This calculation uses the standard calculation for daily interest on a loan, using a 365-day simple daily calc type with the current balance (CURBAL) and the rate on the loan account (MEMBERx) record. For example, imagine a written off loan with a current principal balance of $25,000 and a rate of 14.50%:
| 14.50% |
36500 |
0.000003973 |
daily interest factor |
| 0.000003973 |
$25,000.00 |
$0.10 |
daily interest amount |
Keep in mind:
- This process always uses the 365-day interest (simple daily) calculation, even if the original loan was a 360-day mortgage.
- This is not a true accrual; nothing will be booked to your general ledger. It's simply a calculation of a day's worth of interest. After a per diem is calculated, that amount is added to whatever is already in the Interest accrued since write-off field in the write-off history.