Automatic transaction reminders with additional principal payments
The knowledgebase has an article on how to add extra principal payments to a mortgage or other loan account. That's great if you are entering the payments manually. Using the transaction reminder to automatically enter the transaction doesn't work quite the same way.
If you set up the loan account and let it calculate the proper payments for a simple interest loan, it's correct. If you follow the next step create the transaction reminder for the payment, things are still good if you are only paying the required payment.
Adjusting the payment total to the increased amount works fine for the first payment. Subsequent payments don't properly adjust the interest calculation to reflect the reduced value due to the principal reduction. Instead if seems to change the transaction to fixed values for the principal and interest, not even automatically adjusting the split like it does if you just paid the required payment.
I was rounding my mortgage payment up to the next full dollar but it was screwing up the reconciliation of the accounts so I had to change it back to paying the exactly specified payment for simplicity. I rounded up my car payment as well and didn't change it back to the minimum. Over the past 6 months the account in Moneydance is now off by $22 and I can't find a way to simply adjust the loan account value. With Quicken I could do an account reconciliation and insert an adjustment entry to get the register in sync with the account. I can't find a way to do that with the loan account since you're not allowed to directly insert transactions into the register.
So, the suggestion is to have the automatic transaction reminders understand additional principal payments on loans and compensate accordingly.
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1 Posted by Angie Rauscher on 30 Apr, 2010 05:45 PM
We're continuing to work on the interest/principal reminder split issue, but it's been a sticky one to pin down. I apologize that it's taking so long to correct this issue, it's still on our plate. Please let me know if I can be of further assistance,
Angie Rauscher
Moneydance Support
Angie Rauscher closed this discussion on 30 Apr, 2010 05:45 PM.