Amortizing or Accreting Transactions

When you select the Amortizing or Accreting option, the behavior of the Transaction Detail panel changes.

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.

An administrator can control whether users are able to enter amortizing or accreting transactions manually. This is controlled by an Enable Amortization/Accretion checkbox in Formats.