Penalties
Penalties tracks charges on overdue loan dues. Penalty accrues at a monthly rate on what is late, and this screen is where it is calculated, reviewed, and waived where you decide not to enforce it.
Where to find it
Go to Customer Loan > Penalties.
What the list shows
| Column | Description |
|---|---|
| Loan # | The loan in arrears. |
| Customer | The borrower. |
| Due Date | When the instalment was payable. |
| Days Overdue | How late it is. |
| Overdue Amount | What is unpaid. |
| Penalty Accrued | The charge accumulated so far. |
| Status | Accrued, collected or waived. |
How penalty accrues
| Setting | Effect |
|---|---|
| Penalty Rate (% / month) | The monthly charge on overdue amounts, set in Settings. |
| Grace Days | How long after the due date before penalty starts. |
| Recalculate | Refreshes the snapshot so accrual is current. |
Recalculate before acting on the figures. Penalty accrues with time rather than with transactions, so a snapshot taken last week understates today's position — and quoting a stale figure to a borrower means quoting it twice.
Waiving a penalty
A penalty can be waived where you decide not to enforce it. The waiver is recorded rather than the charge being deleted, so the decision and who made it stay visible.
Where penalty income goes
Collected penalties post to the Penalty Income GL Account set in Settings, separate from interest — which is what lets you see how much of your income comes from lending and how much from arrears.
Related pages
- Collection — collecting penalty with a due
- Loans — the loans in arrears
- Settings — rate, grace days and the income account