Introduction

Users can calculate and charge interest with an annual or monthly interest rate, for one or more (Fisherman related) Account Classes. When processed, a single Interest Charge Adjustment transaction will be created and posted containing each Fishing Account that is receiving an Interest Charge.

Configuration

1. Ensure that all included Fisherman / Loan accounts have an assigned Interest Revenue GL Account. This can be done in several ways including:

   1. Configure the “Finance Charges” GL Account on the Fisherman Class(es) and roll them down to the individual Fisherman Accounts: Fisherman Accounting > Configuration > Fisherman Class.

   2. Configure the “Finance Charges” GL Account on each specific Fisherman Account: Fisherman Accounting > Setup > Fisherman & Tenders or Loans.

   3. Configure the “Interest Revenue GL Account” Preference: Fisherman Accounting > Configuration > Preferences.

2. Configure the default Adjustment Transaction Class to be used for the Interest Charge transaction: Fisherman Accounting > Configuration > Preferences > Transaction Class for Interest Charge Transactions.

3. Optional: Add a new Adjustment Transaction Class to be used for Interest Charge transactions. This will require assistance from NLP Support.

4. Optional: Configure the ‘Excluded Transactions’ for the Fisherman Classes and/or individual Loan/Fisherman Accounts. This will ensure that only Fishing Accounts you intend can be charged interest. Any Accounts that are Excluded from “Adjustment: Interest Charges” will not be Eligible to process an interest charge.

Processing Interest Charges

After configuring the system for Interest Charges, follow the steps below to process an Interest Charge Adjustment:

1. Go to Fisherman Accounting > Fisherman Balances, click the “More Actions” icon and select the “Process Interest Charges” option.

2. Select the Transaction Class – this should default from your preference.

3. Select the Account Class(es) you wish to include.

4. Specify the Interest Rate and identify if it’s an Annual or Monthly rate.

5. Specify the “Beg. Balance as of” date. This is the date that beginning balances will be calculated for.

6. Optional: Specify the “Less Payments Received thru” date. This is the grace date that payments received through will be deducted. Leave blank if you do not give a grace date.

7. Specify the “Interest Transaction Date”. This is the date that the Interest Charges will be posted to the General Ledger.

8. Click the “Refresh Data” icon in the header toolbar. This will populate the grid with all eligible fishing accounts based on your setup. This will include all active fishing accounts for the selected Account Class(es) that are open to the interest transaction.

9. Edit any interest amounts if necessary by selecting a line item and clicking the Edit Amounts button.  Note: Amounts cannot be edited for accounts that are not Eligible.

10. Click the “Validate” icon in the header toolbar. This will verify and ensure a transaction can be posted.

11. Click the “Process” icon in the header toolbar. This will create the Interest Charge transaction for all selected accounts that have an amount in the “Interest Amount” column. The transaction is automatically posted unless there are required attributes setup for the Adjustment Transaction Class, in which case the transaction is created with a Status of “New”. These transactions will not be able to be approved or posted until the required attribute value(s) are entered. Once posted, the fisherman balances are updated accordingly.

 The grid contains the following columns:

• Account – Fishing Account Name (ID)

• Account Class – The Account Class assigned to the Fishing Account.

• Beginning Balance – The balance at the beginning of the “Beg. Balance as of” date.

• Less Payments Received – The total payments received between the “Beg. Balance as of” date and the “Less Payments Received thru” date.

• Net Balance – Beginning Balance minus the Less Payments Received.

• Calculated Interest – The system calculated interest amount based on the rate % entered for the balance owed.

• Interest Amount – The amount the interest charge will be for. If a user has edited the Calculated Interest it will be displayed here, otherwise it is the Calculated Interest amount.

• Finance Charge GL Account – The GL Account that will be used on the Interest Transaction for each Fishing Account.  This defaults from the corresponding Fisherman account’s “Finance Charges” GL Account if one exists, otherwise it defaults from the “Interest Revenue GL Account” Preference value.  

• Eligible – displays Yes if the account is eligible (not excluded from the specified adjustment transaction class), or No if the account is not eligible (has been excluded from the specified adjustment transaction class). When the account is not eligible no balances will be displayed and the interest amount will not be editable.

• Includes Calculated Interest – displays Yes when there is calculated interest for an account, otherwise displays No.

• Includes Interest Amount – displays Yes when there is an interest amount for an account, otherwise displays No.

• Amount Edited – displays Yes if the ‘Interest Amount’ is different to the ‘Calculated Interest’ amount, otherwise it is blank.

These transactions can be run as often as needed and there is no warning if a user processes them multiple times for the same dates.