A.1.15 Interest Accrual
You can start or stop interest accrual on a Lease.
On the Lease Details screens, Stop Accrual box is selected in Interest and Accruals section.
To remove Stop Accrual indicator, post the start ACCURAL transaction.
Table A-30 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-31 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-32 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 |