Setup of a Daily Interest - Reinvest Account
Purpose
To allow the setup of a Daily Interest Reinvest Account.
- Interest amount is due to be reinvested weekly, fortnightly or monthly etc
- The Principal Loan amount is due for repayment on the last Interest Repayment Date
- The Interest is calculated on a daily 365 calculation and reinvested on the principal balance of the account
For Example:
- $1,000,000 Loan paid at 7% interest,
- 12 Month Loan
- Total interest payable on the loan is $72,289.91
- 12 monthly interest amounts that are reinvested to the principal ledger each month
- Total Loan amount is due to be paid with the last Interest Payment
Loan Setup Required
Complete the loan dialog with any missing information when the quote is turned into an account. The following MUST be entered for the Instalment Setup to allow for the payments to be collected:
Field | Explanation |
Next Instalment | Enter the Last Interest Charged Date for the Interest Payments |
Instalment Frequency | Set to Yearly |
Instalment Day | Leave Blank |
Instalment Amount | Enter the total amount of principal and interest due to be collected at the end of the term |
Interest Only % | MUST be set to 0 |
Interest Dialog Setup
The Interest dialog on the Account MUST be set up as below:
Field | Explanation |
Next Interest Date | Enter the first Interest Charged date from the schedule |
Frequency | Set to the frequency that the interest will be reinvested |
Day | Enter the day number of the Next Interest Date (only if the frequency is monthly |
Interest Action | Must be set to Reinvest |
Direct Debit Dialog Setup
The Direct Debit dialog will be setup to take one single DD payment at the end of the loan term.
| Field | Explanation |
| Next Date | Leave Blank |
| Next Amount | Leave Blank |
| Standard Date | Enter the last interest posting date/instalment posting date for the direct debit |
| Frequency | Set to Yearly |
Standard Amount | Enter the Payment Due amount from the schedule, Principal + Interest total amount |
Bank Account | Enter the Bank account to direct debit |
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