Example: Compounding Interest

You can set up only one detail line associated with compounding interest in a fee and interest table. To set up compounded interest, you must:

• Leave the Retro Code field blank because no grace period exists.

• Enter a bill code for an adjustment in the BCd/AdjR field. During the generation, therefore, the system updates the AR Account Ledger table as an adjustment.

• Enter 1 in the Cmp Flg field.

The adjustment reason, plus the prefix RA, comprise the related AAI RAIN.