How to generate upfront AA interest for

Loan

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 How-To Document-TSR-234235

Table of Contents

1. How to Title...........................................................................................................................................
2. Detailed steps.......................................................................................................................................
3. Meta Data Track...................................................................................................................................

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Document History

Author Version Date

Gnana Nivetha S 1.0 10 Feb 22

Comments:

Reviewed by Surendar

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1. How to Title
How to generate upfront AA interest for AA loan.

2. Detailed steps
2.1 OBJECTIVE :

How to generate Upfront AA interest for AA loan

2.2 DESCRIPTION :
In order to book daily basis interest in ACCPRINCIPALINT from the Tot
Due Amt(Interest Accruals) .
Hence we are providing an AA.PRD.DES.INTEREST and
AA.PRD.DES.PAYMENT.SCHEDULE configuration to accrue interest on
daily basis.
Below are the snaps for the generation of Upfront AA interest for loan.
Configuration required:
i) AA.PRD.DES.INTEREST>ACCOUNTING.MODE=ADVANCE

ii) AA.PRD.DES.PAYMENT.SCHEDULE>
Payment type : INTEREST.ADVANCE
Start.Date : R_MATURITY (If its One time schedule)
Payment method : DUE
Test case:
In Interest condition define accounting mode as Advance

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In Payment.Schedule condition the start date should be set to R_MATURITY

Before COB, the entire accrued interest gets calculated.

Before COB, Due amount updated at upfront.

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After COB, it gets split up on daily basis and remaining period interest gets accrued
in AA.INTEREST.ACCRUALS.

After COB, it is accrued in daily basis.

Here the daily basis interest gets accrued.

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Meta Data Track

Description of document * How to generate Upfront AA interest for loan

Product * Transact

From T24 Release * R21

To T24 Release *
If the functionality is relevant till __
R9, choose the value ‘Current’

Content Classification

Bank Unit * None

TAG 1 *(keyword) Upfront interest Enter relevant tag, if not found in the
drop-down list.

TAG 2(keyword) Upfront AA Bill Enter relevant tag, if not found in the
drop-down list.

TAG 3(keyword) Advance Interest Bill Enter relevant tag, if not found in the
drop-down list.

Document Administrative Details

Owner: Gnana Nivetha S Email ID: gnana.nivetha@temenos.com

Approver: Surendar Email ID: surendarbabun@temenos.com

Expiry Date: NA JIRA Reference: TSR - 234235

3. Meta Data Track

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