Amortization Schedule Out of Balance

Amortization Schedule Out of Balance

The situation: The contracts amortization schedule is out of balance to the contracts economics. The users receive a “Current values do not amortize” error.

 

The solution: Preform a non-economic contract modification to correct amortization balance.

 

1.       Open Contract

2.       Fill out rewrite section

a.       Rewrite type: Contract Modification

b.       Date: Todays Date or next available date in January

c.       Reason code: Any

3.       Modification: A simple non-economic Contract Modification would be to enter in an amount in the Estimated Amount Financed field. There are no implications of adding a value in this field. Usually it is just used for reporting or documents. I have entered in the amount financed to this field for this example.


4.       Click Post

5.       GL entry rolls up earnings to correct.



6.       Amortization schedule is corrected

 


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