Capitalising accrued interest

Managing accrued interest is essential for accurately reflecting intercompany lending activities and ensuring proper accounting treatment. In certain jurisdictions, the ability to capitalise interest instead of settling it directly is particularly relevant.

Tip: before capitalising accrued interest in the selected relation ensure that accounting is initiated for both products in the relation. For more details, refer to the article “Automated accounting for intragroup transfers and capitalised interest”.

1. Log in to your Embat account using the following link.
2. Enter your credentials: email and password.
3. In the main menu on the left sidebar, click on In-house Banking module.
4. Access accrued interest breakdown in the Balance and Interest tabs, hovering over any row and click the information icon in the Accrued interest column.
   
   
   
   
5. View daily accrued interest. A detailed list of accrued interest for the selected relation is displayed, divided into two tabs:
   1. 1. Pending Tab: Shows interest not yet capitalised.
      2. History Tab: Displays already capitalised interest.
6. Capitalise accrued interest
   1. 1. Navigate to the Pending Tab: To capitalise interest from the date of the latest capitalisation until today, click Capitalise interest.
         1. • Note: You cannot capitalise interest for a custom period.
   2. Confirm the action. The module will record a transaction that credits and debits the appropriate products in both companies, reflecting the capitalised interest amount. The calculated daily interest rows are moved to the History tab.
   3. The debt balances are updated, and the transactions are registered in the accounting system against the interest ledger accounts configured in the in-house banking relation.
   4. The capitalised transactions are logged in the History tab of the Accounting module.

Tip: Besides the Interest breakdown pop-up, you can also initiate the capitalisation process from the following sections:

• Balance tab: Locate the relation where you wish to capitalise the accrued interest, hover over the relation row, click the three-dot icon on the right side of the page and select Capitalise interest from the context menu.
• Interest tab: Follow the same steps as in the Balance tab.
• Relation details (Balance tab): Hover over a relation in the Balance tab and click the icon in the Relation Pair A - B column to open the Relation details. In the side bar on the right, click the three-dot icon and select Capitalise interest.
• Relation details (Interest Tab): use the same steps as in the Balance tab.

If you have any further questions, please contact the Customer Experience team or submit a request through this link.