1.1.2 Define a Discount Accrual Class

This topic describes the systematic instructions to define a discount accrual class.

A discount accrual class specifies the accrual parameters for interest and charges. You can define the attributes of a discount accrual class in the Treasury Discount Accrual Class Maintenance screen.

1. On the Homepage, Enter DADTRACL in the text box, and click the next arrow.
   The Treasury Discount Accrual Class Maintenance screen is displayed.

   Figure 1-1 Treasury Discount Accrual Class Maintenance

   
   Description of "Figure 1-1 Treasury Discount Accrual Class Maintenance"
2. Specify the fields in the Treasury Discount Accrual Class Maintenance screen.
   For information on fields refer to the below table:

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

   Field	Description
   Class Code	Specify a unique identifier for the class.
   Description	Enter a brief description for the class. A description would help you easily identify the class.
   Module	The system defaults to the Discount Accrual module to which the class is associated.
   Module Description	A brief description of the module is displayed here.
   Accrual Preference	Specify whether Discount accrual should be performed for the class.
   Discount Accrual Required	Select the Check box if discount accrual should be performed for the class.
   Accrual Frequency	Specify 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
   Acquisition Type	The Acquisition Type determines whether the initial cash flows for a C contract can be more (Premium) or less (Discount) or equal (Par) to the contract amount. 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 MM contract), the 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 MM contract), the 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 MM contract), the acquisition type is considered as Par. NOTE: The acquisition type of a contract can change from premium to par/discount or otherwise depending on the charges getting liquidated during the life cycle of the contract.
   Handling of Foreclosure	Specify how foreclosures with respect to the contracts using the class must be handled. You can opt for the completion of pending accruals, or refund. In case the ‘Acquisition Type’ is ‘Par’, there are no refunds. Only the pending accruals are completed.
   Class Currency Preferences and Day Count Method Details	You can specify the day count methods for each currency using the class. You can define the day count methods for both the Numerator and the Denominator.