Bailment Interest Charging Rules

Bailment Interest Charging Rules

Concept

For each Bailment Dealer that is not closed, the interest posting routine finds all the Bailment Accounts that are not closed.
For each account found, the interest posting routine does the following:

On the Future Ledger:

  1. Calculates the interest accrued to be paid by the Distributor and posts it to the Distributor account if the Bailment Account is within the Free Floor Plan period
  2. Calculates the interest accrued to be paid by the Bailment Dealer and posts it to the Bailment Dealer Account if the Bailment Account is outside the Free Floor Plan period

On the Current Ledger:

  1. Calculates the interest accrued and posts the Default Interest transactions
 All transactions posted have a value date of the month end date.

If the Free Floor Plan period finishes within the current month:

  1. The interest due to be paid to the Distributor will be posted to the Distributor Future Ledger value dated the date the Free Floor Plan finished

If the account has passed its Due in Full date:

  1. Interest is accrued up to the Due in Full date and posted with a value date equal to the Due in Full date
  2. The account should be terminated as at the Due in Full date. Any unpaid balance will then have interest accrued using the Dealer Post Due in Full interest profile on the Floor Plan Profile.
 

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