I created a floating rate loan but the interest flows have zero values. What can I do?
You may have missed the first interest rate in the INTEREST RATES table, which is a separate sheet in the agreement view.
How is the next interest updated into the floating rate loan?
You two options:
If you have put the correct reference rate with the right tenor, the system will automatically start to read the interest table and update the interest if there is interest to be updated. The System will read interest rates from the Rates -> Money market rates interest rate table. If the system does not find an interest, it will be mentioned in the interest rate table that the "Interest rate is missing" for a specific date.
Manual updating is yet another option that you can use to update the interest into the floating rate loan.
You can also use the Loan maturity report to check if there is an interest that needs to be updated for a certain loan.
What can I do if I want to show in my accounting the unpaid accrued interest, but cannot see the payment flow?
All accounting should be done using reporting or accounting. Accrued interest can be seen, for example, in the loan’s month end report.
I have a facility type of loan and I want the nominal amount to be the max facility amount. However, I do not want the first payment to be the max amount. How can I do that?
Put the max amount to the Nominal amount when you enter the agreement. Then, when you have saved the agreement, just change the first payment to be the actual first capital amount payment for the right day.
I created a payment schedule for a loan, but what happens if there’s no interest cost for the last interest period?
If the last interest period is broken, it means it is not a full period, meaning that the system does not automatically calculate the interest. In this case, go into the final payment and add interest calculation dates for the broken period (Interest calculation start date and Interest calculation end date).
I created a 2nd interest flow after the initial one, but I made a mistake when creating it. I don't want to clear everything because that would also clear the interest that was created before, and that is correct. What can I do?
The easiest way to fix this is by going to the sheet LOAN CHANGE in the agreement. From there, you can delete payment flows created with the payment schedule. Delete the latest creation by clicking ‘delete’ on that row.
You can also lock single payment flows and then after you have locked the most important ones,delete the rest from "Clear all".
I want to capitalise interest. How can I do that?
Go into that interest flow by clicking the pen icon next to that payment. Then, put the part of the interest that you want to capitalise into the "Capitalised interest"-box. If the interest is with a negative value, put the negative value and if it has positive value, insert the positive sign.
I want to postpone an interest payment. How can I do that?
If you want to postpone the total interest payment, just go into that payment and change the "Payment date" to be the correct date.
If you want to postpone a part of the payment, input the part of the interest that should be postponed into "Postpone interest" -box and then to "Postpone interest date" followed by the payment date to the part of the interest that will be postponed.
If the interest has a negative value, add the negative value and if it has positive value, insert the positive sign.
I want to create an interest payment flow starting from the first day of the quarter to the last day of quarter. How can I do that?
Check that the ‘Active’ option is selected or not "Include extra day in the interest calculation". Normally, it is unselected and then the interests are calculated from start to end by leaving the last day out. If the ‘Active’ option is selected, it calculates it from start to end + one extra day, because it always starts the next interest calculation period from the next day after the last end day of the last interest period.
That being said, while creating the interest flow, take into consideration the way the dates are in the flow.
I have one floating rate loan where the interest is updated once a year. But how do I calculate open interest?
Check your interest calculation dates. If you don't have "Include extra days in the interest calculation" the interest is calculated by adding the first day and leaving the last day out. If it is active, it is calculated from start to end + one extra day, so that you get the right amount of days.