There are 17 steps to the accrual process.  These are done on each loan:

  1. Pending Transactions scheduled for the current accrual date are posted as payments if the loan is set to beginning of day accruals.
  2. Daily Trial Balance Entries are created for the loan if it is set to Beginning of Day Accruals, as the loan accrued today’s accrual during last night’s processing run.
  3. Pending Transactions scheduled for the current accrual date are posted as payments if the loan is set to end of day accruals.
  4. Impound payments are processed.
  5. The system checks the loan's list of interest steps, variable rate information, and base rate schedules, and executes a rate change if one is called for.
  6. The system checks the loan's list of recurring transactions and executes any events that are scheduled for the current date if the recurring transaction is flagged to occur “Before Accrual.”
  7. If the Next Billing Date for the loan is the current accrual date, the next payment is billed and the projection for the following payment calculated.
  8. If there is a custom payment schedule, it is checked to see if any special billings are scheduled for this day.
  9. If the Next Statement Date for the loan is the current accrual date, a loan statement is sent to the print queue.
  10. The list of past due payments on the loan is checked against the loan's late fee schedule to see if any past due events have been triggered.
  11. Interest is compounded on loans with a compound interest rate if the current accrual date is the scheduled date of compounding.
  12. If a promise to pay exists with an expiration date on the current accrual date, and the promise has not been satisfied, the promise is flagged as broken.
  13. One day's interest is accrued on the loan. If the loan is set to End of Day Accruals, today’s interest is accrued. If the loan is set to Beginning of Day Accruals, tomorrow’s interest is accrued.
  14. The loan's statistics are updated.
  15. The system checks the loan's list of recurring transactions and executes any events that are scheduled for the current date if the recurring transaction is flagged to occur “End of Accrual.”
  16. Amortize fees are processed if scheduled to do so on the current accrual date.
  17. Daily Trial Balance entries are created for the loan if it is set to End of Day Accruals.