Accrued Interest - Tracking Month By Month
Collect! automatically calculates interest according to your
settings and keeps track of Total Interest and Accrued Interest
in the Interest Detail settings. There may be times when you
need to report the amount of interest accrued each month.
This document shows how to grab the value of the interest
accrued in a given month and post it to the account. This
enable you to report the interest accrued each month
on an account.
There are a few pieces to put in place to accomplish this:
When these pieces are in place, Collect!'s Batch Processing
feature is used to manage your accounts and process the
transactions automatically.
Accrued Compound Interest
First we create an Interest Transaction Type with the settings shown
below.
Accrued Compound Interest Transaction Type
Notice that "Percent of Interest" is selected and that the percentage
is a NEGATIVE amount.
Also take note of the switches to turn ON.
When a transaction is posted, it will grab the accrued interest
amount and post it to the account. Run on a monthly basis,
this gives you a way to track the monthly accrued interest.
Post Interest Contact Plan
To make Collect! handle repeating events, we need to use
contact plans and batch processing. So the Transaction is
posted through a contact plan as shown below.
Enter a new contact plan in the system with the events
as follows.
Post Interest Contact Plan
This plan has the following events:
Transaction 402 Event
And to change the Calculate Interest From Date for the
account,
Edit Calculate Interest From Date Event
Now we want to run this plan on a monthly basis.
Run Interest Plan
To activate the automatic repeating feature, we need to
put the Accrued Interest contact plan into a new plan
with a Plan Event set to repeat monthly and we put in
a Delay Days. This is necessary to put it into the
automatic processing queue.
Run Interest Plan Contact Plan
This plan has only one event with the following settings:
RunPlan Event
Notice that this Plan Event is set to Repeat Monthly
and that the Delay Days is set to 1.
Setting Up The Process
Try this out in your Demodb database!
Post the zz2 plan on a debtor. This will schedule the Post
Interest Plan to run tomorrow. Tomorrow morning, use the Tools,
Batch Processing, Process Automatic Contacts, Run Plans
option. This will post the Transaction and set to plan to run
again in a month.
This will result in a transaction posting the interest amount on the
monthly basis on the account.You would use the batch processing
utility each day to process any automatic plans that you scheduled
this way.
The transaction will get posted and the plan will advance a month.
A report can then be designed to go through and pickup the
accrued interest for the month and print it out any way you want.
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