3.9 Identifying a Component as a Refinance component
While creating a loan product you have the option of indicating whether the accruals/ liquidations involving a particular component should be tracked for refinancing. If you enable the Refinancing Required option for a particular GL, you have to identify the actual component for the refinance component.
Note:
The system creates a dummy loan product for every deposit product that you maintain and vice verse. Each time you book a loan to a customer, the corresponding deposit is initiated with the following entries:| Accounting Role | Amount Tag | Dr./Cr. Indicator |
|---|---|---|
| LAIBGL_REF | PRINCIPAL | Credit |
| LAIBGL_ REF_OFF | PRINCIPAL | Debit |
Similarly, each time you book a deposit from a customer, the corresponding loan is initiated with the following entries
| Accounting Role | Amount Tag | Dr./Cr. Indicator |
|---|---|---|
| ASSETGL_REF | PRINCIPAL | Debit |
| ASSETGL_ REF_OFF | PRINCIPAL | Credit |
Note:
For details on Upfront Fee Accrual, refer to the chapter Processing Upfront Fee Accruals in this User Manual.This topic contains following sub-topics: