There are two types of Accrual Accounting:
1) Accrual (Upfront): If you enable this option and add entries while defining the loan product (as shown in the table below), Accrual entries are passed at the time of disbursal of the loan (to the Client or Group).
2) Accrual (Periodic): If you enable this option and add entries while defining the loan product, Accrual can be done with a specified periodicity or can be done manually. To specify the Periodicity of Accrual, follow these steps:
- Go to Admin >> System >> Scheduler Jobs to see the following window (with a list of Jobs):
- Check the check boxes beside 'Add Accrual Transactions' and 'Add Periodic Accrual Transactions' (shown in the screenshot above).
- At the bottom of the page, click on the 'Run Selected Jobs' button, followed by the 'Refresh' button.
Once the loan product is defined with Accrual Accounting (periodic), (Click Here to see Accounting Fields for Loan Product)
- Create a Loan Account for a Client/Group with the Loan Product having Accrual Accounting. (Click Here to see how to create Loan Account)
- Make a few transactions (for instance: Repayments).
- Then go to the Accounting >> Accruals. The following window will be displayed:
- Specify the date in the "Accrue Till" field.
- Finally, execute Periodic Accrual Accounting till specified date by clicking on the blue "Run Periodic Accruals" button in order to affect all the accrual accounts (for instance: Interest Receivable, Fees Receivable, etc.).
To see the entries in accrual accounts,
- Go to Accounting >> Search Journal Entries. The following window will be displayed:
- As shown in the screenshot above, select the appropriate filters and duration and click on the 'Search' button to see the accrual transactions that occurred during the specified duration.