Interest Calculations

  • Interest Calculations

    Posted by DSC Communities on December 7, 2016 at 4:51 pm
    • Aimee Crowe


      December 7, 2016 at 4:51 PM

      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?

      Aimee Crowe
      Accounting Analyst
      Christian Homes, Inc.
      St. Louis MO

    • Thaddeus Suter


      December 12, 2016 at 9:42 AM


      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.

      Thaddeus Suter
      Retus, Inc
      Helotes TX

    DSC Communities replied 7 years, 2 months ago 1 Member · 0 Replies
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