Applying interest payments
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.
To open the Debtor Interest Payments window:
- 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:
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:
|
| 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 Posting | Clear if you do not want to automatically close the posting. |