GL Posting Rules

GL posting rules define how financial operations (loan disbursements, deposit interest, fees, manual entries) are translated into balanced debit/credit journal entries in the general ledger.

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What Is a GL Posting Rule?

A GL posting rule is a template that tells the system: "When this operation happens, create these debit and credit lines against these GL accounts."

Each rule consists of:

1. A rule header — The rule's identity, mode, and metadata
2. One or more rule details — The individual debit/credit lines (see GL Rule Details)

Rule Header Table

The GL Posting Rules page shows all rule headers:

Column	Description
Rule Code	Unique identifier (e.g., LOAN.DISBURSE, DEP.INT.ACCRUE)
Rule Name	Descriptive name
Posting Mode	SYSTEM, MANUAL, or BOTH
Tags	System tags that bind the rule to operations
Detail Count	Number of debit/credit lines
Approval Status	Draft, pending, or approved

Creating a GL Posting Rule Header

1. Click Create GL Posting Rule
2. Fill in the form:

Field	Description	Required
Rule Code	A unique code following the convention MODULE.OPERATION	Yes
Rule Name	A descriptive name	Yes
Posting Mode	How this rule is used (see below)	Yes
Description	What this rule does	No
Tags	System tags for automated resolution	No

3. Submit the form
4. After creation, add rule details (debit/credit lines)

Posting Modes

Mode	Description	Used By
SYSTEM	Exclusively for automated operations (EOD, disbursement, etc.)	Loan operations, interest accrual, fee charges
MANUAL	Exclusively for manual journal entries by accountants	Back-office posting, adjusting entries
BOTH	Can be triggered automatically or used manually	Flexible rules shared between system and manual posting

TIP

For automated operations like loan disbursement or interest accrual, always use SYSTEM mode. For journal entries created by accountants through the back-office posting screen, use MANUAL or BOTH.

System Tags

System tags are the mechanism by which automated operations find their GL posting rule. When a loan is disbursed, the system looks for a rule tagged with LOAN_DISBURSEMENT.

How Tag Resolution Works

Financial Operation (e.g., Loan Disbursement)
  → Looks up tag: LOAN_DISBURSEMENT
  → Finds rule header bound to that tag for this product
  → Reads rule details (debit/credit lines)
  → Resolves COA accounts and amounts
  → Creates balanced journal entry

Common System Tags

Tag	Operation
LOAN_DISBURSEMENT	Loan disbursement
LOAN_REPAYMENT_CASH	Loan repayment via cash
LOAN_REPAYMENT_BANK	Loan repayment via bank transfer
LOAN_INTEREST_ACCRUAL	Daily interest accrual
LOAN_FEE_CHARGE	Fee applied to a loan
LOAN_PENALTY	Late payment penalty
LOAN_WRITEOFF	Loan write-off
LOAN_RECOVERY	Recovery after write-off
DEPOSIT_INTEREST_ACCRUAL	Deposit interest accrual
DEPOSIT_INTEREST_CAPITALIZE	Deposit interest capitalization
SHARE_PURCHASE	Share purchase
SHARE_DIVIDEND	Dividend distribution

Rule Scoping

GL posting rules are scoped by business unit type. This means:

• A rule created for BU Type "Branch" is available to all branches
• Different business unit types can have different rules for the same operation
• Rules must be approved before they can be used

Binding Rules to Products

After creating a GL posting rule, it must be bound to the relevant product:

1. Navigate to the product (e.g., a loan product)
2. Open the GL rule binding section
3. Select the rule header for each required operation
4. Save the bindings

A loan product needs at minimum:

• LOAN_DISBURSEMENT — For when the loan is disbursed
• LOAN_REPAYMENT_CASH or LOAN_REPAYMENT_BANK — For repayments
• LOAN_INTEREST_ACCRUAL — For daily interest

Approval Workflow

1. Draft — Rule is created but not yet active
2. Pending Approval — Submitted for review
3. Approved — Ready for use
4. Rejected — Sent back for correction

WARNING

Only approved rules can be used in transactions. If an automated operation cannot find an approved rule with the required tag, the operation will fail with an error.

Next Steps

• GL Rule Details — Add debit/credit lines to your rules
• GL Posting Approval — Configure approval policies