Accrual Basis Accounting
Any daily interest accrual will create a set of general ledger entries. A debit will be posted to the GL placeholder: Accrued Interest1, and a credit will be posted to the GL placeholder Interest Income1. If the loan system is to be configured for Accrual Basis Accounting, each loan group should have the appropriate interest receivable account mapped to Accrued Interest1 and the appropriate revenue account mapped to Interest Income1.
For information on how to modify the Loan Group (General Ledger Setup) and the transaction codes to do your interest accrual using cash basis, see Cash Basis Accounting.