Interest Application

Whenever accrued interest is applied on an account, it means that the interest has been recognized as income in the case of loan accounts or overdrafts and as an expense for interest paid to client deposit accounts.

When interest is posted, an Interest Applied transaction is created to update the account balances.

Automatic interest posting on accounts is controlled by the Loan or Deposit Product settings, please see the relevant settings for Loan and Deposit products.

Interest can also be applied manually, as described below.

Manually Apply Interest

To manually apply interest:

1. Open the account.
2. On the right hand side of the screen, go to More > Apply Accrued Interest.
3. Confirm the date.
4. Select Apply.

As a result, one or multiple Interest applied transactions will be posted on the account.

The amount of interest applied reflects the interest accrued in the given period. The interest accrued is calculated using the product settings.

Undo Interest Applied

Interest is applied under the form of transactions. As such, to undo the interest applied, you must adjust the corresponding transaction(s).

To adjust an interest applied transaction:

1. Open the account.
2. Go to the Transactions tab.
3. Find the transaction for which you want to undo the Apply Interest operation and, on the right-hand side of the row, select Actions > Adjust.
4. Add a reason.
5. Select Adjust Interest Applied.