G.3.8 Trading of Account with Amortized Balances

While trading an account with Amortized Balances, a carry-forward option from source account to target account is supported by posting 'Amortize Balance Replacement' non-monetary transaction. However, this transaction supports only SOD (Sum of Digits) Amortization method and is not allowed to post on account with 'Pending' status.

While posting 'Amortize Balance Replacement' non-monetary transaction, you can specify the transaction date, Amount and select the Balance Txn from the list. The details are populated based on values maintained in AMORTIZE_TXN_TYPE_CD lookup code.

On successful posting of transaction, system replaces the 'Amount' that has to be amortized for the selected balance on new account. This transaction also reverses the amortized entries (if any) posted for that balance and generate entries from the date of contract based on new balance on account.