Setup of a Daily Interest - Repayable Account

Setup of a Daily Interest - Repayable Account

Purpose

To allow the setup of a Daily Interest Repayable Account. 
  1. Interest amount is due to be paid weekly, fortnightly or monthly etc
  2. The Principal Loan amount is due for repayment on the last Interest Repayment Date
  3. The Interest is calculated with a daily 365 calculation
For Example: 
  1. $1,000,000 Loan paid at 7% interest,
  2. 12 Month Loan
  3. Total interest payable on the loan is $70,000
  4. 12 monthly Interest Payments worked out by the number of days within each month
  5. Total Loan amount is due to be paid with the last Interest Payment

Initial Setup Required

Account Transaction Type

An Account Transaction Type will need to be setup and selected to the Account Type for a Daily Interest - Repayable Account
  1. Accounts | Edit/View Account Transaction Types | 


Note: The code and description (which may appear on the customer statement) should be modified to suit your business requirements.

Ensure that the GL code selected is the correct code for your business.

The Ledger MUST be Future Ledger.


Loan Setup Required

Account Details Dialog

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 Start Date for the Instalment Payments
Instalment Frequency
Enter the Posting frequency for the payments to be made on the account
Instalment Day
Enter the Day number if the frequency is set to monthly, otherwise leave blank
Instalment Amount
Must be set to 0 
Interest Only %
Enter 100

Interest Dialog

The Interest dialog on the Account MUST be set up as below:

Field
Explanation
Next Interest Date
Enter the next payment date of the Interest
Frequency
Set to Monthly
Day
Enter the day number of the Next Interest Date
Interest Action
Must be set to Transfer Account
Transfer Account
Select the account you are setting up as the Transfer Account

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