1.1.3.2 Specifying Status Change Details for Discount Accrual

This topic describes in which manner the discount accrual is processed in the event of status changes.

You must maintain the following details as part of status maintenance for contracts:

• Whether discount accruals should be stopped or reversed
• The transfer GLs for discount accrual

Table 1-10 Accounting Roles

Accounting Role	Description
EIMDISCRIA	Effective Interest Based Discount To Be Accrued
EIMDISCINC	Effective Interest Based Discount Accrued Till Date
EIMPREMPIA	EIM Premium Paid In Advance
EIMPREMEXP	EIM Premium Expense
EIMINTADJREC	EIM Interest Adjustment Receivable
EIMINTADJINC	EIM Interest Adjustment Income

To recall, at the product level, you maintain preferences pertaining to status change processing through the Status screen (which you invoke by clicking ‘Status’ button in the Product Definition screen of Money Market or Security Repo). During the contract status change processing, the following are supported by the system based on the preferences maintained:

• All discount accrual accounting roles are made available for transfer
• The balances transferred are
  • Premium TBA to Premium Accrued
  • Discount TBA to Discount Accrued
• Setting of the ‘Stop Accrual’ flag stops the discount accrual also. This indicates that the YACR event will not be pass any accounting entries.
• Setting of ‘Reverse Accrual’ flag reverses the following balances:
  • Premium Accrued
  • Discount Accrued

:

For more information, refer to the section ‘Aging Analysis for a Product’ in the chapter titled ‘Product Definition’ in the Products User Manual.