Why do loans have next payment due, current, and amount due dates?

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wtech_josh
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Why do loans have next payment due, current, and amount due dates?

Post by wtech_josh » Tue Feb 18, 2020 4:03 pm

Loans have “three” due dates in Moneylender to enable it to always know what date we’re currently billing for...

Current Due Date – driven forward by the advancement of time. There’s a setting in Portfolio > Portfolio Settings > Numbers tab > “Statements and main window use amount due from X days in the future”. The loan’s current due date is always the greatest date that is on or prior to the specified number of days in the future. This date is how Moneylender knows to move a loan forward for the next due date even if it hasn’t been paid for the previous due date.

Paid Through Date – the largest date such that the payments received are sufficient to pay the amounts due up to that date. If payments are $100/mo, and a borrower sends in $50 each month, the second month the payments would be enough to pay the first due date, and the paid through date would then reflect the first due date, even though payments were received on the second date.

Next Payment Due – This is always the due date that immediately follows the Paid Through Date. If a borrower has satisfied everything they owe for the June due date (Paid Through = June), then this day is the July due date (assuming monthly payments for this example). As a borrower pays enough to cover the amounts that became due earlier, this advances to the due date that is as of yet unpaid. If a borrower pays the current due date – let’s say tomorrow you get a payment for March on a loan, this will then skip ahead to April.

Amount Due Date – This is always the greater of the current and next due dates, and is usually the date around which most balances are shown. This mechanism allows Moneylender to advance forward on the loan due to either the advancement of time itself, or the payment on a loan pushing it into the future.

For practical purposes, Next Payment Due is the date to reference to see what date the borrower is paying towards. If the date is in the past, the borrower is late or delinquent, if it is roughly within the present the borrower is current on the loan, and if it is in the future, the borrower is paid current and possibly paid ahead. The Amount Due Date is the due date for which Moneylender will attempt to collect all monies currently scheduled to be paid by the borrower, or scheduled within the next X days as defined in the Portfolio Settings.

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