There are many discrete time periods for which P&I must be calculated:
Every date for which a credit financial transaction exists (because the calculations are based on an outstanding balance, which is affected by each credit).
Any effective dated change in the P&I Control linked to the obligation
Any accrual day of the month. This is necessary if you have a monthly charge that should accrue on a given day of the month and the charge includes other charges in its calculation basis. For example, if penalty accrues on the first day of the month and includes interest in its calculation basis, you must stop and calculate interest and then the penalty on the accrual day of the month so that your calculation basis is accurate.
Effective dates of any active waivers. If any assessments for the obligation have a waiver that is effective dated, the system should stop and calculated up to that date and then after that date for the waived amount to be accurate.
More… Your implementation may identify other events in the system that affect P&I calculations. For example, if a bankruptcy is logged in the system as a case, P&I should be calculated up to the bankruptcy start date and then skipped until the bankruptcy end date
The base product P&I calculation algorithm relies on P&I pre-processing algorithms to build this list of dates. Once the list is built, the P&I calculation algorithm applies P&I rules for each time period.
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