Navigation:  Loan Screens > Account Adjustment Screen > Current Account Information field group > Date Interest Paid To

Entry: System, numeric

F/M: No

Mnemonic: LNPDTO

Screen: Loans > Account Adjustment screen

 

This is the date, calculated with each payment, up to which interest has been paid on the loan. When charging interest on LIP loans, this date will appear in the history.

 

For payment method 6 loans (daily simple interest), this field is calculated in the following way. When a payment is posted, the Date Last Accrued field on the Loans > Account Information > Account Detail screen, Account tab is changed to the Date Posted. The system then takes the amount in the Principal Balance field (on the same screen and tab), multiplies it by the Current Interest Rate and divides it by the interest calculation code base (this determines the per diem). It then divides the Accrued Interest (on the same screen and tab) by the per diem and calculates the number of days. The number of days is subtracted from the Date Last Accrued and that becomes the Date Interest Paid To. When calculating the number of days, the system rounds up. For example, if the number of days is 14.9, then 15 days will be used.

 

Payment method 5 loans are the same as payment method 6 except as follows:

 

For periodic loans, this field does not change until the full payment is paid. At that time, the above-mentioned calculation is performed.

 

Also for periodic loans, the current and previous finance charges are added to the amount in Accrued Interest. The above mentioned calculation is then performed.

 

Note: This field is only an interest estimate for payment methods 5 and 6 and LIP loans. Interest rate changes or large adjustments to the principal balance will make the calculated paid-to date slightly inaccurate for the month of the adjustment. The following month this field will be recalculated using the above-mentioned calculation.

 

For payment method 0 and 7 loans only, if a loan has been sold to an investor, any time a principal decrease (tran code 510) or correction (tran code 518) is processed, the system will write to history the "date interest is paid to." This date is not changed but is written to history so that for scheduled/scheduled reporting, the system can use this date as the payment date for the curtailment.

 

Institution Option PIWD is available for payment method 6 loans. If this option is set, when a payment is posted (600 transaction code only), interest will only be paid in full-day increments. For example, if the per diem is $5.50, only multiples of $5.50 would be paid to interest ($5.50, $11.00, $16.50, etc.), up to the full amount of interest owed. Any remaining amount will be applied to principal. If the amount paid is less than the per diem, no interest will be paid.

 

The result of this option will be a more accurate Date Interest Paid To.

 

Example:

 

Given:

 

A payment of $100.00 divided by the per diem of $3.14 will be 31. The per diem multiplied by 31 is $97.34. The remainder of the payment ($2.66) will be applied to the principal.