Option added to apply Residual Value Calculation to Balloon Payments

Balloon Payments can now be configured to calculate in the same method as Accounts using Residual Values, as previously there were differences in how they were calculated.

The previous method of Balloon Payment calculation would occasionally not be able to calculate an entire schedule which allowed accuracy to the cent for the Balloon Payment.

For example, a Balloon Payment of $25,950.00 may actually end up being $25,949.33 in the schedule, a difference of $0.67.

Whilst this may have been acceptable for some (as the actual value was always less than the specified Balloon Payment), depending on finance contracts, some use cases meant that this Balloon Payment needed to be exact, 100% of the time. The Residual Value calculation didn't have the same discrepancy, so the Residual Value version of Balloon Payments (RVBP) uses the same calculation as Residual Value to generate the schedule.

The existing Balloon Payment calculation is still perfectly suitable for those who are happy with how it performs. However, for those where it is business-critical for Balloon Payments to be exactly as entered, 100% of the time, the RVBP calculation is recommended.

RVBP can be enabled here: Account Type, Payments, Use Residual Value calculation method for Balloon Payments?

As the RVBP calculation matches that of Residual Values, the following Balloon-related Account Type options are not available when configured to use this new calculation method:

• Include Regular Payment with Balloon Payment?
• Adjust Final Payment before Balloon Payment?

When using this new option, Accounts cannot be configured with both a Balloon Payment and Residual Value. Only one can be used at a time.

The following HTML Widget has been updated:

• HtmlWidget_AccountTypeEdit
• Version: 1.09 (04/02/2026)

Note: Similar to a Residual Value, if an Account is pre-paid - the Balloon Payment will no longer be in the schedule, as without any modification to the schedule, the agreed date and value of the Balloon Payment is no longer accurate. Accounts which are prepaid will need to be manually reviewed to ensure the Balloon Payment is handled as per business rules in this scenario.