Tax deducted                                                    No of cases
  • Tax                                                                    Tax Amount
  • Net interest                                                       Net interest amount
  • No of deposits maturing                               No of cases maturing during next three months

  1. 11.   Interest calculation will be based on number of days of the relevant quarter (e.g.25000*10%*91/365=623.29) for both FD/CD. If it is leap year 366 days to be taken for whole financial year (e.g.25000*10%*91/366=621.58).  

  1. 12.   Interest to be calculated on cumulative deposit quarterly for a period of 3years as per the example table given below:
  2. e.g.

Interest Calculation for 10%

Principal + Interest

Interest

Maturity value

Quarter

Year

1

  1. 25000.00
  2. 623.29

I


2

  1. 25623.29
  2. 645.85

II


3

  1. 26269.13
  2. 662.13

III


4

  1. 26931.26
  2. 664.06
  3. 2595.32

IV

Year 1



5

  1. 27595.32
  2. 687.99

V


6

  1. 28283.31
  2. 712.89

VI


7

  1. 28996.21
  2. 730.86

VII


8

  1. 29727.07
  2. 733.00
  3. 2864.75

VIII

Year 2



9

  1. 30460.07
  2. 759.42

IX


10

  1. 31219.48
  2. 786.90

X


11

  1. 32006.38
  2. 806.74

XI


12

  1. 32813.12
  2. 809.09
  3. 3162.14

XII

Year 3



  1. 33622.21
  2. 8622.21
  3. 8622.21



  1. 13.   If a deposit matured and renewed in the same financial year, the interest paid during the financial year including maturity interest and the future interest to be taken into account for deduction of tax
  2. 14.   The accrued interest of CD in any financial year (between 3years) should not exceed Rs.5000/-. If so, tax has to be deducted in the relevant year at the rate 10% for the Assessees who submitted PAN. Otherwise, 20% TDS to be deducted.

Tax deduction at source (TDS)

  • The interest amount should not exceed Rs.5000/- in a financial year for income tax purpose
  • Income tax ceiling on the interest is Rs.5000/- for every financial year
  • If a depositor holds multiple deposits (both FD/CD) in a single FD account, the gross interest of all the deposits to be accumulated for the purpose of deduction of tax
  • No tax needs to be deducted if the interest does not exceed Rs.5000/- in a financial year
  • If interest exceeds Rs.5000/- in a financial year for a particular deposit / FD account, TDS @ 10% to be deducted on the gross interest if the depositor is an assessee and who has furnished his PAN for this purpose.
  • If the interest exceeds Rs.5000/- in a financial year but the depositor has not furnished his PAN and form15G/H, 20% of tax to be deducted on the gross interest.
  • No tax needs to be deducted for form15G/H with PAN given cases

Maturity interest

  1. 15.  If any FD/CD matures after a quarter, the balance interest to be processed for broken period (maturity) separately subject to deduction of tax for succeeding three months.

  1. 16.  Interest on cumulative deposits will be paid (subject to deduction of tax) after three years once the process of maturity interest is over.

  1. 17.   While processing maturity interest, the regular interest which was paid / accrued during the financial year also has to be taken into account for deduction of income tax.

  1. 18.   The maturity warrant date is to be the date maturity of the deposits which maturing during three months.

  1. 19. Over printing of interest warrants routine

  1. 1.   Regular interest warrants to be printed only for fixed deposits
  2. 2.  The date of regular quarter interest warrant is 30th June, 30thSeptember, 31st December, 31st 
  3. March.
    1. 3.   The warrants to be printed on pre-printed stationery
    2. 4.  While over printing the warrants, the following to be printed on the stationery in specified placed

On the cheque portion

  1. a. Warrant date (according to the frequency of the interest)
  2. b. Int wrt No (numeric)
  3. c. Dep Nr (if it is regular warrant, FD A/c number to be printed. Otherwise, FDR/CDR number which maturing has to be printed.
  4. d. Pay – Name of depositor has to be printed
  5. e. Amount in words of the interest to be printed
  6. f. Amount in figures has to be printed on the space provided for the same
  7. g.If the wrt to be sent to bank directly, complete bank particulars viz, A/c No; nature of A/c, bank name and address and depositor name have to be printed on the face of the warrant.

                         On the counterfoil portion the following to be printed

                              a. 1st  row : A/c No deposit date    Dep amt                           

                              b. 2nd  row : Dep No mat date   Int rate  Int period          

                  c. name address of depositor to be printed in the space provided below to the above

                  rows

                  d. 3rd row (extreme right) : Warrant No

                  e. 4th  row (extreme right)   : Warrant date                

            f. 5th row : Gross int  TDS Total tax               Net Int 

  1. 5. The warrants have to be printed for the cases marked “W” (warrant) in the data base according the address of the depositors (address of depositors covered by ING Vysya Bank locations).
  2. 6.  Depositor address which is not covered by ING locations, a DD list to be generated for taking DDs for the cases marked ‘D’ (Demand draft) in the data base as per the format specified by the bank.

  1. 20.Generation of interest warrant data to submit to bank:
    1. a. After completion of warrant printing, data (only I/W cases) to be generated in excel format for upload by ING in their records as per the format specified by them for both quarterly / maturity interest
    2. b.  Data to be generated in excel format as specified ING Vysya Bank for taking demand drafts for the not covered by ING both quarterly / maturity interest

  1. 21.Interest warrant Register printing routine

Once over printing of I/W is over, the following registers to be printed for records and audit purpose

  1. a.       Quarterly FD interest warrant register sorted on A/c No with the following details

SL No

A/c No

Name

Of depositor

Dep No

Dep date

Mat date

Dep Amt

Interest

period

Gross Int

TDS

Net Int

MICR NO

Int Rate

Days

From date

To date

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Answers (2)

Answers (2)

Former Member
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You can review the Money Market in SAP.

Though you aren't going to be able to realise this requirement before go-live unless you have the resources in project team and at the Client.

Regards

Waza

Former Member