interest calculation on variable debt needed

Hi all,

hope there's someone out there that has needed to do this

I need to run a loan / credit account, the amount of which has the ability
to go either up or down due to capital payments or drawdowns

therefore it is not an amortised loan, but kind of works as if I am running
a credit card.....

credit cards don't seem to work out future interest, and loans only allow
you to amortise one loan

please help

am guessing the answer is "you can't do that" then seeing as no response

"Stevo" wrote:

> Hi all,
>
> hope there's someone out there that has needed to do this
>
> I need to run a loan / credit account, the amount of which has the ability
> to go either up or down due to capital payments or drawdowns
>
> therefore it is not an amortised loan, but kind of works as if I am running
> a credit card.....
>
> credit cards don't seem to work out future interest, and loans only allow
> you to amortise one loan
>
> please help

Yup.

Credit card is your best bet. Not sure what you are expecting by "work out
future interest", though. Perhaps if you could expand on your expectation,
we might have some insight. I'm thinking the answer is probably "it can't do
that" but I'm not sure what you are expecting it would do.

"Stevo" <Stevo@discussions.microsoft.com> wrote in message
news:A7650BC2-AD68-4F6E-B6B9-5BEC1E7CCA12@microsoft.com...
> am guessing the answer is "you can't do that" then seeing as no response
>
>> hope there's someone out there that has needed to do this
>>
>> I need to run a loan / credit account, the amount of which has the
>> ability
>> to go either up or down due to capital payments or drawdowns
>>
>> therefore it is not an amortised loan, but kind of works as if I am
>> running
>> a credit card.....
>>
>> credit cards don't seem to work out future interest, and loans only allow
>> you to amortise one loan

Thanks Dick

ok, there are two companies

they have entered into an agreement that one will lend the other on flexible
terms, i.e. drawdown when you want, pay back when you want, as long as the
interest is paid when calculated the facility moves forwards, note I hope to
do this by direct debit

Company A has to inform Company B, i.e. work out what the interest was on
the outstanding loan based on a daily rate of closing balance on any
particular day, and then send them a 'statement' with an immediate request
for payment (manual at first but by dd soon after

example

July 1st £1,300 drawdown
July 8th £2,200 drawdown
July 10th £3,000 repaid
July 28th £1,200 drawdown

rolling balance would be £1,300 for 7 days, then £3,500 for two days, then
£500 for a futher 18 days, then £1,700 for four days

as money is coming in and out at this rate, it is impossible to create a
fair or simple transaction that would be month end based, drawdown is erratic
and repayment is also erratic, so really I need to be able to calculate a
daily interest, but apply it at the end of the month, and then either at
least show a figure at the end of the month on screen what that is, or simply
set up a report that I can send to company B at the beginning of the month,
for them to pay that month, obviously I could sit in front of a calculator
every night, but that kind of defeats the object and is very labour intensive

I am in control of company A, but company B is a customer of mine, so
effectively I have to tell company B what their interest is every month

I can't see how credit card does this as it doesn't seem to calculate the
interest for you, it merely waits for you to either download it from a
provider or enter it yourself, unless I am doing something wrong

best regards in anticipation of your help

Steve

"Dick Watson" wrote:

> Yup.
>
> Credit card is your best bet. Not sure what you are expecting by "work out
> future interest", though. Perhaps if you could expand on your expectation,
> we might have some insight. I'm thinking the answer is probably "it can't do
> that" but I'm not sure what you are expecting it would do.
>
> "Stevo" <Stevo@discussions.microsoft.com> wrote in message
> news:A7650BC2-AD68-4F6E-B6B9-5BEC1E7CCA12@microsoft.com...
> > am guessing the answer is "you can't do that" then seeing as no response
> >
> >> hope there's someone out there that has needed to do this
> >>
> >> I need to run a loan / credit account, the amount of which has the
> >> ability
> >> to go either up or down due to capital payments or drawdowns
> >>
> >> therefore it is not an amortised loan, but kind of works as if I am
> >> running
> >> a credit card.....
> >>
> >> credit cards don't seem to work out future interest, and loans only allow
> >> you to amortise one loan
>
>
>

Yup. Money has only limited ability to calculate parts of
transactions--limited to Loan Accounts as I think you'd already surmised
which, again as you'd surmised, is limited to fixed repayment schedule for
all practical purposes.

An Excel sheet could be constructed to manage these calculation fairly
easily. You'd still have to move the data to Money by hand, but since All
you'd be moving is periodic Accrued Interest amounts, this should not be
onerous. Basically, you compute a daily interest rate and then use
balanceaftertransaction_x * dailyrate * (now()-dateoftransaction_x).

"Stevo" <Stevo@discussions.microsoft.com> wrote in message
news:38462734-D1E5-4145-8E14-82E80366D0C1@microsoft.com...
> I can't see how credit card does this as it doesn't seem to calculate the
> interest for you, it merely waits for you to either download it from a
> provider or enter it yourself, unless I am doing something wrong