[jira] [Commented] (FINERACT-688) Periodic Accrual accounting: Accrue fees when paid
[ https://issues.apache.org/jira/browse/FINERACT-688?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel=16812412#comment-16812412 ] Mexina Daniel commented on FINERACT-688: Hello [~sapana] Thank you for the clarification, i didn't know if the charges were treated differently. > Periodic Accrual accounting: Accrue fees when paid > -- > > Key: FINERACT-688 > URL: https://issues.apache.org/jira/browse/FINERACT-688 > Project: Apache Fineract > Issue Type: Improvement > Components: Loan >Affects Versions: 1.1.0 >Reporter: sapana >Priority: Major > > As per periodic accrual accounting method, charges are accrued when they > become due. Ideally, as per standard industry practice, charges should accrue > when borrower actually pays them, not prior to that. -- This message was sent by Atlassian JIRA (v7.6.3#76005)
[jira] [Commented] (FINERACT-688) Periodic Accrual accounting: Accrue fees when paid
[ https://issues.apache.org/jira/browse/FINERACT-688?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel=16812398#comment-16812398 ] sapana commented on FINERACT-688: - Hi [~mexina] The difference is in treating charges differently than principal and interest. As per standard industry practice, in the accrual accounting based method 1. principal and interest would accrue the day it becomes due - similar to how it happens in Fineract with accrual accounting method 2. but any charges (service fee/ penalty etc) would accrue only when user repays, not on the day it becomes due. So a monthly recurring service charge should accrue not on the scheduled date but when the repayment happens. Hope this clarifies, let me know if I need to elaborate on anything specifically. > Periodic Accrual accounting: Accrue fees when paid > -- > > Key: FINERACT-688 > URL: https://issues.apache.org/jira/browse/FINERACT-688 > Project: Apache Fineract > Issue Type: Improvement > Components: Loan >Affects Versions: 1.1.0 >Reporter: sapana >Priority: Major > > As per periodic accrual accounting method, charges are accrued when they > become due. Ideally, as per standard industry practice, charges should accrue > when borrower actually pays them, not prior to that. -- This message was sent by Atlassian JIRA (v7.6.3#76005)
[jira] [Commented] (FINERACT-688) Periodic Accrual accounting: Accrue fees when paid
[ https://issues.apache.org/jira/browse/FINERACT-688?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel=16812369#comment-16812369 ] Mexina Daniel commented on FINERACT-688: Hello [~sapana] On the description, you said "_as per standard industry practice, charges should accrue when borrower actually pays them, not prior to that._" What is the difference between the Cash accounting and Accrue accounting? > Periodic Accrual accounting: Accrue fees when paid > -- > > Key: FINERACT-688 > URL: https://issues.apache.org/jira/browse/FINERACT-688 > Project: Apache Fineract > Issue Type: Improvement > Components: Loan >Affects Versions: 1.1.0 >Reporter: sapana >Priority: Major > > As per periodic accrual accounting method, charges are accrued when they > become due. Ideally, as per standard industry practice, charges should accrue > when borrower actually pays them, not prior to that. -- This message was sent by Atlassian JIRA (v7.6.3#76005)
