1.8.4 Specify Accrual Related Details

You have to specify two aspects about interest accruals:

• Whether accruals have to be carried out
• If yes, their frequency

For a product you should specify, through the Product ICCB Details screen, whether accruals have to be carried out. If yes, the frequency of accruals (whether daily, monthly, quarterly, half-yearly or annual) should be specified for the product through the Product Preferences screen. This will apply to the accruable components of all contracts involving the product.

Accruals will be carried out at the specified frequency by the Automatic Contract Update function during the End of Day processes. In addition, interest will be accrued whenever a backdated event (like a rate change with a Value Date, a payment, etc.) is triggered as of a date beyond the date on which the last accruals were carried out.