Next Due Date (NDD) Calculation
The Next Due Date (NDD) option is only available when Interest Application is set to Between transactions. This gives the choice between two calculation methods for amount past due. The amount past due helps determine the days past due and the next due date on the loan.
Next Due Date Calculation
Navigating within a specific loan and then Account Setup > Setup Terms > Advanced Configuration is where you can adjust your loan with the available fields. The next due date calculation has the options of interest-only and standard.
Here are the available options for next due date calculation:
- Standard - This option will calculate the amount past due as the amount that has come due on the loan minus the amount paid. The amount that has been paid doesn’t include principal-only payments. This is the typical setting for all loans except interest-only loans.
- Interest Only - This option is typically only used for interest-only loans. Under this option the amount past due is calculated as the amount of interest that has come due minus the amount of interest that has been paid.