Applying interest payments

Owned by Richard Kennedy (Unlicensed)
Last updated: Mar 21, 2023

The Debtor Interest Payments program pays interest on all debtor accounts that are in credit (prepaid) for any day in the date range specified. The interest will be applied as a credit charge on the debtor's account.

All interest payments are recorded and automatically maintained on the Debtor Maintenance - Instalments tab.

If instalments are marked as being stopped for a debtor they are not processed. To process stopped instalments, see the Debtor Maintenance - Instalments tab.

 Opening the Debtor Interest Payments window

To open the Debtor Interest Payments window:

  1. Select Module > Debtors > Debtor Interest Payments from the main menu.
    The Debtor Interest Payments window is displayed.

Debtor Interest Payments key fields

Selections area fields

Field

Description

Minimum Prepaid Balance

Debtors with balances in credit for less than this amount will not be paid any interest.

Statement Group

Select the statement group the interest payments are for.

Student Campus

Select the campus the interest payments are for.

Payment Type

Select the type of interest payment to apply. You can select:

  • Interest Rate to pay an annualised interest amount defined using the Annual Interest Rate and Pay Interest From/To fields
  • Fixed Amount to pay a flat interest amount.

Note: When Fixed Amount is selected the amount paid is determined by the Amount field on the General tab of Fee Maintenance. See Debtor Fee Maintenance - General tab.

Annual Interest Rate

Annual interest rate to be paid.

This is used in conjunction with the Pay Interest From/To fields to determine the amount of interest that the debtors are paid.

Note: This field and the following four fields are only active when Interest Rate is selected in the Payment Type field.

Pay Interest From/To

Date range that interest is to be paid.

Note: You need to select the Calculate Overdue Amounts Daily field to use this calculation option. See Synergetic Financial Configuration - Debtors tab - Page 2 sub-tab in the Finance manual.

Note: If a date range is selected, interest is determined by the actual balance the debtor had on each day, rather than the number of days.

Rounding Direction

Select whether to:

  • use no rounding
  • round to the nearest figure (up or down as required)
  • always round up
  • always round down.
Rounding Interval (Cents)

Set the cent interval to round to. For example, to round to the nearest five cents, use a Rounding Interval of 5.

Fee Code

You need to have a fee code and general ledger code set up for interest paid. See Maintaining debtor fees.

Charge Date

Date recorded against the credit charge transaction.

Additional Charge Description

Description placed on each individual payment line. This will assist the debtor to identify the payment.

Posting Information area fields

These fields are used to identify the posting at a later stage.

Field

Description

Posting Date

The date to post the transactions.

The general ledger year end date and restrictions on the available posting dates are displayed for information.

Note: If you try to post to a prior or future period, you are prompted to enter the word PRIOR or FUTURE to confirm that this is what you want to do. Postings to any period other than the current period may affect figures from other departments of your organisation. For example, general ledger figures are affected if you post to a prior period.

Description

Enter a description for the payments, based on the selections you have made.

Automatically Close PostingClear if you do not want to automatically close the posting.