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 The first topic on our agenda is the learning objectives

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 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.

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 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.

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 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.

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 This slide illustrates the links to various static tables that are used in the ACCOUNT
application.
All of the Customer’s 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.

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 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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 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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 Let’s 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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 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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 Remember: We may also used command line to create accounts – But for
internal accounts the command line prompt would be
AC I USD14000
And not AC I F3

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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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 Let’s 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 sub-menu Open Nostro Account, then to fill in the required
information.

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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 account’s 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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 Let’s 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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 Service conditions are used to differentiate accounts for preferential treatment.
These conditions could be with respect to Interest and charges, capitalization,
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.
Capitalization 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.
Possible to set account level conditions or Group specific conditions: If a Bank
desires to apply different interest conditions for different groups of Customers

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 and / or accounts, specific rules can be setup for each. The conditions that are
set up for interest and charges on a specific account override the conditions set
up at the group level.

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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.
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

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 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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 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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 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.
Today’s 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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 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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 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 Bank’s 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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T24 Account

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