Debit Interest & Charge

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12 years 5 months ago #10211 by durai611
Debit Interest & Charge was created by durai611
Hi all,

During the capitalisation date of debit interest & charge, if there is no funds available in the respective account then what system should do?
Should it allow to overdraft from the account or wait until the account has sufficient required balance.

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12 years 5 months ago #10217 by jpb
Replied by jpb on topic Re: Debit Interest & Charge
I don't get your point, but what T24 does is posting to the account without caring for the balance. Only way to possibly get around this is using the way via SUSPENCE...

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12 years 5 months ago #10219 by durai611
Replied by durai611 on topic Re: Debit Interest & Charge
Dear jpb,

I need to know whether T24 is considering the current account balance before posting IC entries. What you said is correct. System is not considering the balance as of now.

I have checked with an IC.CHARGE set up for a savings account with NIL balance. After capitalization COB, an unauthorized overdraft entry is raised against the account for that charge amount. Will banks accept for this, since it’s a doubtful debt.

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12 years 5 months ago #10225 by jpb
Replied by jpb on topic Re: Debit Interest & Charge
What will be the alternative ?
Suppress the posting to the account ?
Keep booking on hold/inau as a FT / DC ??

A fee/interest is not a doubtful dept. from my point of view but putting a savings accout to minus might be. But then it's up to the account manager to clarify ...

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12 years 5 months ago - 12 years 5 months ago #10226 by durai611
Replied by durai611 on topic Re: Debit Interest & Charge
What you said of SUSPENSE is one alternative. But mostly for savings accounts there should be a minimum balance maintained. Thanks for your valuable inputs :)
Last edit: 12 years 5 months ago by durai611.

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