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Accrue and settle interest, fees and loan principal

Use this procedure where loan/deposit accrual and scheduled payment documents are available for the company.

Use an active authorized contract and schedule. Review already recorded accruals/payments before filling a new period.

Start at Open loan/deposit accruals and scheduled payment processing if financial instruments are available.

Procedure​

  1. Create an accrual document for the intended period, company and business operation. Use the schedule fill action for a limited contract/partner scope.
  2. Review interest/commission amounts and their approved expense/income analytics. Compare the period with the schedule and existing accruals to avoid duplication.
  3. Post reviewed accruals. Generate payment requests from schedule processing for principal, interest or fees due, selecting the intended amount type.
  4. Approve requests and create the bank/cash payments using the contract’s accounts and cash-flow items. Reconcile actual bank execution separately.
  5. For an incoming loan/deposit repayment, select its actual receipt operation. Split principal and interest into separate breakdown rows with their own cash-flow items.
  6. Update authorized schedule changes and run financial-instrument turnover and plan-fact reports by contract and amount type. Investigate residual principal or interest.

Check the result​

Accrual, payment and closing liability reconcile by principal/interest/fee and contract currency.

If the result differs​

Accrual repeats: compare period and existing documents before posting again. Liability does not clear: inspect contract, amount type and payment allocation.