6.2.3.2 Specify the Status Change Details for Discount Accrual
It would help if you defined the manner in which Discount Accrual is processed in the
event of status changes. Maintain the following details as part of status maintenance
for bills:
- Whether Discount Accruals should be stopped or reversed.
- The transfer GLs for Discount Accrual
Specify the following roles as part of the transfer GLs
| Accounting Role | Description |
|---|---|
| EIMDISCRIA | Effective Interest Based Discount To Be Accrued |
| EIMDISCINC | Effective Interest Based Discount Accrued Till Date |
| EIMPREMPIA | EIM Premium Paid In Advance |
| EIMPREMEXP | EIM Premium Expense |
| EIMINTADJREC | EIM Interest Adjustment Receivable |
To recall, at the BC product level, you maintain preferences about status change
processing through the Bills – User Defined Status Maintenance screen (which you invoke
by clicking Status button in the Bills and Collections – Product Definition screen).
During the contract status change processing, the following are supported by the system
based on the preferences maintained:
- All Discount Accrual accounting roles are made available for transfer.
- The balances transferred are:
- Premium TBA to Premium Accrued
- Discount TBA to Discount Accrued
The setting of the Stop Accrual flag stops the Discount Accrual also. This indicates that the YACR event will not pass any accounting entries.
The setting of Reverse Accrual flag reverses the following balances:
- Premium Accrued
- Discount Accrued
Note:
For more information, refer to the Products User Manual, chapter Product Definition section Aging Analysis for a Product.
Parent topic: Associate Discount Accrual Components to Products