Article Details
Id:8305
Product:finPOWER Connect
Type:NEW
Version:1.03.00
Opened:08/11/2010
Closed:08/11/2010
Released:24/03/2011
Job: J006598

Accounts; added ability to charge precomputed Contractual Interest upfront

A new option has been added to charge all Interest upfront and not during the term of the loan. This means the precomputed Contractual Interest is charged to the Account and does not vary if a payment is paid early or late, ie the Interest is fixed and charged when the Account is opened.

The new setting is found under Account Types, Interest page, Options section "Is precomputed Contractual Interest charged upfront?".

The original Financial Schedule of the Account shows the Interest to be charged each Interest Period, so a full breakdown of Interest calculations is available.

The ongoing Financial Schedule of the Account still shows each Interest charged, at the end of each Interest period - but the Interest value is zero.

Note, Default Interest will still be charged during the Term of the Account, based upon the Account Type settings.

Account Financial summary page has been updated. Summary block shows "Interest precomputed to [maturity date]". Will not include "Balance Allocations" block.