Overview
This glossary defines all key terms, concepts, and terminology used throughout Agatabo. Terms are organized alphabetically within categories for easy reference.Core Concepts
Tontine
A rotating savings and credit association (ROSCA) where members contribute regular savings and can access loans from the pooled funds. Tontines are common in Africa and provide financial services to communities without traditional banking access. Learn more →Organization User
Any person with access to Agatabo within your tontine organization. Organization users can have various roles (member, treasurer, accountant, administrator) that determine their permissions and capabilities. Example: John Mugisha is an organization user with “Member” and “Treasurer” roles.Member
An organization user who has been assigned a member role and can participate in savings and loans. Members are the primary participants in the tontine. Important: Member status is determined by role assignment, not by having a savings account.Ledger Account
A record that tracks the balance of a specific financial entity (member savings, loan, bank account, etc.). Every transaction affects at least two ledger accounts through double-entry accounting. Example: “Jane Uwase - Savings” is a ledger account that tracks Jane’s deposit balance.Member & User Management
Invitation
The process of adding a new person to the organization by sending an email with account activation instructions. Invitations include a secure link that expires in 7 days. Learn more →Role
A set of permissions that determines what an organization user can do in Agatabo. Common roles include Member, Treasurer, Loan Officer, Accountant, and Administrator. Learn more →Permission
A specific capability granted to a role (e.g.,savings:write, loans:read). Permissions can have scope:
- SELF: User can only access their own data
- ANY: User can access all organization data
Member Role
The role assigned to organization users who participate in savings and loans. Members can view their own account information and receive notifications about their financial activity.Active Member
An organization user with member role who has either a savings balance or an active loan. Used for counting membership statistics.Deposits & Savings
Deposit
A savings contribution made by a member. Deposits increase the member’s savings balance and the organization’s cash. Also called “contribution” in some tontines. Learn more →Savings Balance
The total amount a member has deposited minus any withdrawals. This represents the member’s equity in the tontine.Savings Ledger Account
The ledger account that tracks each member’s savings balance. Increases with deposits, decreases with withdrawals or dividend distributions.Total Savings
The sum of all member savings balances across the entire organization. Displayed on the dashboard as a key metric.Payment Method
How a deposit or payment was received: cash, bank transfer, mobile money (MTN, Airtel), check, etc. Used for reconciliation and reporting.Loans
Loan
Money borrowed by a member from the tontine’s pooled funds. Loans have specific terms including principal, interest rate, term, and repayment schedule. Learn more →Principal
The original loan amount borrowed, excluding interest. As payments are made, the outstanding principal decreases. Example: A 500,000 RWF loan has a principal of 500,000 RWF.Interest
The cost of borrowing money, calculated based on the loan’s interest rate and calculation type. Interest is revenue for the tontine.Interest Rate
The percentage charged for borrowing, expressed as either monthly or yearly. Used to calculate interest charges. Example: 5% monthly interest rate on a 100,000 RWF loan = 5,000 RWF interest per month.Interest Rate Type
MONTHLY: Rate applies each month- 5% monthly = 60% effective annual rate (if compounded)
- 12% yearly = 1% per month
Interest Calculation Type
SIMPLE: Interest calculated on original principal only, doesn’t compound.- Formula:
Total Interest = Principal × Rate × Term - Best for: Short-term loans, simple understanding
- Formula:
Amount = Principal × (1 + Rate)^Term - Best for: Long-term loans, investment lending
- Interest decreases as principal is repaid
- Fair calculation that reflects actual debt
- Best for: Standard commercial-style loans
Interest Payment Timing
IN_ADVANCE: Interest deducted upfront from disbursement- Member receives principal minus total interest
- Installments repay principal only
- Common in microfinance
- Member receives full principal
- Each installment includes principal + interest
- Standard commercial loan structure
Installment
A scheduled loan payment. Loans are divided into equal installments (monthly, quarterly, etc.) with specific due dates. Example: A 12-month loan has 12 installments, one due each month.Installment Type
EQUAL_PRINCIPAL: Each payment has the same principal amount, but interest decreases.- Payment amounts start high and decline
- Member knows exactly how much principal is paid each time
- Best for: Members who want declining payments
- Payment amounts stay constant
- Principal portion increases, interest portion decreases
- Best for: Budgeting, predictable cash flow (most common)
Payment Allocation Order
How a loan payment is split between principal, interest, and penalties: INTEREST_FIRST: Pay all interest, then principal- Ensures interest revenue is collected
- Most common in tontines
- Reduces outstanding balance faster
- Less common
- Fair for partial payments
- Good for handling arrears
Loan Term
The number of installments (payments) in the loan, not the duration in time. Example: Loan term of 12 = 12 installments (typically 12 months if monthly payments).Disbursement
The act of releasing loan funds to the borrower. Creates a journal entry debiting Loan Receivable and crediting Cash.Disbursement Date
The date the loan funds are released to the borrower. Affects when the loan appears on financial reports.First Payment Date
The date the first loan installment is due. Determines the schedule for all future installments. Best practice: Set first payment date exactly one month after disbursement for monthly loans.Loan Balance
The outstanding principal amount the borrower still owes (excluding future interest not yet accrued).Portfolio Outstanding
The total amount loaned to all members (sum of all loan balances). Displayed on the dashboard as a key metric. Also called “Loans Receivable” or “Loan Portfolio.”Arrears
Overdue amounts on loans. Includes past-due principal, interest, and penalties. Arrears accumulate when members miss payments or pay less than the scheduled installment. Example: If a member was supposed to pay 50,000 RWF on June 1 but didn’t, that 50,000 RWF is now in arrears.Delinquent Loan
A loan with any amount in arrears (at least one payment overdue). Tracked on the dashboard as a key metric.Penalty
A fee charged for late loan payments or other violations. Penalties are added to the loan balance and must be repaid along with principal and interest. Also called “late fee” or “penalty interest.” Learn more →Securities
Protections against loan default, including:- Guarantors: Other members who commit to repay if borrower defaults
- Collateral: Physical assets pledged (land, vehicles, equipment)
- Savings Lien: Member’s own savings frozen until loan repaid
Loan Modification
Changing loan installment amounts or due dates after the loan has been created. Used to restructure loans for members facing difficulties. Learn more →Loan Defaulting
Marking an uncollectible loan as DEFAULTED, which automatically attempts recovery from securities (borrower savings, guarantors, collateral) and writes off any unrecovered amount as bad debt expense. This is a last resort after all collection efforts fail. Learn more →Accounting & General Ledger
Double-Entry Accounting
An accounting system where every transaction affects at least two accounts with equal debits and credits. Ensures mathematical accuracy and provides complete audit trail. Example: Recording a 10,000 RWF deposit:- Debit Cash +10,000 (asset increases)
- Credit Member Savings +10,000 (liability increases)
Debit
An accounting entry that increases assets or expenses, or decreases liabilities or income. Appears on the left side of T-accounts. Think: “Debit = Destination of money”Credit
An accounting entry that increases liabilities or income, or decreases assets or expenses. Appears on the right side of T-accounts. Think: “Credit = Source of money”Journal Entry
A record of a financial transaction showing all debits and credits. Every operation in Agatabo (deposits, loans, payments, expenses) creates journal entries automatically. Learn more →Journal Entry Type
The category of transaction that created the journal entry. Examples:- DEPOSIT
- LOAN_DISBURSEMENT
- LOAN_PAYMENT
- EXPENSE
- DIVIDEND_DISTRIBUTION
- MANUAL (user-created)
Ledger Role
A classification of ledger accounts into categories for reporting and organization. Examples:- ASSET (Cash, Loans Receivable, Fixed Assets)
- LIABILITY (Member Savings, Reserves)
- EQUITY (Retained Earnings)
- INCOME (Interest Income, Fees)
- EXPENSE (Operating Expenses, Loan Losses)
Reconciliation
The process of matching internal records (Agatabo) with external records (bank statements) to ensure accuracy and identify discrepancies. Learn more →Manual Journal Entry
A journal entry created by an accountant (not automatically generated). Used for corrections, adjusting entries, or transactions not covered by standard operations. Caution: Manual entries bypass normal controls - use only when necessary. Learn more →Idempotency Key
A unique identifier for a transaction that prevents duplicate submissions. If you try to record the same transaction twice with the same idempotency key, Agatabo rejects the duplicate. Learn more →Financial Periods
Accounting Period
A time interval (monthly, quarterly, yearly) used for organizing financial data and generating reports. Organizations configure their period frequency in settings.Period Closing
The process of locking an accounting period to prevent further changes. Once closed, no transactions can be added, edited, or deleted for that period. Purpose: Ensures historical data integrity and enables accurate year-over-year comparisons. Learn more →Open Period
An accounting period that allows transactions to be recorded, edited, or deleted. Only the current period and future periods are open.Closed Period
An accounting period that has been locked. Transactions in closed periods are immutable - corrections must be made via adjusting entries in the current period.Period Status
The state of an accounting period:- OPEN: Transactions allowed
- CLOSED: Transactions prohibited, period locked
Bank Accounts & Cash
Bank Account
A financial account held at a bank or financial institution. Agatabo tracks all organization bank accounts to manage cash flow and reconciliation. Learn more →Cash
The organization’s available funds in bank accounts. Increases with deposits and loan payments, decreases with loan disbursements and expenses.Cash Balance
The total cash available across all bank accounts. Displayed on the dashboard as a key metric.Bank Transaction
A movement of money in a bank account (deposits, withdrawals, transfers, fees). Bank transactions are recorded in Agatabo and reconciled with bank statements.Bank Transfer
Moving money between two bank accounts (both tracked in Agatabo). Creates a debit in one account and credit in another.Expenses & Fixed Assets
Expense
Money spent on operational costs (rent, utilities, salaries, supplies). Expenses reduce cash and appear on the profit & loss statement. Learn more →Expense Category
A classification for expenses (Operating Expenses, Administrative Costs, Loan Loss Provisions, etc.). Used for budgeting and reporting.Fixed Asset
A long-term tangible asset used in operations (buildings, vehicles, furniture, equipment). Fixed assets depreciate over time. Learn more →Depreciation
The systematic allocation of a fixed asset’s cost over its useful life. Depreciation reduces the asset’s book value and appears as an expense. Example: A 10,000,000 RWF vehicle with 10-year useful life depreciates 1,000,000 RWF per year. Learn more →Reserves & Dividends
Reserve
Funds set aside for specific purposes (emergency fund, loan loss provision, future projects). Reserves are liabilities - they belong to members but are restricted from withdrawal. Learn more →Reserve Allocation
The process of moving funds from general equity into a specific reserve category. Recorded via journal entry.Dividend
A distribution of profits to members, typically based on their savings balance or shareholding. Dividends are paid from the organization’s retained earnings. Learn more →Dividend Pool
The total amount of profit available for distribution as dividends. Created by accountants after calculating net income for a period.Dividend Distribution
The act of allocating dividend pool funds to individual members. Can be paid in cash or credited to savings accounts.Reports
Balance Sheet
A financial statement showing assets, liabilities, and equity at a specific point in time. Must always balance: Assets = Liabilities + Equity. Learn more →Profit & Loss Statement
A financial statement showing income and expenses over a period of time. Shows net income (profit) or net loss. Also called “Income Statement” or “P&L.” Learn more →Cash Flow Statement
A financial statement showing cash inflows and outflows over a period of time. Categorized into operating, investing, and financing activities. Learn more →Member Statement
A report showing an individual member’s savings balance, deposits, loans, and payments over a specific period. Learn more →System & Technical
Audit Trail
A chronological record of all transactions and user actions in Agatabo. Includes user ID, timestamp, action type, and affected data. Used for compliance and troubleshooting. Learn more →Notification
An automated message sent to users via email or SMS for important events (loan disbursement, payment received, period closing, arrears alerts). Learn more →Dashboard
The main landing page showing key metrics, quick actions, and system status. Displays Total Savings, Portfolio Outstanding, Arrears, Cash Balance, and more.Currency
The monetary unit used by the organization (RWF for Rwandan Francs, USD, KES, etc.). Set at organization level and cannot be changed after setup.Timezone
The organization’s local time zone (e.g., Africa/Kigali). All timestamps in Agatabo use this timezone for consistency.Related Resources
Understanding Tontines
Learn about the tontine financial model
Permissions Matrix
Complete reference of roles and permissions
Journal Entry Types
All transaction types in Agatabo
Accounting Basics
Introduction to double-entry accounting