Write off Bailment Interest
Purpose
There may be instances when at month end the amount of
accrued interest to be charged on either the future ledger or current ledger
are too small to consider collecting.
The Write Off Interest routine can be run against either
or both ledgers at the same time to write off these immaterial amounts of
interest.
Timing
Interest write off will be as at the month end date, and can be run on the month end date or a business day shortly after that
This process MUST be run prior to the Post Interest Process
That way immaterial amounts of interest will be written off before interest is charged for collection
Access
- Processes | Bailment | Write Off Interest
Process
Floor Plan Interest
Field | Explanation |
Floor Plan Interest | This will automatically check on Check off if the user does not want to write off Floor Plan Interest |
Transaction Type | [F2] to highlight and |
Write Off Amount | Enter here the amount up to which Floor Plan Interest is to be written off The amount to be entered is >= the absolute value of the accrued interest to be written off Example - if the amount entered is $5.00 all accounts with accrued interest between -$5.00 and $5.00 will be written off |
Default Interest
| Field | Explanation |
| Default Interest | This will automatically check on Check off if the user does not want to write off Default Interest |
| Transaction Type | [F2] to highlight and |
| Write Off Amount | Enter here the amount up to which Default Interest is to be written off The amount to be entered is >= the absolute value of the accrued interest to be written off Example - if the amount entered is $5.00 all accounts with accrued interest between -$5.00 and $5.00 will be written off |
The progress of the process will be displayed as follows:
Note: This process may take some time so be patient while this dialog is displayed
The 
button is enabled and can be used to stop this process
While the above message is displayed, no interest write
off transaction posting has been undertaken
The process can be re-run
The 
button is disabled
Once the process is complete the dialog will look like:
A
list of accounts will be displayed while processing
During
the listing of accounts the button can be used to stop the process
Transactions
will have been posted to all accounts listed up to the point is activated
The
process may be re-run to write off the remaining accounts
Once
processing is complete the button will be highlighted giving access to
the following dialog:
Write Off Interest Rules
There
will be a test to ensure the ledger is either on or past the month end date for
the bailment system.
If
the date is legitimate and Floor Plan Interest Write Off is checked, for each
account that has accrued interest that amount is >= the absolute value of
the write off amount a transaction will be posted for the value of accrued
interest using the Floor Plan interest charged transaction type used in the interest
posting process (On the Bailment
Account Type this is on the Bailment dialog and
has a dialog description of Floor Plan Interest Trans Type). The transaction will be value dated the month
end date of the Bailment module. A
transaction of the same value, but opposite sign will post at the same time
using the transaction type set up on the Floor Plan Interest Write Off section
of the Interest Write Off dialog. Both
offsetting transactions will be grouped.
If
the date is legitimate and Default Interest Write Off is checked, for each
account that has accrued interest that amount is >= the absolute value of
the write off amount a transaction will be posted for the value of accrued
interest using the Default interest charged transaction type used in the interest
posting process (On the Bailment Account Type this is on the initial account
type dialog and has a dialog description of Interest Charged Trans Type -
Current). The transaction will be value dated the month end date of the
bailment system. A transaction of the same value, but opposite sign will
post at the same time using the transaction type set up on the Default Interest
Write Off section of the Interest Write Off dialog. Both offsetting transactions will be grouped.
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