When the system converts and adjusts the capital amounts, it takes all the actual records that exist when you run the conversion into account (if there is a disbursement commitment, planned disbursements are also considered). The remaining capital is adjusted to reflect business practice, while the interest calculation capital and disbursement commitment is adjusted for technical reasons.
Since rounding differences can affect the interest calculation, the system clears the rounding differences by making a one-time adjustment to the interest calculation capital on the conversion key date.
If the loan was already fully disbursed before conversion, and rounding differences arise, the system generates an adjustment flow to set the value of the disbursement commitment back to zero.
The system also adjusts the remaining capital amount disclosed to the borrower. Any differences arising from the conversion are adjusted automatically and the corresponding postings transferred to FI.
When capital amounts are converted (interest calculation capital, disbursement commitment, remaining capital), the system adjusts for any rounding differences.
Adjustment amounts resulting from adjustment postings for the interest calculation capital and disbursement commitment are only posted in the loans subledger, and not in FI. You must set up account determination for the relevant flows (0930, 0935, 0910, 0915):
Clearing account for adjustments to capital amounts to clearing account for adjustments to capital amounts
Adjustment amounts for adjustment postings for the remaining capital are posted in FI. Account determination for flow types 0920 and 0925.
Balance sheet account to clearing account / Clearing account to balance sheet account
Generating and Posting Adjustment Flows 