[Aimee Crowe]

Is there a way to get Scheduled Payments to only calculate interest and no principal.  We want to use GP to manage our GO Bonds and we need to make quarterly interest payments, but we don’t pay anything on the principal until the bond matures.  I found that Scheduled Payments can calculate the interest for me, but I can’t get it to ignore the principal and leave it alone.  Any ideas or other suggestions for how to manage something like this?

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Aimee Crowe
Accounting Analyst
Christian Homes, Inc.
St. Louis MO
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[Thaddeus Suter]

Aimee,

The only way to do it using Scheduled Payments is to separate the GO Bond into its IO and PO components when you post the Payables Transaction. Hyphenate the number w IO and PO so you know which is which when posted and post two transactions.

Now you can Schedule the IO component and let the PO ride. When you set up the IO, enter the quarterly Calculated Payment amount yourself and the Interest Rate at 0% or just enter the number of Payments with Interest at 0%. Let the Scheduled Payments  then calculate the number of payments or the quarterly amount whichever you did not enter. Your amortization schedule will now be correct to amortize the IO.

Note: Added 12/14/16. The accountants normally wash the DR and CR accounts when posting the IO component as not to create a liability. The PO posts normally setting up the liability.

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Thaddeus Suter
Retus, Inc
Helotes TX
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