Account Interest Profile Transaction Details
Purpose
Interest profiles may contain any number of interest profile transaction lines. Each transaction line may be associated with a base rate. The combination of a base rate and an interest profile transaction line margin rate creates the interest rate(s) that will be used on accounts associated with that interest profile.
Where there is no base rate associated with an interest profile transaction line, the margin rate on the interest profile transaction line is the interest rate.
Interest profile transaction lines are value dated. When a new line is added, a rate change transaction will be posted to every account associated with that profile so the latest rate is used when calculating interest on the account. The rate change transaction posted to the account is value dated the date of the new interest profile transaction line.
Prerequisites
The Interest Profile must have already been established
Access
- Accounts | Edit/View Account Interest Profile Details |
- Accounts | Edit/View Account Interest Profile Details | Select required profile |
Dialog Details
Details Specific Fields
Field | Explanation |
Date | Enter the date the new rate should be effective from. i.e. If the new interest rate should be applied from 1 April, then the date entered should be 31st March. |
| Base Rate | If required [F2] and select the Interest Base Rate to be applied to the interest rate. |
Posted | Indicates whether the Interest Transaction has been posted. If the date of the rate change is earlier than today, the rate change will post on If the rate is dated in the future, this will not post automatically, Future dated rate changes can only be posted using the Variable Loan Create and Maintain Pending Rate Changes menu item. |
Days Grace | This field will only display if the Interest Profile Calculation Method is ‘Grace Period’. Allows the number of days grace to be specified. |
Debit (Lending) Accounts | |
Up to (Positive Amount) | Enter the amount A rate margin can be entered as a single rate, or a number of break levels may be applied. When entering any values the amount entered MUST be greater than the maximum loan account balance expected or interest calculations will be incorrect. Single rate: If a single rate is to be applied, he Up To amount should be entered as an extensive figure such as 99999999.99 (99 million). Break Levels: A number of break levels may be entered for each interest profile transaction, enabling the finance company to charge differing rate margins depending on the balance of the account. The Debit Account breaks must be entered in ascending order. The rate will apply to accounts with a balance up to and including the corresponding amount. |
Rate Margin | Enter the appropriate rate of interest that should apply to each ‘Up To’ Amount |
Credit (Investment) Accounts | |
Down to (Negative Amount) | A rate margin can be entered as a single rate, or a number of break levels may be applied. When entering any values the amount entered MUST be greater than the maximum investment account balance expected or interest calculations will be incorrect. Single rate: If a single rate is to be applied, then enter a negative rate margin for borrowing (credit) accounts. The Up To / Down To amount should be entered as an extensive figure such as -99999999.99 (99 million). Break Levels: A number of break levels may be entered for each interest profile transaction, enabling the finance company to offer differing rate margins depending on the balance of the investment. A negative rate margin should be used for borrowing (credit) accounts The Credit Account breaks must be entered in descending order. The rate will apply to accounts with a balance down to and including the corresponding amount. |
Rate Margin | Enter the appropriate rate of interest that should apply to each ‘Down To’ Amount |
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