Finance - Principal and Interest

Overview

Use the payment type Finance - Principal and Interest to set up a payment schedule to make payments to your financier and to record both principal and interest values of the finance arrangement. This is only available when it has been enabled in the Contract Types / Payments tab. You must configure either Finance or Finance - Principal and Interest for a given contract type, not both.

Visit the Contracts / Payments - Workflow page for step-by-step guidance on processes in this area.

The Finance - Interest and Principal variation also calculates interest and principal components of each payment and stores that information. It does not take into account any deferred period.

The Principal and Interest calculation will add an extra row containing arrears interest if the Supplier/Financier field “Payments Arrears Interest” is ON and the Contracts / Finance “Advance/Arrears” field is set to Arrears.

Review the Principal and Interest calculation spreadsheet for full calculation details.

The monthly payment amount used in P&I calculations is based on Cost of Funds, not Finance Rate. This means the payment value must be overridden or taken from financier documentation. A Finance Payment at COF flag in Contract Types / Details can be enabled to recalculate the monthly payment amount at Cost of Funds when quotes are Accepted or Settled.

Warning: When setting up Payments for Contract Types using Principal and Interest schedules, the Debit GL Codes used for FIN, INT, and PRI posting classes must be unique for the Xero PL Export to function correctly.

Finance
Finance - Principal and Interest
Comprehensive Insurance
Roadside Assistance
Management Fee
Sundry Payment
Sundry Payment - Packaged

Payment Structures

Payment Type (Drop List)

Choose Finance.

Payee (Text)

This field will be blank unless the contract is salary packaged. It is read-only.

Payment Method (Text)

This field will be blank unless the contract is salary packaged. It is read-only.

Schedule (Drop List)

Displays the Supplier Code, Supplier Ref, and Final Payment Due of the selected schedule in the format:
Code - Ref - Due

If multiple schedules exist, the active schedule is displayed. The active schedule has an asterisk appended (e.g. Code - Ref - Due*). Selecting --ALL-- displays all schedules from oldest to newest.

Supplier (Lookup)

Displays the supplier code and name of the supplier being paid. If Contracts / Finance “Financier” is populated, this defaults into new schedules.

Warning: Changes made here will update the Contracts / Finance “Financier” field.

Supplier Ref (Text)

Enter a payment reference. If Finance Ref exists, it will default into new schedules.

Warning: Changes made here will update the Contracts / Finance “Finance Ref” field.

If generating ABA files, the Supplier Ref is used as the reference when Suppliers / Account “ABA Format Type” is set to Payment Reference. Spaces at the start or end are removed automatically.

Initial Payment (Num)

If Contracts / Finance “Initial Payment” exists, it defaults into new schedules. Otherwise, Regular Payment is used.

Warning: Changes update the Contracts / Finance “Initial Payment” field.

This field may be updated via Refresh Base Rate or RefreshQuoteBaseRate.

Regular Payment (Num)

Defaults from Contracts / Finance “Regular Payment” if available. Can be overridden.

Warning: Changes update the Contracts / Finance “Regular Payment” field.

CSD Rate (%)

Defaults from Contracts / Finance “CSD Rate” if available.

Warning: Changes update the Contracts / Finance “CSD Rate” field.

Only shown when required by Contract Type setup.

Initial GST (Num)

Calculates GST for Initial Payment. Hidden if Contract Types/Payments “G” = N (value set to 0).

Regular GST (Num)

Calculates GST for Regular Payment. Hidden if Contract Types/Payments “G” = N.

Periods Deferred (Num)

Defaults from Contracts / Finance “Finance Deferred” if populated. Affects first payment due and total payments.

Periodic Interval (Drop List)

Defaults to Monthly, but can be changed.

Due Day (Num)

Defaults from Finance Due Day if set, otherwise 1. Used for calculating due dates.

Total Payments (Num)

Calculated as Term minus Periods Deferred, but can be edited.

1st Payment Due (Date)

Defaults from Finance Start Date or first of next month after Contract Start.

Changing this updates subsequent due dates.

Final Payment Due (Date)

Calculated from 1st Payment Due and Total Payments.

On Hold (Check Box)

Used to place schedule on hold. Rules apply based on system configuration.

Stop Payments (Check Box)

Stops payment processing. Rules apply based on system configuration.

Contract Totals

Life Billing Budget (Num)

Total GST-exclusive billing records in Posted or Pending status.

Life Payments (Num)

Total GST-exclusive payment records in Posted or Pending status.

Variance (Num)

Difference between Billing and Payment totals.

This highlights mismatches between scheduled payments and billing expectations. Small variances may occur due to timing or rounding differences. Used to validate correct lease setup.

Notes and Payment Schedule Grid

Notes

Enter a free-text note for the schedule.

Payment Schedule Actions

Print

Generate PDF or CSV output of the payment schedule.

Edit

Allows editing of pending rows (Date, Finance, CSD values).

Warning: CSD will not auto-recalculate during edits.

Insert

Insert a new payment line for corrections or adjustments. Supports negative values. Schedule re-sorts by period.

Un-Post

Unpost selected posted rows if permitted. Some rows may be locked due to BECS or BPAY processing.

Delete

Deletes selected pending rows. Not available for posted rows.

Vary

Rebuilds pending payment schedule based on updated structure (e.g. term or amount changes). Inserted rows are not modified.

Generate Payments

Creates required payment records.

Screen Legend

Pending

Red text. Not yet posted.

Pre-Post

Black text on yellow background. Requires reset.

Posted

Completed and exported for accounting systems.

Stopped

Greyed out records that have been stopped.

History Only

Informational records only.

On Hold

Paused payment records.

Finance Due Day Logic

When Finance Start Date is entered or updated, the system uses Suppliers / Account “Pay Due” to determine the Finance Due Day.

Pay Due Formats

Single Day

Example: 19 → becomes 19th

Multiple Days

Example: 5,15,30
The next available day after the Finance Start date is selected.

DOM (Day of Month)

Uses the day number from Finance Start date.

Finance Due Day Examples