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Interest Bearing Bank Accounts, No Accrual of Interest? (Doc ID 1424539.1)

Last updated on JULY 10, 2020

Applies to:

Oracle Treasury - Version 12.0.0 to 12.2 [Release 12 to 12.2]
Information in this document applies to any platform.


No Accrual of Interest of Bank Accounts Possible:
Oracle Treasury cannot support accruals of interest expense or income on a periodic basis and if the accrual will be generated upon settling the interest then the accrual entry is not at all required.

In R12, customers will need to make sure they calculate interest on the account balances, then go into XTR, Current Account Balances=> Maintain Balances, check the Settle Check box and then the interest settled JE's will be created during the Daily Journal's process.

Cash Management:
Step1: calculate interest on the account balances:
1). Create Interest Schedule
2). Attach this to Bank accounts
3). Calculate Interest in Cash Management for a bank account.

Oracle Treasury: Settle Interest

Step 2: XTR: >> Current Account Balance
Step 3: check details of the Interest Calculated / Accrued.
Step 4: Settle Interest
Step 5 Review Interest Settlement in Settlement window:
Step 6: Authorize Settlement
Step 7: Daily journal process.

Review: document on accruals : 'TechnicalPaperAccruals'.
Please check the page no 29, Heading no 6, 6.1 about the interest calculation and accruals on current account balance, where it is mentioned that interest line should be checked with 'Settle' checkbox for generating the accruals. The example given with specifying the settle interest check box as
'Unchecked' status. You can find this document 'TechnicalPaperAccruals'  in:
<Note: 954526.1> - How To Provision Total Amount Of Accrued Interest Over The Life Of The Instrument?


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