1. Class User Guide
  2. Discount Accrual Class
  3. Maintain Discount Accrual Class

2.4.1 Maintain Discount Accrual Class

This topic provides the systematic instructions to maintain discount accrual.

A discount accrual fee class specifies the accrual parameters for interest, charges and fees.

Before defining the attributes of a discount accrual fee class, you should assign the class a unique identifier, called the Class Code and briefly describe the class. A description would help you easily identify the class.

When building a discount accrual fee class, you define certain attributes such as:
  • Whether Discount accrual should be performed for the class.
  • The frequency at which discount accrual should be performed. This can be either Daily or Monthly. For monthly accruals, the discount accrual will be done on the last day of the month.
  • How foreclosures in respect of the contracts using the class, must be handled. You can opt for complete accruals, or refund.
  • The day count methods for each currency using the class. You can define the day count methods for both the numerator and the denominator.
Specify the User ID and Password, and login to Homepage.
  1. On the Homepage, type 'DADTFACL' in the text box, and click the next arrow.

    The ‘Trade Finance Discount Accrual Class Maintenance’ screen is displayed:
    Description of dadacrcl__cvs_main.jpg follows
    Description of the illustration dadacrcl__cvs_main.jpg

  2. On Trade Finance Discount Accrual Class Maintenance screen, specify the fields.
    For information on fields, refer to Table 2-3:

    Table 2-3 Trade Finance Discount Accrual Class Maintenance - Field Description

    Field Description
    Class Code

    Specify a unique code to identify the class.
    Description

    Specify a brief description for the class.
    Module

    Specify the module to which the class should be applicable. The adjoining option list displays
    all module codes available in the system. You can choose the appropriate one.

    Module Description

    The system displays a brief description of the chosen module.
    Accrual Preference
    Discount Accrual Required

    Check this box to indicate that discount accrual is required.
    Accrual Frequency

    If you check the box ‘Accrual Required’, you will have to select the accrual frequency from the
    adjoining drop-down list:

    • Daily
    • Weekly
    • Monthly
    • Half-Yearly
    • Annual
    Handling of Foreclosure

    Select the method of handling foreclosure from the adjoining drop-down list:

    • Complete Accrual
    • Refund
    Acquisition Type

    The Acquisition Type is determined by the cash flows of Interest, charges and fees for which 'Consider as Discount' option is checked. The drop down list comprises of the following values:

    • Par
    • Par/Discount
    • Par/Premium
    • Par/Discount/Premium
    If the incoming cash flows of all the above components are greater than outgoing cash flows considering Incoming flow as Positive (In case of Loans) then acquisition type is considered as Discount.

    If the incoming cash flows of all the above components are less than outgoing cash flows considering Incoming flow as Positive (In case of Loan) then acquisition type is considered as Premium.

    If the incoming cash flows of all the above components are equal to outgoing cash flows considering Incoming flow as Positive (In case of Loan) then acquisition type is considered as Par.
    Class Currency Preference
    Currency

    Specify the currency code. The adjoining option list displays all currency codes available in the system. You can choose the appropriate one.
    Currency Name

    The system displays the name of the currency.
    Numerator Method

    Specify the numerator method.
    Denominator Method

    Specify the denominator method.

    You can maintain multiple currency codes.

Parent topic: Discount Accrual Class