How to Add new Fixed Deposit?

Please follow the below step to add a new fixed deposit in the system:- 

For creating a Fixed deposit in the system, the User needs to create all the GL accounts which are required to be used for the purpose of Accounting of Fixed Deposit Principal and Interest including the relevant Bank Account from where the Deposit is being created.

A. The GL Accounts can be created using the following steps:- 

Step 1:- Login into the Accounts Section

Step 2:- Click on the "Settings" menu

Step 3:- Click on Add GL Account in System configuration

Step 4:- Select Tag as "General" for this purpose

Step 6:- Select G/L group name or the Parent name under which the GL account needs to be grouped. For e.g. Fixed Deposit - Sinking Fund

Step 7:- Enter the relevant GL Account name for e.g. Fixed Deposit with Saraswat Bank -Sinking Fund A/c

Step 8:- Click on Add Account 

 

B. How to Book a Fixed Deposit in the System :- 

Step 1:- In the Accounts section go to "Assets & Investments" menu

Step 2:- Click on Add New Fixed Deposit(FD)

Step 3:- Enter Investment date - The value date on which investment is made

Step 4:- Enter narration in Details - This is free text field to capture important details of the FD

Step 5:- Enter FD Receipt number

Step 6:- Enter principal Amount of Investment

Step 7:- Enter Rate of Interest of the FD

Step 8:- Select Mode for Interest calculation e.g. Simple or Compound

Step 9:- Select Frequency of Interest receipt for Simple mode or frequency of compounding for compound mode. For e.g. if Interest is received on every quarter end, then "Quarter end" frequency should be selected. If compounding frequency is quarterly, then "Quarterly" option should be selected.

Step 10:- Enter Maturity date of the Investment

Step 11:- Enter Maturity Amount - This is optional field. It can be filled if available and it is relevant only for compounding FDs because for Simple mode FDs, the maturity amount shall be same as initial Investment amount.

Step 12:- Select Debit and Credit GL Accounts from the available option. For e.g. the debit account shall be the GL account created by the User as "FixedDeposit with Saraswat Bank - Sinking Fund A/c" and credit account should be the "XYZ Bank A/c" from where the FD is created.

Step 13:- Select Interest GL account where the User would like the Interest to be credited and Penalty GL account for recording of any premature penalty if levied by the Bank at the time of redemption of the FD.

Step 14:- Click on Add Fixed Deposit.