Capitalize interest

Created by Erik Åkerlund, Modified on Wed, 07 Feb 2024 at 11:37 AM by Marianne Rydin

Front Office > Modify


Capitalization of interest on Loans are done in the "Modify Transactions" view (Modify Widget)



1. Search the loans for which you would like to capitalize the interest. The Capitalization can be done for several Loans at once, for example all internal loans with same payment dates - all according to your needs and your selections. Note that if you mirror internal Deals, you should only capitalize the interest on the original deal, not the mirrored deal as the capitalization done on the original deal will automatically be mirrored to the Mirror deal. Enter your search criteria in the Selection and press search. See below example.


Your search result will be found if you scroll down, or if you click on the small "arrow" next to the Clear button.




2. Click the check box for loans to Capitalize interest on. Uncheck if some loans shall not be capitalized.


3. Click the three dots and choose "Capitalize Interest".




4. The selected Loans will now have a capital increase corresponding to the interest payment, and the result of the capitalization is found in the 'Transactions' tab in the deal registration window as a "Capital increase". See below example




Accounting wise the Interest Income or Expense will be booked as Realized, and the opposite booking will be an increase of the loan amount, nothing is booked to the Cash account. If interest is capitalized on the last day of the month there will not be any accrued interest booked as unrealized.




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