Posting and Balance Management

Efficiently managing postings and balances is critical for financial systems to ensure accurate record-keeping, compliance, and seamless operations. Automation can streamline these processes, reduce human error, and improve real-time capabilities. In this article, we explore how to automate postings and balance management, highlight real-world use cases, and provide code samples for implementation.

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What Are Postings and Balance Management?

Postings

Postings are the ledger entries that reflect changes in wallet balances. They result from movements and are categorized as debits or credits, depending on the accounting type.

Balance Management

Balance management involves monitoring and controlling the funds in wallets, ensuring that balances remain within defined limits and reflect real-time changes due to transactions or events.

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Key Components for Automation

1. Rules for Validation

• Rules ensure postings adhere to business policies, such as not allowing overdrafts or ensuring compliance with regulatory limits.

• Example Rule:

  • Ensure no wallet has a negative balance:

    {
      "rule_name": "disallow_negative_balance",
      "parameters": {
        "threshold": 0
      }
    }

2. API Endpoints

• APIs allow external systems to automate postings and retrieve balance updates in real time.

• Key API Examples:

  • Create Posting:

    POST /api/v1/posting/
    {
      "movement_id": "mov001",
      "debit_wallet": "/group/customers/john-doe/savings/USD",
      "credit_wallet": "/chart/company/operational-account/default/USD",
      "amount": 500.00,
      "attributes": {
        "transaction_type": "refund"
      }
    }

  • Get Balance:

    GET /api/v1/wallet/{wallet_id}/balance

3. Kafka for Real-Time Updates

• Kafka topics are used to broadcast posting and balance events for downstream processing.

• Example Kafka Topics:

  • posting_updates: Publishes updates to wallet balances.

  • balance_alerts: Sends alerts if balances breach defined thresholds.

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Automated Use Cases

1. Overdraft Prevention

• Scenario: Ensure customers do not exceed their account limits.

• Solution:

  • Define a rule to validate sufficient funds before allowing movements.

  • Use an API to check the wallet’s balance in real time.

  • Automate alerts via Kafka for any potential overdraft attempts.

• Code Sample:

  {
    "rule_name": "validate_sufficient_funds",
    "parameters": {
      "minimum_balance": 0
    }
  }

2. Automated Fund Reallocation

• Scenario: Redistribute funds automatically between corporate wallets based on thresholds.

• Solution:

  • Monitor wallet balances via Kafka events.

  • Trigger an instruction to transfer funds using an API if the balance falls below the threshold.

• Code Sample:

  POST /api/v1/instruction/
  {
    "id": "auto_reallocation",
    "movements": [
      {
        "debit_wallet": "/chart/company/treasury/default/USD",
        "credit_wallet": "/chart/company/payroll/default/USD",
        "amount": 10000.00
      }
    ]
  }

3. Fraud Detection

• Scenario: Identify and halt suspicious high-value transactions.

• Solution:

  • Use Kafka to monitor all postings in real time.

  • Apply rules to flag postings exceeding a certain amount or frequency.

  • Suspend the transaction and alert compliance teams for review.

• Code Sample:

  {
    "rule_name": "flag_large_transactions",
    "parameters": {
      "threshold": 10000.00
    }
  }

4. Automated Refund Processing

• Scenario: Process refunds without manual intervention.

• Solution:

  • Create an instruction to reverse prior postings.

  • Automate the generation of postings to credit customer wallets.

• Code Sample:

  POST /api/v1/instruction/
  {
    "id": "refund_001",
    "movements": [
      {
        "debit_wallet": "/chart/company/operational-account/default/USD",
        "credit_wallet": "/group/customers/john-doe/savings/USD",
        "amount": 500.00,
        "attributes": {
          "transaction_type": "refund"
        }
      }
    ]
  }

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Best Practices for Automating Posting and Balance Management

1. Use Fine-Grained Rules: Ensure rules are specific to business needs, like transaction limits or customer segments.

2. Implement Real-Time Monitoring: Use Kafka to continuously monitor postings and balances for anomalies.

3. Leverage API Integration: Automate interactions between the ledger and external systems to streamline operations.

4. Audit and Compliance: Maintain detailed logs for all automated postings and balance changes to ensure traceability.

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