6.3 Specify Status Change Details for Discount Accrual
You need to define the manner in which discount accrual is processed in the event of
status changes. You must 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
You can specify the following roles as part of the transfer GLs:
Table 6-10 Amount Tag - Description
| Amount Tag | Description |
|---|---|
| EIMDISCRIA | Effective Profit Based Discount To Be Accrued |
| EIMDISCINC | Effective Profit Based Discount Accrued Till Date |
| EIMPREMPIA | EIM Premium Paid In Advance |
| EIMPREMEXP | EIM Premium Expense |
| EIMINTADJREC | EIM Profit Adjustment Receivable |
| EIMINTADJINC | EIM Profit Adjustment Income |
To recall, at the IB product level, you maintain preferences pertaining to status change
processing through the Islamic Bills & Collections Product
Definition screen (which you invoke by clicking the
Status button in the ‘Islamic 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 as follows:
- Premium TBA to Premium Accrued
- Discount TBA to Discount Accrued
- Setting of the ‘Stop Accrual’ flag stops the discount accrual also. This indicates that the YACR event will not be pass any accounting entries
- Setting of Reverse Accrual flag reverses the following balances:
- Premium Accrued
- Discount Accrued
For more information, refer to the sub-topic Aging Analysis for a Product in the chapter titled Product Definition in the Products User Manual.
Parent topic: Define Discount Accrual Classes