Reset Interest Basics

The Reset Interest function is very useful if you want to change the interest rate on an account and store the previous interest information. It can also be used to record accrued interest prior to a Judgement award, provided you Reset Interest BEFORE entering the Judgement Principal and Judgement Date in the Financial Detail form.

When you enter a Judgement Date, the 'Calculate interest from date' in the Financial Detail form is changed to the Judgement Date and all previously accrued interest is erased. Judgement Principal is used from then on for any interest calculation. Reset Interest can store the accrued interest information for you before you enter the Judgement Principal and Judgement Date.

This function is available when using Simple Interest or Revolving Compound Interest.

This feature does NOT allow you to reset the Interest Rate to a date prior to the date of the last transaction posted to the debtor's account. This transaction date is displayed for you in the Reset Interest form in the field labeled Last Transaction. If you want to change the Interest Rate to a prior date, first delete or remove the transaction. Please be aware that doing this may affect prior functions performed on the debtor, for instance letters or statements with the previous interest rate calculations.

When you Reset Interest, Collect! prompts you to capture the interest accrued to the Stop Date and posts it as a transaction of Type 499.

You must have a Transaction Type 499 in your system to capture the accumulated interest as a transaction. If this transaction type is not in your system, Collect! simply resets the interest but does not store any previous interest information. Please see Transaction Type Sample - Total Accrued Interest for details.

Reset Interest form

Accessing Reset Interest

The Reset Interest form may be accessed in one way. Providing you have access to the various menus and forms, you can get to the Reset Interest form as follows.

1. When you are on a Debtor account, select the field labeled Interest to display the Financial Detail form. Select the Interest tab.

2. Select either Simple or Compound - Revolving as the type of interest to calculate and the RESET INTEREST button will become visible on the Interest Detail form.

3. Select the RESET INTEREST button to open the Reset Interest form.

See Also

- Reset Interest