Accruals on Capitalized Interest

[Former Member]

Hi All,

When I am executing TPM44 for capitalized interest for the first month accruals posting  correct values where we observe second month accruals posted wrongly.

Second month accruals are posted with 60days period (including first month).

Please find the below FD details.

F.V - 50,000,000.00

ROI - 8.75

Indicator for Capitalization - Tick

Start date - 02.05.2013

End Date - 02.05.2015

Frequency - 3 months

For Rollover -Capitalization.

Accrual for first month -31.05.2013

359.589,04

2nd Month Accrual -719.178,08

How to post capitalized interest accruals as normal FD Accruals.

Regards,

Krishna Reddy T

[Former Member]

Hi,

What method of accrual are you using?  If you are using a reset method, then the accrual amount posted is correct because the first month's reversal would have happened on the first date of the second month.

So in essence for the month of June, on June 1st there is a reversal for 359589 (the accrual posted on 31st May) and on the 30th June there is an accrual posting of 719178.  Hence in essence, the accrual posted to the G/L for June will be the difference between these two only. 

Regards,

Ravi

[Former Member]

Hi,

Please note that this is logically correct. As after two months you have actually accrued interest amount of 719.178,08

Warm regards,

Akhil Poddar