Linking Products to Accounting
  • Updated on 11 Jul 2019
  • 5 minutes to read
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Linking Products to Accounting

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Financial Actions

These are the accounts you can add to your Chart of Accounts.

After linking them to GL Accounts, Mambu will automatically post the journal entries on the correspondent GL Account whenever a transaction occurs.

For Loans :

  • Portfolio Control – the current asset account that is controlling the product portfolio.
  • Transaction Source  – the current asset account that is managing your money source.
  • Write-off Expense – the expense account that you use when cancelling or writing off an account.
  • Interest / Fee / Penalty Income – the income accounts you recognize when cash is received
  • Interest / Fee / Penalty Receivable – are the current asset accounts used for managing the interest, fees or penalties you expect to earn in the Accruals Methodology

For Savings :

  • Transaction Source – the current asset account that is managing your money source.
  • Savings Control – the current liability account that is controlling the product portfolio.
  • Interest Expense – the expense account that you use when have to pay interest for the deposits.
  • Interest / Fee Income – the income accounts you recognize when cash is received
  • Overdraft Portfolio Control – the current asset account that is controlling the product portfolio.
  • Overdraft Write-Off Expense – the expense account that you use when cancelling or writing off an account.
  • Overdraft Interest Income – the income account you recognize when cash is received

Loans - Product Rules under Cash basis Accounting

The following table shows Mambu's behavior after the accounting rules per product have been set:

Loans Debit Credit
Loan Disbursement Portfolio Control (Loan Portfolio Control) Fund Source (Banks/Cash on Hand)
Principal Write-Off Write-Off Expense Portfolio Control (Loan Portfolio Control)
Principal (Re)paid Fund Source (Banks/Cash on Hand) Portfolio Control (Loan Portfolio Control)
Interest Paid Fund Source (Banks/Cash on Hand) Interest Income
Fee Paid Fund Source (Banks/Cash on Hand) Fee Income
Penalty Paid Fund Source (Banks/Cash on Hand) Penalty Income
Please Note
In parentheses above you can see some examples of accounts that could be used to link the loan products to accounting.

After enabling the Cash basis Accounting method, Mambu will display dropdown menus where you can choose the accounts depending on the type (asset, expense or income) in each one of them

Loan Product - Accounting Rules - Cash Methodology

After saving the changes the transactions will start being logged automatically in Accounting following those rules.


Loans - Product Rules under Accruals Accounting

In the following table you can see Mambu's internal behaviour when you define the accounting rules in a Loan Product under Accruals Accounting:

Loan Rules Debit Credit
Loan Disbursal Portfolio Control (Loan Portfolio Account) Fund Source (Banks/Cash on Hand)
Interest Applied Interest Receivable Interest Income
Fee Applied Fees Receivable Fee Income
Penalty Applied Penalties Receivable Penalty Income
Principal (Re)paid Fund Source (Banks/Cash on Hand) Portfolio Control (Loan Portfolio Account)
Interest Paid Fund Source (Banks/Cash on Hand) Interest Receivable
Fee Paid Fund Source (Banks/Cash on Hand) Fee Receivable
Penalty Paid Fund Source (Bank/ Cash on Hand) Penalty Receivable
Write-Off Expense Write-Off Expense Portfolio Control (Loan Portfolio Account)
Interest Write-Off Write-Off Expense Interest Receivable
Fee Write-Off Write-Off Expense Fee Receivable
Penalty Write-Off Write-Off Expense Penalty Receivable
Please Note
In parentheses above there are some examples of accounts that could be used to link the loan products to accounting.

Like in the previous method, after enabling the Accruals Accounting method, Mambu will display dropdown menus where you can choose the accounts depending on the type (asset, expense or income) in each one of them.

Loan Product - Accounting Rules - Accrual Methodology

For loan product types with accrual accounting you can select for the Interest Accrued Method to be Daily. Every day, when the End of Day Process runs, Mambu will log journal entries in accounting for the total amount of interest that is accrued (and not yet applied) on your active accounts. On the next process execution, Mambu will reverse the previous day's entries and log new ones with the updated accrued amounts.

Interest Accrual Method dropdown with Daily and Monthly options

Click on save and from this point onwards Mambu will log all of your transactions according to these rules.


Deposits - Product Rules

For deposits Mambu will manage the accounting following these rules:

Savings Rules Debit Credit
Savings Deposit Deposit Reference (Banks/Cash on Hand) Savings Control (Savings or Deposit Account)
Savings Withdrawal Savings Control (Savings or Deposit Account) Deposit Reference (Banks/Cash on Hand)
Savings Interest Applied Interest Expense Savings Control (Savings or Deposit Account)
Fee Applied Savings Control (Savings or Deposit Account) Fee Income
Overdraft WriteOff Overdraft Write-Off Expense Overdraft Portfolio Control
Overdraft Withdrawal Overdraft Portfolio Control Deposit Reference (Banks/Cash on Hand)
Overdraft Principal (Re)paid Deposit Reference (Banks/Cash on Hand) Overdraft Portfolio Control
Overdraft Interest Paid Deposit Reference (Banks/Cash on Hand) Interest Income
Overdraft Fee Paid Deposit Reference (Banks/Cash on Hand) Fee Income
Please Note
In parentheses above you can see some examples of accounts that could be used to link the deposit products to accounting.

Just like for Loans, after enabling the accounting in the product, select the account depending on the type (asset, liability, expense or income) in the dropdown menus > save it and from that moment on, the transactions will be automatically logged in Accounting.

  • Deposit Products with Cash Methodology

Deposit Product - Accounting Rules - Methodology Cash

  • Deposit Products with Accrual Methodology

Deposit Product - Accounting Rules - Methodology Accrual

For deposit product types with accrual accounting, the Interest Accrued Method is Daily. The process is the same as for loan product types. If you allow overdrafts and want to use this option, define the Interest payable and Interest Receivable and journal entries will be posted.

When overdraft interest or fees are applied on the account, accounting entries will be posted. Mambu will credit the Overdraft Interest or Fees Income rule and debit the Overdraft Portfolio Control.


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