Hi All,
We have the following scenario related to interest accrued.
Its an inter company loan, we have given a loan to one of our company on 01/01/2012 maturing on 31/12/2012. and the interest will be received & posted every 6 month. We need to run the accruals on every month end. In this case first accruals will be posted on 31/01/2012. We have done the necessary configuration and the system is posting the below entries
Entries:
(1) Loan given to subsidiary company
Loan a/c Dr
To Bank OUT a/c Cr
(2) Accrual as on 31/01/2012 (this entry will be reversed on first day of next month)
INTEREST ACCRUED AND DUE a/c Dr 100
To Clearing a/c 100
Now our concern is the nominal amount is due on 30/06/2012 (amount 600/-). So as per our books the system has to post the below entries for accruals which will be reversed, except the last entry.
| Date | Entry | Amount Dr | Amount Cr |
|---|---|---|---|
| 31/01/2012 | Interest accrued but not due a/c DR To Clearing a/c | 100 | 100 |
| 29/02/2012 | Interest accrued but not due a/c DR To Clearing a/c | 200 | 200 |
| 31/03/2012 | Interest accrued but not due a/c DR To Clearing a/c | 300 | 300 |
| 30/04/2012 | Interest accrued but not due a/c DR To Clearing a/c | 400 | 400 |
| 31/05/2012 | Interest accrued but not due a/c DR To Clearing a/c | 500 | 500 |
30/06/2012 (Nominal Interest is due on this date) | Interest accrued but due a/c DR To Clearing a/c | 600 | 600 |
The accrual entry which we are posting from day one has to hit the “Interest accrued but not due a/c “ and on 30/06/2012 it should
hit the “Interest accrued but due” GL.
1. As per our configuration the system is hitting “Interest accrued but due” GL in all the accruals postings.
2. Every month the system is posting the accruals amount as 100/-.It is not consolidating the amount in the next month i.e. for the month of feb
the system has to post Rs200 as accruals (Jan Rs100 + Feb Rs100).
2. Every month the system is posting the accruals amount as 100/-.It is not consolidating the amount in the next month i.e. for the month of feb
the system has to post Rs200 as accruals (Jan Rs100 + Feb Rs100).
Please let me what sort of config is issing from our side!!!
Regards,
Venkatanaga