1.7 Discount Accrual Class Maintenance

This topic describes the systematic instruction to maintain discount accrual class.

A discount accrual fee class specifies the accrual parameters for interest, charges and fees. 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 will be 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 day count methods for each currency using the class.

You can define the day count methods for both the numerator and the denominator. You can define the attributes of a discount accrual fee class in the Treasury Discount Accrual Class Maintenance screen.

1. On the Home page, enter DADTRACL in the text field and click the arrow next to the text field.
   The Treasury Discount Accrual Class Maintenance screen is displayed.

   Figure 1-11 Treasury Discount Accrual Class Maintenance

   
   Description of "Figure 1-11 Treasury Discount Accrual Class Maintenance"
2. In the Treasury Discount Accrual Class Maintenance screen, specify the fields.

   Table 1-9 Treasury Discount Accrual Class Maintenance- Field Description

   Field	Description
   Class Code	Specify a unique code to identify the class.
   Description	Specify a brief description for the class.
   Module	Specify the module to which the class should be applicable. The adjoining option list displays all module codes available in the system. You can choose the appropriate one.
   Actual Preference	Specify the details.
   Discount Accrual Required	Check this box to indicate that discount accrual is required.
   Accrual Frequency	If you check the box ‘Accrual Required’, you will have to select the accrual frequency from the adjoining drop-down list: Daily Weekly Monthly Half-Yearly Annual
   Handling of Foreclosure	Select the method of handling foreclosure from the adjoining drop-down list: Complete Accrual Refund
   Acquisition Type	The Acquisition Type is determined by the cash flows of Interest, charges and fees for which 'Consider as Discount' option is checked. The drop down list comprises of the following values: Par Par/Discount Par/Premium Par/Discount/Premium If the incoming cash flows of all the above components are greater than outgoing cash flows considering Incoming flow as Positive (In case of Loans) then acquisition type is considered as Discount. If the incoming cash flows of all the above components are less than outgoing cash flows considering Incoming flow as Positive (In case of Loan) then acquisition type is considered as Premium. If the incoming cash flows of all the above components are equal to outgoing cash flows considering Incoming flow as Positive (In case of Loan) then acquisition type is considered as Par.
   Class Currency Preference	Specify the following fields.
   Currency	Specify the currency code. The adjoining option list displays all currency codes available in the system. You can choose the appropriate one.
   Currency Name	The system displays the name of the currency.
   Numerator Method	Specify the numerator method.
   Denominator Method	Specify the denominator method. You can maintain multiple currency codes.