For instructions on calculating finance charges, refer to How to calculate Finance Charges (BB264800)

With the Overall Past Due Balance method, finance charges are based on the account's overall past due balance.

  1. The Formula
    Finance changes are calculated using the following formula:

      If calculating based on a period of days:

      (Total Overdue Balance) x (annual finance charge % / 365) x Days

      If calculating based on a period of months:

      (Total Overdue Balance) x (annual finance charge % / 12) x Months
    • How the Total Overdue Balance in the formula above is determined
      1. Sum the unpaid charge balances as of the Calculate as of date for all charges subject to finance charge (associated with a fee subject to finance charge and are past due according to the parameters set by the user) Note: The unpaid charge balance is time sensitive. When looking at each individual charge, the system will disregard applications from payments/credits with dates that fall after the 'Calculate as of' date
      2. Sum the ungenerated advance deposits(a) (if selected), ungenerated financial aid(b) (if selected), and unapplied payments and credits to calculate the Total Credit Available(c)
      3. Total Overdue Balance = (Sum of unapplied charge balances in step 1) - (Total Credit Available in step 2)
         
      If the Total Overdue Balance is greater than or equal to the Minimum Balance amount set in the parameters, a finance charge is created using the formula above.
      Definitions of (a), (b), and (c) above:
      1. How the system calculates ungenerated advance deposits
          For each advance deposit that was fully funded as of the Calculate as of date, sum the amounts of all of its credits with a schedule date on or before the 'Calculate as of' date, regardless if the credit has already been generated. This gives you the ungenerated portion per advance deposit. Sum all of the ungenerated portions.
        • How the system calculates ungenerated financial aid
            For each financial aid, sum the amounts of all of its credits with a schedule date on or before the Calculate as of date, regardless if the credit has already been generated. This gives you the ungenerated portion per financial aid.
            Sum all of the ungenerated portions.
          • How the system calculates unapplied payments and credits
              Sum the balances for each payment and credit with a transaction date on or before the 'Calculate as of' date. Note: The unapplied payment/credit balance is time sensitive. When looking at the unapplied balance of each individual payment/credit, the system will disregard applications made to charges with due dates that fall after the 'Calculate as of' date.