6.2 Defining a Discount Accrual Fee class

A discount accrual fee class specifies the accrual parameters for interest, charges and fees.

You can define the attributes of a discount accrual fee class in the Discount Accrual Preference Class Maintenance screen.

Specify the User ID and Password, and login to Homepage.

1. On the homepage, type OLDACRCL and click next arrow.
   The Discount Accrual Maintenance screen is displayed.

   Figure 6-1 Discount Accrual Maintenance

   
   

   
   Description of "Figure 6-1 Discount Accrual Maintenance"

   
   
2. Before defining the attributes of a discount accrual fee class, you should assign the class a unique identifier, called the Class Code and briefly describe the class. A description would help you easily identify the class.
   When building a discount accrual fee class, you define certain attributes such as:

   • Whether Discount accrual should be performed for the class.
   • The frequency at which discount accrual should be performed. This can be either Daily or Monthly. For monthly accruals, the discount accrual is done on the last day of the month.
   • How foreclosures in respect of the contracts using the class, must be handled. You can opt for complete accruals, or refund.
   • The acquisition type for the class. You can specify any of the following options:
     • Par
     • Par/Discount
     • Par/Premium
     • Par/Discount/Premium.
   • The day count methods for each currency using the class. You can define the day count methods for both the numerator and the denominator.
   This topic contains following sub-topics:

• Associating Discount Accrual Components to Products