Payment Schedules

You can accommodate different cash flow requirements by defining payment schedules for your retail term money deals. For example, for parties who are dependent on seasonal cash flows such as the agricultural industry, you can create a payment schedule that defines payments in June, July, and August when the business' cash flow is consistent, and no payments during December, January, and February when the cash flow is less consistent.

Multiple schedules can be defined for each deal subtype/product type. The deal's cash flow and calculations are based on the payment schedule selected.

Creating Payment Schedules

Use the Payment Schedule window to create payment schedules by deal subtype/product type and to define the calculation method for interest for the payment schedule.

To create a payment schedule

  1. In the Payment Schedule window, query the combination of deal subtype and product type for which you want to create a payment schedule.

  2. To identify the payment schedule you are creating, enter a unique schedule code and description.

  3. Select a payment frequency and calculation type. The calculation type is the method you want to use to determine regular payments.

  4. In the Max Postings field, enter the maximum number of months in the future that you want to generate cash flows.

    For example, when you enter the deal, you do not need to set up cash flows for all 300 months of a 25-year mortgage. You might set the Max Postings field to 36 because you want to set up cash flows for only three years.

  5. In the Extend Deal if Trans < field, enter the minimum number of months remaining before you want to extend the cash flows to the maximum number of postings.

    You can extend the cash flows to the maximum number of postings at any time by selecting Extend Transactions from the Tools menu.

  6. In the Posting Frequency field, enter the frequency at which the program checks whether the cash flows require extension. For example, if the schedule was extended on July 1, a posting frequency of 2 means that the program will not extend the cash flows before September 1.

  7. If you are creating an ad hoc schedule, check each month in which a settlement payment occurs. Use ad hoc schedules for seasonal cash flows.

  8. Save your work.