Term Deposit Scenario

Case
A company that has liquid cash in a USD 200,000 bank account will create the following term deposit accounts to use its money.

100,000 USD will be deposited with 1-year maturity and 1% yield.
100,000 USD will open a 9-month term deposit with 0.1% interest per month.

Transactions

Preliminary Transactions

1. Add withholding rate definitions for banks that will make time deposit transactions.
2. Create an accounting chart of accounts definitions of time deposit returns.
3. Create budget items of time deposit returns and link ledger account codes.
4. Create the term deposit category and select the transaction officer employees.
5. Create the term deposit return account transition transaction category and select the transaction officer employees.

Main Transactions

1. Open a term deposit with a one-year yield to be received at maturity.
2. Deposit into a term deposit account with monthly returns.
3. Rediscount the term deposit before its due date and generate income accrual.
4. Rediscount the previously rediscounted term deposits before their maturity date and create an income accrual.
5. Calculate the yield on a deposit that is due.
6. Withdraw an overdue deposit before it's due.

Post-Transactions

1. Check the accounting records of term deposit accounts.
2. Check the budget records of term deposit accounts.
3. Check the bank records of term deposit accounts.
4. Check the withholding-prepaid taxes accounting account records of bank withholding deductions of term deposit return account transition transactions.
5. Check the income accrual accounting records of the term deposit yield rediscount accounts.
6. Check the dates and numbers of term deposit return dates on the cash flow statement.
7. Check that the sum of time deposits is in the active accounts in the cash flow statement.

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