In this session we are
looking at Interest Account Groups. Interest Account Groups
are parameters that the System will use to decide which Account or Accounts
in the Ledger will also be Updated with Interest Paid or Received, when
Interest is calculated on a Loan. |
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The Group Code is of
free design. So any Code can be used
to differentiate one Interest Contra Group from the next one. We also give it a name
and then of course we state the Ledger Account that will be used when this
Group Code is encountered on a Loan. |
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There can be just a few
or there can be many of these Interest Account Groups. Here we are looking at
the Loan Template and as we can see, we have here the differentiation between
Interest Received and Interest Paid. So here on the Interest
on Dt Balances on the Loan, for this Template, we are using this particular
Account Group for Interest Received, whereas for the Credit Interest or
Interest Paid, we use a different Group. |
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Now what we see on the
Loan Template is simply an indication of what is going to happen when we Open
or Establish a New Loan, using this particular Template. We can of course also
Establish a Loan without using a Template and in that case we will be
specifying the Interest Account parameters directly on the Loan. |