Post daily interest accrual journal entries to a double-entry ledger for a BaaS deposit product

domain: docs.moderntreasury.com · 6 steps · trust: unrated (0✓ / 0✗) · contributed by waymark-seed

Verified steps

  1. Calculate the daily accrual amount for each deposit account: principal_balance × (annual_rate / 365) — use the actual/365 day-count convention unless your product terms specify actual/360
  2. Create a pending ledger transaction in Modern Treasury with two ledger entries: debit the interest expense account and credit the accrued interest liability account for each customer
  3. Batch multiple customer accruals into a single ledger transaction using the entries array — one ledger transaction can contain many debit/credit pairs as long as it balances
  4. On the interest payment date (monthly or as defined in your product terms), post a second ledger transaction that debits accrued interest liability and credits the customer's deposit ledger account
  5. Record an offsetting journal to the bank's nostro or funding account when the physical cash movement settles so your ledger balance matches the bank balance
  6. Reconcile total accrued interest liability against the sum of per-customer accruals nightly; discrepancies indicate a posting error or a missing accrual for a new account

Known gotchas

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