Ideas for the Mambu Banking Engine

Daily/ monthly penalty accrual recognition in accounting

What: Allow for daily/ end of month penalty accrual recognition in accounting, similarly as Mambu currently posts journal entries for the interest accrual recognition.

Why: From the accounting perspective, it’s the best practice and according to generally accepted accounting standards to recognise income as it’s earned. Since penalty can accrue daily and will only be applied with interest application/ with a repayment transaction - it should follow the same accoutning rules as “regular” interest and show the penalty income earned in the accounting statements at any point in time/ as of the calendar month end (depending on the approach).

  • Dorota Nosal
  • Dec 17 2018
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