Article Details
Id:9898
Product:finPOWER Connect
Type:FIX
Version:1.05.05
Opened:03/04/2012
Closed:04/04/2012
Released:08/05/2012
Job: J009379

Account Calculations; fails to calculate when entering Total Interest value

In the Account Quotation and New Account wizard, if you use the Total Interest value override facility it may fail with the message:

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Cannot calculate Interest Rate from Total Interest value.

Cannot calculate Account Payment value.

The Payment value cannot be calculated. Reasons for this include:

1. The Balance Payable is spread over too many Payments.
2. The Final Payment date does not coincide with the Maturity date.

Consider:

1. Decreasing the Number of Payments.
2. Changing the Payment frequency.
3. Changing the First Payment Period to 'Standard'.
4. Using a Balloon Payment.
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When using the Total Interest value overrider finPOWER Connect has to guess the Interest Rate and keep trying until it finds the best Rate. It does this in two stages, firstly by starting with a low guess and doubling the guess until it is too large. Then it does a binary chop on the last two rates it tested until the best rate is found.

However, if there are many overriding payments a low test rate may cause the "regular" payment to be negative (because the overriding payments are too large) and therefore the calculation fails before it finds a range of rates that work.

The Total Interest value overrider function has been amended so if the "regular" payment caluclated is negative it continues, assuming the rate is too low.