Balance for Interest calculation

ACCT.ACTIVITY 
This is an internal file containing details of Account Balances and Activity used to calculate interest and charges (see explanation about Value Dated Balances below). 
 
Details are held in separate records for each Account for each month in which there has been any Activity over the Account or in which the Value Dated Balance changes. 
 
The details held in this file for the calculation of interest include Value Dated Balances and total Debit and Credit Turnover for each Value Date. 
 
The details held for the calculation of charges include the total number of entries with each different Transaction Code processed during the month, and the total value of the entries with each Transaction Code. These details are held in the record for the month in which the entries are processed, regardless of the Value Dates of the entries. 
 
The Value Dated Balances are also used for the calculation of Balance Requirement charges and for determining whether a high enough Balance has been maintained for waiving charges and for calculating Credit interest to offset charges. 
 
VALUE DATED BALANCES 
 
Interest is calculated on Value Dated Balances. All entries over an Account are considered to have a Value Date, which is the date on which the entry affects the (value dated) balance for interest purposes. 
 
If no Value Date is entered in a transaction, it may be added automatically by the system, depending on rules specified in the Transaction Code table (TRANSACTION), or rules specified in the application which generated the transaction (e.g.Money Market). 
 
If no Value Date has been entered or generated in an entry, a default of the Booking Date is assumed, i.e. the entry is considered to affect the balance for interest purposes on the same day as it is processed. 
 
END OF DAY PROCESSING 
 
This file is updated during the end of day process EOD.ACCT.ACTIVITY with the details of every entry which has been generated during the day and also during the end of day Capitalisation processes, EOD.CAPITALIS.CORR and (unless next day posting is specified in the Account Accrual table) EOD.CAPITALISATION. 
 
A new Account Activity record is generated every time an entry is encountered with a Value Date or Booking Date in a month in which the Account has not previously had any entries. 
 
If an entry has a Value Date in a different month from the Booking Date, at least 2 Account Activity records are updated, one containing the Value Dated Balances for interest purposes, the other containing the numbers and amounts of transactions for charges purposes. 
 
If an entry has a Value Date earlier than entries which have previously been processed for the same Account, all subsequent Value Dated Balances are updated. This may involve updating several Account Activity records.