Payment Date Application

General

The payment date application gives you the option to have payments apply either based on the actual payment date, or the scheduled payment date.  See  Log a Payment for information about how payments are made.

Actual/Next

This option is by far the most typical selection.  Making this selection means that if the account is past due, the payment will apply based on the actual payment date, otherwise it will apply to the next payment.  The next payment scenario will be different depending on the  interest application setting (between periods/between transactions).

Last/Next

This option lets you choose to have payments apply either on the date of the first missed payment on the account, or to the next payment.  The next payment scenario will be different depending on the  interest application setting.  So, if you had a payment that came due on February 1, but it is now February 23, if a payment applies as Last/Next, it will apply on February 1.  The payment date will actually be changed in this scenario to February 1.  If you change the setting back to Actual/Next, it will have no effect on payments that have already been logged.

This setting is usually not desirable because you don’t accrue any extra interest when payments are late.  When a borrower pays late the payment is applied as though the borrower paid on time.

Last/Next Application

If a payment with a setting of Last/Next is logged on 10/22/2015, but the borrower had previously missed payments on 8/31 and 9/30, the Last/Next payment application will apply the payment to the missed payment that is furthest in the past. This means the payment applied on 8/31. So, even if you select the date of 10/22/2015 while logging the payment, it will be applied on 8/31.


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