Forum Discussion
Re: Excel formula help
You are correct, i was just trying to see if a customer has two loans, what was the effect and i saw the issues arising, and so to avoid it then only one loan for a customer and must be cleared before another is taken.
Also, its better if I use the Loan ID, and the penalties were necessary because if loan wasnt paid by due date, then the penalties apply.
I will replace customer name with Loan ID
4 Replies
- If I remember correctly the problem is that this formula doesn't track which loan a given payment is being applied to. Technically the 2 loans could overlap as long as the first is paid off before the DUE date of the next. An additional conditional on the penalty accrual function could be added to check if the NET total payment has exceeded all prior loan commitments (i.e. prior loans paid off) and not apply payments until that happens.
yes, payments made were and the allocation was given priority to the earlier loans.
I think best is to avoid multiple loans running for one customer, but stick one loan per customer and until it is fully paid inclussive of all penalties and there is no outstanding amount, then a new loan can be
