Creating a Deposit Contract
At the end of the article you can watch a VIDEO GUIDE
Creating a deposit contract is only possible if there is a share contract, provided the legal entity type is CPC.
A deposit contract can be created in two ways:
- From the client profile, click the "Create" => "Deposit" button.
- Go to the Deposits section.
"Deposits" Section
When navigating to the "Deposits" section, a page with a menu opens, containing the following tabs:
- Search — search can be performed by several criteria, such as ID, contract number, client's last name, etc.
- "New Deposit Contract" button.
- "Deposit Products" link, which opens the "Deposit Products" directory, displaying all (active) deposit products registered in the system.
Deposit Contract Functionality
After creating a deposit contract, the following functions become available:
Create Cash Flow — income/expense operations are processed, where you can select how they will be conducted (Bank transfer or cash).
Process Contract — updating account information for a specific period (accruals).
Adjustments — menu for performing complex operations on the contract.
Schedule — displaying the deposit schedule (monthly accruals, deposit acceptance and replenishment, withdrawal of funds from the deposit).
Early Termination — a three-stage early termination process:
Deposit Termination (you need to enter the date and select "Start Process").
Return of Previously Paid Interest (in case the accrued interest was previously paid to the client).
Interest Recalculation (you need to enter the termination date and select "Start Process").
Below is the main information on payments made and account changes:
- Total — this field displays all accrued debt on the contract (by amount type), but not yet repaid, broken down by accounting type (balance/off-balance).
- Future Payments — upcoming payments to the client are displayed. Interest payments will be updated according to the interest payment frequency specified in the product, and the principal will be displayed until the contract is closed.
- Detailed Transaction Breakdown — contains all operations on the client's account (Cash Flow, Accruals, Repayments, etc.). Each operation indicates the accounting type (Balance/Off-balance).
Income for Deposit Contract Amount
Acceptance of a deposit is reflected by creating a new Cash Flow – Income.
Click the Create Cash Flow button, the system will automatically generate an income for the deposit amount (94%) + voluntary contribution amount (reserve fund 6%). Click the "Save" button.
As a result, two Cash Flows will be created at once:
- Income for the deposit amount.
- Income for the voluntary contribution amount, which will be displayed in the financial information of the share contract.
Deposit Replenishment
Deposit replenishment is carried out by creating a new Cash Flow – Income. To replenish a deposit, you need to consider the minimum additional contribution amount (if specified in the deposit product). Also, keep in mind that the initial deposit amount plus additional contributions cannot exceed the maximum deposit size specified in the deposit product.
If a reserve fund was formed when creating the deposit contract, then when replenishing the deposit, the additional contribution will be credited minus the reserve fund rate. In this case, when creating an Income Cash Flow, the system will automatically offer to create two Cash Flows for the deposit amount (94%) and for the voluntary contribution amount (6%) of the specified sum.
To view the deposit accrual schedule, click the "Schedule" button at the top of the page.
Tax Base and Refinancing Rates
In this case, the tax rate can be either 35% or 30% (for non-residents).
The tax base is calculated as follows (ruble deposit):
where:
- P — deposit amount,
- I — deposit interest rate,
- Ref — refinancing rate,
- j — period in days for which personal income tax is accrued,
- k — number of days in the calculation year (365 or 366).
The refinancing rate as of 18.12.2017 is set at 7.75%.
Refinancing rates are recorded in the "Refinancing Rates" directory.
To update the rate, click the "Create" button, fill in the Name, rate amount, and effective date, then click the "Save" button.
Creating a Deposit Contract
When selecting "New Deposit Contract", a form opens with two tabs: "Deposit Contract", "Deposit Product". If the deposit is term-based, another tab will appear - "Recalculation Rates".
Deposit Contract
Contains the following fields:
- Contract Number — filled automatically in sequential order or according to established parameters.
- Creation Date — the current date is automatically set.
- Branch — pulled automatically; data is taken from the loan specialist settings specified for the client.
- Division — pulled automatically; data is taken from the loan specialist settings specified for the client.
- Client — search for a shareholder client; performed by Last Name, Client ID, passport number, etc.
- Loan Specialist — the specialist creating the contract.
- Deposit Product — select from the list of active deposit products, a product suitable for the client's conditions.
- Deposit Amount/Currency — specify the amount deposited by the client in "Ruble" currency.
- First Interest Payment Date — one month from the contract creation date/period may be determined by the deposit product conditions.
- Planned Deposit Return Date — pulled automatically depending on the deposit contract term, if the contract is term-based.
- Bank Settlements — checked if interest payments are made to the client's bank account (not through cash).
- Insurance — when checked, additional fields open where you can enter deposit insurance information (premium rate or amount, policy number), which are informational only.
- Create Reserve Fund — when checked, the system will generate a voluntary share contribution of 6% of the deposit amount.
Deposit Product
In this tab, all fields are filled according to the selected product template. Conditions can be changed individually for a specific case.
Recalculation Rates
The interest rate at which accruals on the deposit amount are recalculated in case of early contract termination, if the deposit contract is term-based.
The tab is filled according to the selected deposit product template. Conditions can be changed individually for a specific case.
To save the entered data, click the "Submit" button.
New tabs appear to the left of the contract form: "View", "Edit", "Financial Information", "Processes", "Operations". The ability to generate print forms also becomes available.
Reserve Fund Formation
If a reserve fund needs to be formed when creating a deposit contract, keep in mind that the deposit amount minus the reserve fund rate should not be less than the minimum deposit size established by the deposit product.
For example, the reserve fund rate is 6%, and the minimum deposit size is 10,000 rubles. However, the system will not allow opening a deposit for 10,000 rubles and will display an error "Deposit amount is less than the minimum deposit product amount", because 6% of 10,000 (600 rubles) will automatically be allocated to the voluntary share contribution, while the deposit will be 9,400 rubles.
After saving all entered data, a reminder about the need to process the income for the contribution amount will be displayed at the bottom of the page.
