A.1.16 Interest Accrual

You can start or stop interest accrual on a LoanLine of creditLease.

On the LoanLine of creditLease Details screens, Stop Accrual box is selected in Interest and Accruals section.

Figure A-36 Interest Accrual

Description of "Figure A-36 Interest Accrual"

To remove Stop Accrual indicator, post the start ACCURAL transaction.

Table A-32 To start interest accrual for an account

Transaction	Parameters
Start Accrual	Txn Date

On successfully posting 'Start Accrual' transaction, system does the following:

• Closes 'Stop Accrual' condition and 'Stop Billing' condition if it is OPEN on the account.
• Start billing from the date of last bill that is supposed to generate (Catch-up).
• Generate separate bills and statements for each billing cycle progressively from the point where it was not generated.

Table A-33 To stop interest accrual and billing for an account

Transaction	Parameters
Stop Accrual	Txn Date
	STOP BILLING By default the value is N.

When stop accrual transactions is posted, system ensures the following:

• Suspend billing
• Revenue recognition stops and resumes after billing has resumed and from where it had stopped
• Non-accrual or re-accrual transactions are not posted to affect maturity date.
• If non-accrual transaction is posted in middle of billing cycle, the contract is flagged for non-accrual from next billing cycle.

Table A-34 System behavior during Stop Account Stop billing

Product	Accrual Type	Stop Accrual	Stop Billing	Stop TAM (outcome)	Stop Billing (outcome)
Loan/Lease	IBL	Y	Y	Y	Y
Loan/Lease	Amortized	Y	N	Y	N
Loan/Lease	Amortized	Y	Y	Y	Y