Provisioning journal entry

The run computes ECL. The provisioning journal entry is what puts ECL into the books. This page shows the exact accounts hit, how the increment is calculated, and how to reconcile to the trial balance every quarter end.

Increment, not absolute

ECL sits as an asset-contra (allowance for impairment) on the balance sheet. Each quarter the system posts only the difference between the new ECL and the prior period's posted ECL. If the new number is higher, the journal is a charge to P&L impairment expense; if it is lower, the journal is a release.

# Per portfolio segment (loan product or product group)
prior_ecl = ifrs9.run.previous(segment).total_ecl
new_ecl   = ifrs9.run.current(segment).total_ecl
increment = new_ecl - prior_ecl

if increment > 0:
    # P&L charge
    Dr 5520 Impairment Loss             increment
    Cr 1290 Allowance for Loan Loss     increment
else:
    # Release
    Dr 1290 Allowance for Loan Loss     abs(increment)
    Cr 5520 Impairment Loss             abs(increment)  # negative impairment expense

Accounts hit

We use four accounts in the standard chart, all CBK-compliant. Each is reserved exclusively for IFRS 9 — manual postings to these accounts are blocked by an account.move rule.

One journal per segment

The system posts one journal per portfolio segment (loan product or product group, configurable). This keeps the P&L view granular without polluting it with thousands of line items.

Example posting on a Q3 run for a tenant with 4 active loan products:

Net P&L impact = +192,740 - 26,800 + 320,520 + 167,600 = +654,060.

Reference and analytic tagging

Every journal posted by the engine carries:

Reconciliation queries always filter on the run linkage rather than on the date or reference text — it survives if accountants rename references.

• Reference: IFRS9/Q4/2026/NRM — engine-generated, unique per run × segment.
• Move date: quarter-end (not posting date).
• Posting date: actual date the engine posted (typically T+3 to T+5).
• Analytic distribution: 100% to the product's analytic account.
• Run linkage: x_ifrs9_run_id field on the move points back to the run.

Quarter-end reconciliation

A clean reconciliation is the single most useful audit artefact. The system produces it automatically — Run → Reconciliation tab — but operators should still walk through it on a real GL extract every quarter.

1. Closing balance on 1290 should equal total weighted ECL on the current run.
2. Sum of charges/releases on 5520 for the quarter should equal the increment of the run.
3. Each journal reference IFRS9/Qx/yyyy/SEG should appear in 1290 and 5520 with equal-and-opposite postings.
4. No manual postings to 1290 or 5520 — if any exist, they must be documented.

# Pull the GL extract for accounts 1290 and 5520
# from the Accounting module:
# Reporting → Trial Balance → date range = quarter
# Filter: account 1290, 1291, 5520
# Export as XLSX

# In the run:
# Run → Reconciliation tab
# Click 'Compare to GL extract' → upload the XLSX
# System highlights any line in the GL that
# is not from an IFRS 9 run, and any run line
# that is missing from the GL.

Reversing a posted run

Posted runs are immutable. To correct a posted run you create a reversing run for the same period, post it, then post the corrected run.

1. Open the original run, click Reverse (CFO permission required).
2. System creates a new run in draft with negated ECLs; period_end and segments mirror the original.
3. Approve and post the reversing run. GL effect: original journals negated.
4. Create the new corrected run, take it through the normal lifecycle.
5. Audit pack tracks the trio: original → reverse → corrected, with a CFO note explaining why.

Worked scenarios

Reference

Account configuration

Extra fields on account.move from IFRS 9

Troubleshooting

See also

• Ifrs9
• Quarterly Run
• Audit Pack
• Treasury
• Writeoff