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Former Member
Jan 09, 2013 at 09:00 AM

Interest accrual computation in Treasury

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We just noticed there is a problem in the interest accrual computation as currently performed by the Treasury management System.

The scenario is the following ;

-the 18th of December we got interest payment covering the period up to 12/30/2012. Running TBB1 the system posted the related cash flows plus December accrual up to 12/30.
-Accrual through TPM44 have been in a second step run the 18th & the 31st generating again postings but with wrong numbers

Bottom line is that accruals at end of year on 12/31/2012 for that deal as per posting are $ 12,706.25 instead of 508.25, which is not correct.

Assumption is that could ‘ve happened every time interest cash flows ‘ve been posted and accrual portion booked when running TBB1.

All the details are here attached.


12/18/2012
TBB1 -95,831.02 Interest Payment
TBB1 -83,353.00 Interest Payment
TBB1 15,247.50 December Accruals until 12/30/2012 (4500000*0.04066*(30/360))

12/18/2012
TPM44 6,099.00 December Accruals corresponding to 12 days(4500000*0.04066*(12/360))

12/31/2012
TPM44 6,607.25 December Accruals corresponding to 13 days (4500000*0.04066*(13/360)

but sould be
12/31/2012
TPM44 508.25 one day accrual (4500000*0.04066*(1/360) )

Please help me to resolve this issue