Accrued prepaid fees (month end FX rate)

Created by Erik Åkerlund, Modified on Wed, 07 Feb 2024 at 01:15 PM by Jenny Johansson

In connection to a new loan the bank sometimes charges a onetime fees (Upfront fee) for raising the Loans, and they need to be amortised - for example montlhy - over the lifetime of the Loan. 


Add accounting rules for a prepaid onetime fee

1. Choose Only Prepaid Fees under Fees in Advanced Selection in the selection of the Accounting rules.

2. Fill in the GL account 

If the one time fee should be accrued then select a BS account on line Expense P/L or B/S. If the cost should be booked on the PL with no accruals then a PL account should be selected. 


Fee connected to a loan (Up front fees)

If a fee is connected to a loan,  

  1. Add a new deal by using "Add deal"- function see below and choose Recurring Fee 
  2. Value date should be the same as the Begin date of the loan and Maturity Date of the Fee should be the same as Deals end date on the Loan. Payment date should be the date the onetime fee should be paid. 
  3. An accounting rule for the onetime fee needs to be set up. See article accounting rules how it should be set up. 
  4. Run your normal Unrealized Accounting procedure at month End.


This will now create Accrued fees in the unrealised Accounting


More on Entering Fees:

How to enter Fees (one time and recurring)


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