Define Accrual/Deferral


of accrual/deferral

When you perform an accrual/deferral, the original flow is an interest debit position. If the due date of the interest debit position falls before the interest period it relates to, and you perform an accrual/deferral run within the current interest period, the affected flow is deferred. The system determines which accounts to use via the flow type that you have entered as the offsetting flow type for the interest debit position flow type for deferral.


of the interest capitalization entries

In the sample customizing delivered with the system, there is a flow type for a purchase and a flow type for the inflow when you perform a securities account transfer. You enter the following data:

Flow type Int.cap.on key date Int.cap.upon sale
1000 8995 8996
1020 8995 8996

The following entries are valid:

FType Name FCat
1000 Purchase A
1020 Sec.acct trns:Inflow AD
8995 Int.cap.for key date EAZB
8996 Int.cap.outflow EAZS

When you execute the amortized cost function for discounted bonds, the system generates interest capitalization flows on the key date. It also generates interest capitalization flows for position outflows (sales, securities account transfers, repayments) as planned records which are then transformed into actual records when you perform period-end closing.


You must create all flow types which you enter here correctly in Define Flow Types.

It is also important that you maintain the Account Determination for the flow types.


On the initial screen Display View "Company Codes": Overview, select a company code and switch to Flow types to be accrued/deferred.

The screen headed Change View "Securities: Accrual/Deferral Flow Types": Overview appears.

To add a new flow type, choose the New Entries function. The screen headed New Entries: Details of Added Entries appears. Proceed as follows depending on whether you are entering a flow type to be accrued/deferred or a flow type for a position inflow.

    1. Defining the flow types for accrual/deferral

      a) Enter the flow type to be accrued/deferred
      b) Assign an accrual/deferral method to the flow type

      c) Enter the flow types for the reset procedure.

    2. Defining the flow types for the interest capitalization when you execute the 'Amortized Cost' function for discounted bonds (zero bonds) and when you sell them.
      a) Enter the flow type of the position inflow.
      b) Assign the accrual/deferral method to the flow type for financial mathematics.

      c) In the area headed Flow types for interest capitalization, enter the flow type for the interest capitalization on the key date and upon sale.

    3. Save your entries.