How Can we Achive Over Draft Functionality

[nadh.oracleapps@yahoo.com]

Dear All,

How Can we Achive Over Draft Functionality with out Trasury Module.

[karthikeyanp1981]

Dear Nadh,

All investments and borrowings can be taken care of in the Treasury Module, but its always not worth to take up a module for one feature alone. We can settle for either a workaround or a customization.
We are speaking about bank overdraft here, this would mean we receive a funds from bank for operating our business or any other purpose. Once we are in a better financial position, we would pay them back with interest.
So there are two aspects in it,
First, Receipt of Funds from Bank
Second, Payment of Funds and Interest to the Bank.

Possible workaround could be,
to create a customer with the bank name, and make a transaction and receipt for the same. At the time of repayment one can make a refund from AR in R12, or you can create customer as supplier in AP and make the payment.
There could be better approaches ... lets await for views from other members ....

Regards,
Karthikeyan

[nadh.oracleapps@yahoo.com]

Thanks Karthikeyan...

[abhyankarnarayan]

Hi Nadh,

Please let me know what exact functionality you are looking for with Overdraft.
If its just a type of bank account wherein the bank gives you a facility to over draw your funds, thats something we can map with a standard bank account. Supply a liability account and just let it be like that.

Once you try to make payment out of that account, it will have overdraw balance. This you can map @ ur liability side in any FSG. For all practical purposes it will be a liability account ofcourse. When you receive something from customer, it will be debited.

At the end, it will show the balance of your liability or 0, if everything is received/paid.

If you are not using the OD account to pay for any invoices, you can use it for interbank transfer in CM module.

Let me know if this could work?

Thanks,
Narayan