Suspend interest and charges

Interest may be suspended for specific accounts, i.e. not posted to profit and loss. The field

INT.NO.BOOKING in the account record indicates whether interest and charges calculated on

this account will be accrued to Profit and Loss and booked to a customer account as normal, or

will be suspended and not booked to Profit and Loss, or is for information only(eg Nostro

account).

If INT.NO.BOOKING is set to Suspense Interest and charges will be booked to the customer’s

account but no P&L entries will be generated, instead the amount which would have been

accrued will be stored in one of the following fields in the account record ACCR.CHG.SUSP,

ACCR.DR.SUSP, ACCR.DR2.SUSP, ACCR.CR.SUSP, ACCR.CR2.SUSP.

If INT.NO.BOOKING is set to ‘Y’ interest and charges are calculated for information only, no

entries will be passed either to Profit and Loss or to the customer’s account, e.g Nostro accounts.

In the example account above the field INT.NO.BOOKING has been set to SUSPENSE. During

the next close of business the system has moved the interest to SP. In the following

EB.CONTRACT.BALANCES record for the account the interest was on 50000 but has been

moved to suspense, this is shown by 50000 being appended with SP.

There are 2 ways in which the suspended interest/charges can be settled.

If the field AUTO.SETTLE is set to Y on either the ACCOUNT.ACCRUAL or

ACCT.GROUP.CONDITION record for the account then the field INT.NO.BOOKING in the

account record can be changed from SUSPENSE to null and the interest will be moved during

the COB from 51000SP to 51000 using debit interest as an example.

If the field AUTO.SETTLE is not set to Y then the application ACCT.SUSP.SETTLE must be

used to move the suspended interest from 51000SP to 51000 during the close of business. The

value SUSPENSE can then be removed from the field INT.NO.BOOKING in the account. NB

The system will only allow SUSPENSE to be removed from INT.NO.BOOKING if all

suspended interest has been cleared from the account

ACCT.SUSP.SETTLE

It is used to request settlement of interest and charges, which have been suspended and not

booked to Profit and Loss. The Close of Business program EOD.ACCT.SUSP removes the

requested amounts from the SUSPENSE.AMOUNT fields in the ACCOUNT record and

generates the appropriate entries for Profit and Loss.

It is possible to calculate interest for information only and not accrue or apply it, e.g. for

NOSTRO ACCOUNT records.

Detailed interest statements may be printed for specified ACCOUNT records whenever interest is

applied.