Debtor Overdue Charges - Interest Calculated Daily

Modified on Wed, 4 Mar at 5:54 AM

TABLE OF CONTENTS

Summary
End Result
Method
Considerations

Summary

This article explains how to configure Synergetic to calculate interest on Debtor overdue balance on a daily basis.

End Result

This configuration will calculate interest on the over due balance from the date considered overdue, once a payment is made it will only continue to calculate interest on the remaining balance on a daily basis.

Method

Using the following configuration an interest amount will be calculated on any Debtor who has an overdue balance charged on a statement.

First you will need to configure your system to log the daily balances

1. Go to System > Finance Configuration Maintenance > Debtors > Page 2

2. On this screen you need to tick the box for 'Calculate Overdue Amounts Daily' - This flag creates a working table that looks at the debtors balance each night via a daily job, this stores a snapshot of the debtors balance for each day.

3. You need to set a Days Between Letters 1: - This is the amount of days from when the statement is run to when it becomes over due. For example the statement is run on September 1, it becomes overdue on Sept 20 - So you would set this to 20 days - You can ignore the remaining days as for this scenario the additional fields are not needed.

4. In Debtors > Debtor Maintenance > General Tab each debtor who is eligible to have interest charged needs to have the 'Allow Interest to be charged' Flag ticked

Then in Debtors > Debtor Overdue Charges

You need to complete the following fields

Minimum balance
Statement group / Student Campus (you can leave this blank if you wish to include all)
Charge Type - Interest
Annual Interest Rate
Charge Interest From: To: Dates
Fee Code

The amount of interest that is charged per day is the annual amount divided by 365, divided by 100

Considerations

This function cannot back date the interest charges from before it was configured. You may need to consider when you wish to start running the charges from ie. The start of a statement period.

Once a Debtor has been Deleted or Archived you can not use this method to calculate interest on the balance outstanding prior to being archived.