Loan Accruals

Related Topics

Accrued interest receivable is based on the same principle as dividend expense accruals, except the entries are the opposite. The Accrued Interest Receivable Report 190 gives the interest income amount to be accrued, and is produced each month end. The credit union has the option to receive this report as an online short report, the Accrued Interest Receivable Report 195.

To post:
Debit Asset 751-000
Credit Income 111-000

To reverse:
Debit Income 111-000
Credit Asset 751-000

Year-End Loan Accrual Moves

Complete a journal voucher entry for the adjusted accrued interest figure on the 190 or 195s Report. Then, run the 290 and 300 Reports to reflect the move. After you have received the 290 and 300 Reports, you will complete the journal voucher entry to reverse. This will start January with a zero balance. Then, you can run the 308 Report to run Auto Close.

Loan Accruals

Things that could cause the accrual balance to be less than the previous month:

  • The interest paid date located on the Loans - Interest tab was in the past and was changed to a current date.
  • A large loan paid off.
  • A loan charge off was performed instead of changing the loan type.
  • There was an amount in the Finance Charges Calculated But Not Collected (FCCBNC) field on the Loans - Interest tab that was zeroed out or removed.
  • There was a rate change where the interest rate was lowered.
  • A payroll posted at the end of the month with an effective date of the first of the month.
  • Consider if there are fewer days this month that last month.

Things that could cause the accrual balance to be more than the previous month:

  • Several new loans were booked.
  • A large amount was added to the Finance Charges Calculated But Not Collected (FCCBNC) field on the Loans - Interest tab.
  • There was a rate change that increased the rate.
  • A payroll did not post at the end of the month, but posted on the first day of the month.
  • The interest paid date on the Loans - Interest tab was a current date and was changed to a past date.
  • Consider if there are more days this month than last month.

The 191 Report can be very helpful when researching accruals. This report will give you a break down, member by member how the system calculated the projected interest.