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Interest on arrear balances - tenants and sectional title owners

 

The relevant interest rate to be charged is setup as follows:

 

- on the Property level, to all units in a property - Maintenance - Property, field 23, unless a unit specific rate has been set, which will override the Property rate.  Enter the annual interest rate, or a rate relative to the prime rate eg.  'P+2'.  

 

- On the Unit Level, for one specific unit - Maintenance - Unit field 32.  This will override any rate set on the Property level, as described above. Enter the annual interest rate, or a rate relative to the prime rate eg.  'P+4'.  A individual unit can be blocked from charging interest by setting the relevant control flag on Maintenance - Unit.

 

The prime rate is setup on Maintain Prime Interest Rate on the Administration, System Setups and Utilities

 

The interest is usually raised at the time that the unit statements are prepared and sent out for the next month.  Interest is raised using one of the interest options on:

 

- Administration, Monthly routines, Middle of Month (Tenant statements) Menu

 

When running the above options, the system will produce an unposted Sundry Adjustment Batch, which will need to be posted using the relevant screen.

 

Interest raised in this way will always be posted to the Billing Period (Next month)

 

If you enter a specific rate ( not a P+ rate ), then you must enter the annual interest rate - eg. to achieve a charge of 2% per month, enter 24 as the interest rate.

 

Interest is calculated at the relevant rate, for the full month, if there is a balance due at the date that the interest it is raised. There is an alternative option to calculate interest, based on the daily balance, if paid after the seventh of a month, which is available in certain accounts.