G.3.6 Accrued Interest

When TRADE transaction is posted, system considers the 'Accrued Interest' i.e. the 'Accrued Interest Minus' value is also posted on account. This ensures that double accounting does not happen when new account is created.

The accrued interest is calculated based on the transaction parameter 'Post Accrued Interest' available in 'Trade' transaction.

• If the value of the transaction parameter is 'N', there are no changes to existing trade transaction.
• If the value of the transaction parameter is 'Y', system does the following actions:
  • Posts 'Accrued Interest' for interest balance.
  • Posts 'Interest Adjustment Minus' transaction with 'Outstanding Interest Balance'.

    For example, if Initial Interest Bal = 200$, Accrued Interest Posted to Interest Bal = 20$; Step 2 will post adjustment txn for 220$.