1.1.3 Associating Discount Accrual Components to Products

This topic describes the systematic instructions to associate discount accrual components to products.

After building discount accrual classes you can associate the class with loans or contract products.

1. Click Discount Accrual in the Product Definition screen (For example, Money Market Product Definition screen - MMDPRMNT).
   The Discount Accrual Preference Association screen is displayed.

   Figure 1-2 Discount Accrual Preference Association

   Figure 1-3 Discount Accrual Preference Association

   
   Description of "Figure 1-3 Discount Accrual Preference Association"
2. To associate discount accrual class with a product, click Default From Class button in the Discount Accrual Preference Association screen. Select the appropriate discount accrual class from the list of classes.
   The attributes defined for the discount accrual class defaults to the product. You have the option to modify the attributes defined for the class, to suit the requirement of the product you are creating. Alternatively, you can choose to define the discount accrual details for the product.
   The system derives the acquisition type based on the following criteria:

   Table 1-2 Treasury Discount Accrual Class Maintenance - Field Description

   Product Type	Inflow / Outflow	Acquisition Type
   Asset	Inflow > Outflow	Discount
   Asset	Inflow < Outflow	Premium
   Asset	Inflow = Outflow	Par

   An asset here is a contract (Money Market or Security Repo) and Inflow/Outflow could pertain to the charges and discounted interest associated with a contract. Now, if the acquisition type derived by the system for a contract and the acquisition type of the discount accrual class linked at the product are different, system does not allow saving of a contract.

• Events and Accounting Entries for Discount Accrual
  This topic describes the events and accounting entries for discount accrual.
• Specifying Status Change Details for Discount Accrual
  This topic describes in which manner the discount accrual is processed in the event of status changes.
• Batch Processing for Discount Accrual
  This topic describes the batch processing for Discount Accrual.