Interest Calculation
Activities > Global Operations > Interest Calculation is used to perform an interest calculation on multiple clients in a single operation.
The Interest Calculation record must first be set up at client level in Nominal Ledger > Interest calculation.
On selecting the Global (or Cross client) Interest Calculation you are asked to choose the client class and then the clients within the client class. Selecting all clients within the client class means you wish to perform the calculation for every client in the client class with a client Interest Calculation record set up.
After selecting the clients, you are presented with the Cross client interest calculation screen.
Cross client interest calculation screen
This screen has 3 tabs.
Interest Calculation tab
- Review every calculation. Each client Interest Calculation screen is displayed before a posting is made.
- Generate run totals only. The calculation is run but no nominal entries are posted. Only the Interest calculation report is produced.
- Fully automatic posting. Postings are made automatically and the Interest calculation report is produced at the end.
- Select by category. If ticked then you can filter the clients for which the interest calculation is run. Interest categories are set up in Activities > System management > User-defined data > Interest categories. They are attached to the client on the client Interest Calculation screen. When you click OK to perform the Global Interest calculation, you are asked which Interest categories should be used to identify the required clients.
Interest period tab
- Override interest period dates. If ticked, the Starting date and Finishing date must be entered and these override the dates stored on each client Interest Calculation record.
- No check.
- If No check is ticked for the Starting date or the Finishing date, it means that the dates stored on each client Interest Calculation screen are used automatically.
- If No check is unticked, then the Starting date or the Finishing date must be entered on the Cross client interest calculation screen and the system checks that these dates agree with the dates stored on each client Interest Calculation screen. If they do not, then an error is added to the Interest calculation report.
- Starting date, Finishing date. These dates are only enabled if No check is unticked.
Invalid Records tab
- Skip and report. The Global interest calculation checks that the dates entered for the Starting date or the Finishing date are consistent with each client's year start date. An interest calculation cannot start before the client's year start date. If the dates are not valid, an error is added to the Interest calculation report.
- Wait for input. The Global interest calculation does not validate the dates. Instead, it passes them to each client's interest calculation in turn, which validates them. If they are invalid, the client's Interest Calculation screen is displayed, allowing you to correct the dates before proceeding.
It usually makes more sense to select Skip and report.
Interest Calculation Report
At the end of the Cross client interest calculation, a report is produced. It shows for each client, the account balance and the interest calculated. Later pages list any errors encountered.