1.1.4 Accrual Related Details

You have to specify two aspects about interest accruals.

• Whether accruals have to be carried out
• If yes, their frequency

For a product you should specify, accruals to be carried out by clicking Interest tab in the Loans and Commitment Product Definition screen. If yes, the frequency of accruals (whether daily, monthly, quarterly, half-yearly or annual), should be specified for the product Preferences options available in the Interest Class screen. This applies to the accruable components of all contracts involving the product.

Accruals are carried out at the specified frequency by the Automatic Contract Update function. In addition, interest is accrued whenever a back-dated event (like a rate change with a value date, a payment, and so on.) is triggered as of a date beyond the date on which the last accruals were carried out.