How do I ensure that interest rate adjustments are calculated correctly using notification dates?
The purpose of the Set Notification Date function is to manage interest rate adjustments on the next statement.
Please note that before setting the notification date, ensure that all loan conditions are correct, and all events (especially period breaks) have the correct dates in events.
If you have a variable-rate loan, you can set the notification date for the loan under Advanced settings.
Specify the number of days before the period break when the statements are sent out.
Once you have specified the number of days and saved this, the period view will be updated with Invoice notification.
Ensure that the Notification event type occurs on the same date as indicated on the statement.
Interest Adjustment
The amounts on the payments will have been recalculated so that interest bindings after notification are handled on the next statement through interest adjustment. If there is an interest binding with a changed interest rate between the last notification and the period break, there will also be a sum on the remaining payment line.
You need to go through the historical dates for the notification events as well as the remaining payment and manually adjust the lines that may be on the wrong date.
In the Maturity Report, you can see the interest adjustment entries itemized. The interest adjustments are also included as due in the accounting files.
Reconciling the statement via the Maturity Report
During interest adjustment, it is easiest to reconcile the statement in the maturity report, as it presents the period's interest and interest adjustment in separate entries and shows the total payment amount.