| Answer:
Try
this example:
Loan
Date = 07/01/04
Date first payment = 09/01/05
Interest Basis = 12
Payment frequency 1
Payment allocation code = 3
Payment type = 4
Maturity date = 09/01/08
Payment amount = ( one years interest )
This
will accrue no interest until 09/01/05. Then It will
accrue one year ( rate * balance / 1 )
Payment
type = 4 will insure the posting screen does not attempt
to apply any principal
If
the payment is received before September first. The
interest accrued will be zero.
The
payment allocation option 3 will tell the posting screen
to ignore the actual accrued interest and charge
interest through the payment date.
In
the ( not unlikely ) event that the borrower pays too
much or too little, the posting screen allows for manual
allocation of the amount paid.
After
maturity, I would recommend the loan be paid off and
replaced with a payout loan, but you could edit the
terms of the existing loan to payout status and just
keep going.
At
this point you would set:
Payment
amount = ( whatever )
Final Payment amount = ( Payment amount )
Date next = 10/01/05
Payment type = 1
Payment frequency = 12
Payment allocation code = 0 ( or something else you
might like better )
Basis = 365 ( Do not use 360, it is not allowed
for student loans )
You might get by with basis = 12 but I would not
recommend it.
If you use basis = 12 you would like allocation code 3
better .
|
