Voluntary Demand Deposits & Fixed Term Contracts

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Voluntary Demand Deposits & Fixed Term Contracts within SmartERP.

Configure high-yield voluntary demand savings accounts, fixed term deposit certificates, maturity rules, and early withdrawal penalties.

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2. Prerequisites & Security Access Groups#

• Required Modules: smarterp_sacco_core, smarterp_equb, smarterp_loan_management
• Security Groups:
  • SACCO Loan Officer (Technical ID: smarterp_sacco.group_sacco_officer)
  • SACCO Credit Committee Member (Technical ID: smarterp_sacco.group_sacco_committee)
  • SACCO General Manager (Technical ID: smarterp_sacco.group_sacco_manager)
• Master Data Dependencies: Member KYC profiles, share capital registers, savings product tiers, loan products with reducing-balance schedules, and Equb rotational pool configurations.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the SACCO & Equb app icon.
4. From the top navigation bar, open SACCO & Equb → Members → KYC Registry / Savings Accounts / Loan Applications / Equb Pools.

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Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Member Identification Number (Mandatory): Unique membership number complying with Ethiopian Cooperative Commission rules
   • Full Name & Kebele ID (Mandatory): Verified member identity with physical residence verification
   • Share Capital Subscriptions (Mandatory): Subscribed shares not exceeding statutory 10% member ceiling (Proclamation 985/2016)
   • Primary Savings Product (Mandatory): Compulsory regular monthly savings account configuration
3. Configure optional operational parameters and localized tags as required:
   • Guarantor & Collateral (Optional): Approved co-signers with locked savings accounts or registered vehicle/property lien
   • Equb Rotational Group (Optional): Linked digital Equb pool with lottery draw eligibility
   • Beneficiary Nominee (Optional): Designated next of kin for death or disability benefit transfer
4. Click the Save icon in the control bar to commit the record.

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Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Application → KYC Verified → Approved → Active / Disbursed → Delinquency Monitored → Settled).
• Ledger & System Impact: Loan disbursement debits loans receivable and credits cash/bank; loan repayments credit interest income and loan principal, updating 5-tier NBE provisioning registers.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

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Product Differentiation: Demand vs. Fixed Term#

To mobilize surplus liquidity from members, SACCOs offer specialized interest-bearing savings vehicles:

• Voluntary Demand Savings: Flexible deposit account allowing deposits and withdrawals at will; offers standard interest rates (e.g., 7% – 9% per annum).
• Fixed Term Deposits (Time Deposits): Contractual deposits locked for specified durations (6 months, 1 year, 2 years, 3 years) offering premium compound returns (e.g., 11% – 14% per annum).

Creating a Fixed Term Deposit Contract#

1. Navigate to SACCO > Savings > Fixed Term Deposits and click New.
2. Select Member: W/ro Aster Mamo.
3. Enter Contract Parameters:
   • Principal Deposit Amount: 200,000.00 ETB.
   • Tenure Duration: 12 Months.
   • Contract Start Date: 2026-10-01 | Maturity Date: 2027-09-30.
   • Agreed Annual Interest Rate: 12.5% per annum.
   • Compounding Frequency: Monthly Compounding.
4. Select Maturity Action:
   • Auto-Rollover Principal & Interest: Re-invests total balance for identical tenure.
   • Rollover Principal Only: Transfers accrued interest to voluntary demand account.
   • Close on Maturity & Disburse: Full payout to member bank account.
5. Click Confirm & Lock Term Deposit.

Early Premature Liquidation Rules#

If a member experiences unforeseen financial distress and requests premature liquidation before maturity:

1. Open the active Term Deposit record and click Request Premature Liquidation.
2. The system computes early withdrawal penalties: $$\text{Interest Forfeiture} = \text{Total Accrued Interest} \times 50\%$$ $$\text{Administrative Breakage Fee} = \text{Principal} \times 1.0\%$$
3. The member receives the net principal plus unpenalized interest.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • SACCO: Accrue monthly member savings interest (smarterp_sacco.ir_cron_savings_interest): Runs on the final day of each calendar month to credit interest
  • Loan: Evaluate 5-tier NBE delinquency classification (smarterp_sacco.ir_cron_loan_delinquency): Runs nightly to compute loan loss provisions per NBE directives
  • Equb: Execute scheduled lottery draw (smarterp_sacco.ir_cron_equb_draw): Runs on defined pool cycle dates using provably fair random selection
• Custom Print Templates & Reports:
  • Member Savings Passbook & Transaction Ledger
  • Loan Amortization Schedule (Reducing Balance)
  • NBE 5-Tier Delinquency & Loan Loss Provisioning Statement
  • Annual Patronage Dividend Distribution Schedule
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#