Collection. Interest calculation is off

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Posted on by lmai

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Hi All,

1. I wanted the cut off date to be today, 1/16/2019, but the system generated different Interest to date for each transaction below. Why does it do that?

2. The Interest amounts are off. Not sure how D365 calculates. If I take $44,946.35 *.05 = $2,247.31 *2 = $4,494.63 per 60 days. I'm off $59.54. If I calculate 59 days, I'm still off

~ $50.00

Does anyone know how D365 comes up with its numbers? Thanks so much!

5850.Interest-calculation-criteria.gif

6378.Interest-note.gif

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Financial Management

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Do you have any grace periods setup?

Can you share details of how you setup the interest code used?

Many thanks,

Ludwig
lmai 2,442 on at

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Hi Ludwig,

Yes, 2 days grace period. So if I haven't received the payment from the customer after 2 days of past due, the system is not calculate that 2 days of interest, correct? If so, I'm even more off :-)

Thanks
lmai 2,442 on at

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Hi Ludwig,

Yes, 2 days grace period. So if I haven't received the payment from the customer after 2 days of past due, the system is not calculate that 2 days of interest, correct? If so, I'm even more off :-)
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Ludwig Reinhard Microsoft Employee on at

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Hi Kim,

Here is how your interest is calculated

Best regards,

Ludwig
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Hossein.K 6,650 on at

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Hi Kim Johnson,

Do you set "grace period" filed in "Interest" form?
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Hossein.K 6,650 on at

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In dynamics, there is a class called be "CustInterestCreate". In this class there is a method "calcInterestAmount".All of process of calculate of Interest are made in this method.

This class does according of open transaction which is stored in "CustTransOpen" table.

Grace field cause date of open transaction build after value of grace.
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Veronika Filonenko 1,261 on at

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Hi,

This is an easy one. If you look at your screen shot, at the column -- Days, you can see that the system rounds up to months (30 days, 60 days,)

It must come from your interest code set up which is dictating to calculate 'every month'. If you want it to be more accurate change the set up to be calculating by 'day'.
lmai 2,442 on at

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Thank you, Hossein, for your screenshot
lmai 2,442 on at

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Thank you very much Ludwig for taking the time to provide the calculation. I'm now cleared.
lmai 2,442 on at

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Thanks, Veronika.