Amortizing or Accreting Transactions

This section describes the behavior of the Transaction Detail panel when the Amortizing or Accreting option is selected.

Certain general ledger accounts contain transactions where the value of the transaction changes from one period to the next. The transaction value may decrease (amortizing transaction) or it may increase (accreting transaction). You may need to add these transactions one time and then as the transactions are copied from the prior reconciliation into the current reconciliation, the transaction value changes according to the amortization schedule. This option facilitates reconciliation preparation because it helps automate the verification of entries originating in the general ledger.

How the value is calculated from one period to the next depends on the amortization method.

Accreting transactions work similar to amortizing transactions. However, the Ending Amount for accreting transactions starts at 0.00 and increases each period by the Monthly Amortization amount.