Interest Rate Changes
Posted by Linda, Last modified by on 02 February 2007 10:17 PM
INTEREST RATE CHANGES|
Interest bearing accounts in some situations may have interest rates change during the life of the account.
To deal with this situation, one creates a transaction types that posts -100% of accrued interest, and runs that transaction in a plan that also edits the 'Calculate Interest From Date' to today and the 'Interest Rate' field.
Help topics are available here:
1. Changes periodically or every year:
As described above, a contact plan is required which contains:
i) A transaction type event that calls a transaction type that posts -100% of accrued interest.
ii) An Edit type event that sets the Annual Interest Rate to the new rate.
TIP: The Description field for this Edit type event would read: @id.air = 7.65
if your interest rate is 7.65 percent. Change the number as needed.
iii) An Edit type event that sets the Calculate Interest From Date to today.
TIP: The Description field for this Edit type event would read: @id.cifd = @d
If you are entering a new account which had variable interest over its history, you simply post an amount for all interest up to the date of listing. Then you start interest calculations at your desired rate starting on the date of listing.