This topic describes the systematic instruction to define the Discount Accrual Fee Class.

1. On Homepage, type DADTFACL in the text box, and then click next arrow.
   The Trade Finance Discount Accrual Maintenance screen is displayed.

   Figure 6-1 Trade Finance Discount Accrual Maintenance

   
2. On Trade Finance Discount Accrual Maintenance screen, click New.
3. On Trade Finance Discount Accrual Maintenance screen, specify the fields, and then click Enter Query.
   For more information on the fields, refer to the below Field Description table.

   Table 6-1 Trade Finance Discount Accrual Maintenance - Field Description

   Field	Description
   Class Code	Specify a unique identifier for the class. This field is mandatory.
   Description	Enter a brief description for the class. A description would help you easily identify the class.
   Module	Specify the module to which the class is associated.
   Module Description	The system defaults the module description.
   Accrual Preference Specify the accrual preference details.
   Discount Accrual Required	Specify whether Discount accrual should be performed for the class.
   Accrual Frequency	Specify 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.
   Acquisition Type	The Acquisition Type determines whether the initial cash flows for a C contract can be more (Premium) or less (Discount) or equal (Par) to the bill amount. The ‘Acquisition Type’ is determined by the cash flows of profit, 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 bills), the 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 bills), the 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 bills), the acquisition type is considered as Par. Note: The acquisition type of a contract can change from premium to par/discount or otherwise depending on the charges getting liquidated during the life cycle of the contract.
   Handling of Foreclosure	Specify how foreclosures with respect to the contracts using the class must be handled. You can opt for the completion of pending accruals, or refund. In case the ‘Acquisition Type’ is ‘Par’, there are no refunds. Only the pending accruals are completed.

4. On Islamic Bills & Collections Product Definition screen, click Discount Accrual.
   The Discount Accrual Preference Association is displayed.

   After building discount accrual fee classes you can associate the class with finances or bills products.

   Figure 6-2 Discount Accrual Preference Association

   
5. To associate discount accrual fee class with a product, click Default From Class.
6. Select the appropriate discount accrual fee class from the list of classes.
   The attributes defined for the discount accrual fee class defaults to the product.

   You have the option to modify the attributes defined for the class, to suit the requirement of the product you are creating. Alternatively, you can choose to define the discount accrual details for the product.

   The system derives the acquisition type based on the following criteria:

   Table 6-2 Product Type

   Product Type	Inflow/Outflow	Acquisition Type
   Asset	Inflow>Outflow	Discount
   Asset	Inflow<Outflow	Premium
   Asset	Inflow=Outflow	Par

   An asset here is an IBC contract and Inflow/Outflow could pertain to the charges and discounted profit associated with a contract.

   Now, if the acquisition type derived by the system for a contract and the acquisition type of the discount accrual class linked at the product are different, system does not allow saving of a contract.