How to prevent payments from being applied to late fees

Handling payments and adjustments, running reports, doing your accounting with Moneylender.
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mark415
Posts: 18
Joined: Tue Sep 28, 2021 10:17 pm

How to prevent payments from being applied to late fees

Post by mark415 »

How can I prevent payments from being applied to fees?

I received a large payment sufficient for several regular payments and before satisfying all the interest due, Moneylender applied part of the payment to late fees so that the fees were completely satisfied, but a balance due was left for interest. I would prefer the opposite order of operations.
wtech_josh
Site Admin
Posts: 86
Joined: Tue Jul 30, 2019 7:17 pm

Re: How to prevent payments from being applied to late fees

Post by wtech_josh »

There's a checkbox on the Loan Settings (Settings tab) for "Pay regular payment before fees" which will apply the scheduled amount to interest and principal and then apply any overage towards fees. Also of note is the adjacent checkbox for "Pay regular payment before escrow" which has a similar effect.
mark415
Posts: 18
Joined: Tue Sep 28, 2021 10:17 pm

Re: How to prevent payments from being applied to late fees

Post by mark415 »

Hi Josh,

Thanks for those pointers and for jumping on the phone with me to find a solution.

You discovered that I had checked the box "Charged but not due" on the Late Fee setting on this loan. You further noted that this setting combined with an earlier waived late fee was interfering with the payment processing algorithm.

I couldn't recall why I had ever checked that box. But unchecking it solved this problem and on first investigation the change did not seem to have any negative impacts for the accounting on this loan.

Thank you,
Mark
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