For IOF component the below formulae with the conditions needs to be defined if IOF payment type is IOF Advance payment at product level. It is applicable to Bearing Normal / Bearing Amortized type of loans. Finally add the current disbursement tax amount which is calculated based on the additional rate by using the below formulae. For discounted/true discounted loans IOF needs to be calculated based on present value, that is, Principal Schedule Amount – Interest Amount.

The formulae for discounted loans need to be defined as below: Finally add the current disbursement tax amount which is calculated based on the additional rate by using the below formulae.

• The IOF is collected from the customer and credited into the IOF GL.
• IOF is not re-calculated during any payment/prepayment of the loan.
• Following accounting entries are to be maintained for DSBR event:

  Dr/Cr	Accounting Role	Amount Tag	Amount
  Dr	CUSTOMER GL	<Component>_LIQD	<IOF Amount calculated-IOF already collected>
  Cr	IOF_PAY_ACC	<Component>_LIQD	<IOF Amount calculated-IOF already collected >

• ** PRINCIPAL_SCHAMT - fetches the principal schedule amount schedule wise for Normal/Amortized type of loans.
• **SCH_DAYS is calculated as calendar days between loan value date and schedule end date for each schedule.
• **MAIN_INT_CURVAL – Interest accrual for discounted/true discounted loans.
• **IOF_DLY_RATE – IOF rate maintained in tax rule maintenance
• **ADDL_RATE – IOF additional rate maintained in tax rule maintenance.
• **MAX_IOF_RATE – maximum IOF rate maintained in tax rule maintenance