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Suspend interest and charges

Interest may be suspended for specific accounts, i.e. not posted to profit and loss. The field
INT.NO.BOOKING in the account record indicates whether interest and charges calculated on
this account will be accrued to Profit and Loss and booked to a customer account as normal, or
will be suspended and not booked to Profit and Loss, or is for information only(eg Nostro
account).

If INT.NO.BOOKING is set to Suspense Interest and charges will be booked to the customer’s
account but no P&L entries will be generated, instead the amount which would have been
accrued will be stored in one of the following fields in the account record ACCR.CHG.SUSP,
ACCR.DR.SUSP, ACCR.DR2.SUSP, ACCR.CR.SUSP, ACCR.CR2.SUSP.
If INT.NO.BOOKING is set to ‘Y’ interest and charges are calculated for information only, no
entries will be passed either to Profit and Loss or to the customer’s account, e.g Nostro accounts.

During the next close of business the system has moved the interest to SP.NO.NO.SUSP. If the field AUTO.ACCRUAL or ACCT.NO.BALANCES record for the account the interest was on 50000 but has been moved to suspense.SETTLE must be used to move the suspended interest from 51000SP to 51000 during the close of business.GROUP.In the example account above the field INT. this is shown by 50000 being appended with SP.SETTLE is not set to Y then the application ACCT.SETTLE is set to Y on either the ACCOUNT.BOOKING has been set to SUSPENSE.CONDITION record for the account then the field INT. If the field AUTO.CONTRACT.BOOKING in the account record can be changed from SUSPENSE to null and the interest will be moved during the COB from 51000SP to 51000 using debit interest as an example.BOOKING in the account. NB . In the following EB. There are 2 ways in which the suspended interest/charges can be settled. The value SUSPENSE can then be removed from the field INT.

The Close of Business program EOD.g. for NOSTRO ACCOUNT records.AMOUNT fields in the ACCOUNT record and generates the appropriate entries for Profit and Loss. .ACCT.SETTLE It is used to request settlement of interest and charges. It is possible to calculate interest for information only and not accrue or apply it.SUSP. which have been suspended and not booked to Profit and Loss. e.The system will only allow SUSPENSE to be removed from INT.NO.BOOKING if all suspended interest has been cleared from the account ACCT.SUSP removes the requested amounts from the SUSPENSE.

.Detailed interest statements may be printed for specified ACCOUNT records whenever interest is applied.