4.3.2.1 Interest Liquidation, Interest Accrual & OD Accrual
- From Date and To Date maintained in the Details tab is considered for interest calculation and ‘From Date’ and ‘To Date’ maintained in the ‘Multi Tenor’ tab is considered for other components.
- Interest components are maintained at the product level for a Multi Tenor contract. In the interest subsystem, based on the number of splits available, different subcomponents have defaulted internally for each split with different From Date and To Date.
- Initially, interest rate maintained for a component at the product level defaults for each sub-component; however, modify or waive off the same for each split, if needed.
- Finally, the sum total of the subcomponent interest amount is computed as the interest component maintained for the product.
- If the basis amount tag for an interest component is BILL_ELG_AMT, then the margin amount is adjusted to the bill amount of all the splits, proportionally.
- Overdue interest components are split as component + Split Serial number.
- The accrual interest is calculated, and the corresponding accounting entries are posted.
- If the bill is not liquidated, then the penalty interest components are accrued. The penalty start date for each split component is computed based on the grace days on the interest end date of each split.
- View the details of the sub-components in the Interest sub-screen of the contract.
Parent topic: Process Interest for Multi Tenor Bills