| Id: | 16563 |
| Product: | finPOWER Connect |
| Type: | NEW |
| Version: | 3.02.04 |
| Opened: | 21/10/2019 |
| Closed: | 03/12/2019 |
| Released: | 11/02/2020 |
| Job: | J023165 |
 High Importance |
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Balloon Payments; new option to adjust the final Regular Payment before the Balloon Payment
A new option has been added to adjust the final Regular Payment (not due on maturity) before a Balloon Payment.
If a Balloon Payment is entered as $500.00 then it is common to see the actual Balloon Payment reduced, for example, $499.98. This is because, by default, the payment on maturity date is adjusted so the end balance of the Loans is zero. Note, the entered Balloon Payment is still saved on the Account.
Note, since the final payment will not be on the maturity date, changing its value also affects transactions dated after the payment, including interest.
To enable, under the Payments page on an Account Type, check "Adjust Final Payment before Balloon Payment?".
This is achieved by adding a special overriding Payment dated on the date the final Payment is due - adjusting by the difference between the requested and actual Balloon Payment entered.
NOTE: The adjustment may not always be made if the change in payment means the interest also changes and therefore the Loan does not calculate perfectly.